The Canada Child Benefit is one of the most valuable government programs for Canadian families — yet many parents do not fully understand how it works or how to maximize it. Here is everything you need to know.
The Canada Child Benefit is a tax-free monthly payment made to eligible families to help with the cost of raising children under 18 years of age. Introduced in 2016, the CCB replaced the previous Universal Child Care Benefit and Canada Child Tax Benefit with a single, more generous income-tested payment.
The CCB is administered by the Canada Revenue Agency and paid on the 20th of each month. Unlike its predecessors, the CCB is completely tax-free — you do not declare it as income on your tax return and it does not affect other income-tested benefits.
For the July 2025 to June 2026 benefit year, the maximum annual CCB is $7,787 per child under age 6 and $6,570 per child aged 6 to 17. For a family with two children — one under 6 and one aged 6 to 17 — the maximum annual benefit is $14,357 or approximately $1,197 per month.
The CCB is income-tested, meaning higher family incomes receive lower benefits. The benefit reduction begins at a family net income of $36,502 and reduces progressively as income increases. Many middle and upper-middle income families are surprised to find they still receive meaningful CCB payments.
For families with one child, the full benefit is received below $36,502 net family income. The benefit reduces at 7% of income above this threshold for families with one child. For two children, the reduction rate is 13.5%. For three or more children, the rate increases further.
Even at relatively high incomes, many Canadian families continue to receive some CCB. A family earning $100,000 with two children typically still receives approximately $3,000 to $4,000 per year in CCB payments. The benefit only reaches zero at very high income levels depending on the number of children.
The CCB is not automatic — you must apply. Many new parents miss months or years of payments simply because they did not know they needed to apply. The good news is that the application process is straightforward and retroactive payments may be available for up to 10 years.
You can apply for the CCB through three methods. The fastest is through your CRA MyAccount online, where you can apply immediately after your child is born using the Automated Benefits Application service available through most provincial vital statistics offices. You can also apply by completing and mailing Form RC66 Canada Child Benefits Application to the CRA. Finally you can apply through the Automated Benefits Application when registering your child's birth with your province.
In addition to the federal CCB, Ontario families may be eligible for the Ontario Child Benefit (OCB), which provides additional tax-free monthly payments to low to moderate income families. The maximum OCB is $1,607 per child per year for families with net income below $23,044.
Several other federal and provincial benefits are tied to your CCB application. The Child Disability Benefit (CDB) provides an additional payment of up to $3,322 per year for children who qualify for the Disability Tax Credit. The GST/HST Credit also provides quarterly tax-free payments to eligible families.
Q: Is the Canada Child Benefit taxable income?
A: No. The CCB is completely tax-free. You do not need to report it as income on your tax return, and it does not affect your eligibility for other income-tested benefits. This was one of the major improvements the CCB made over the previous child benefit programs which were partially taxable.
Q: How long do CCB payments continue?
A: CCB payments continue until your child turns 18. The payment amount changes at age 6 from the higher under-6 rate to the 6-17 rate. Payments stop automatically the month after your child turns 18. If your child has a disability, the Child Disability Benefit may continue beyond 18 in some circumstances.
Q: What happens to my CCB if I have a new baby?
A: You must apply for CCB for each new child separately. The birth of a new child does not automatically add them to your existing CCB payments. Apply as soon as possible after the birth through your CRA MyAccount or by registering the birth with your province through the Automated Benefits Application service.
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