The Canada Disability Benefit is a tax-free payment introduced in July 2025 to enhance the financial security of persons with disabilities. It is administered by Service Canada.
Eligibility:
To qualify, an individual must:
Be a resident of Canada between ages 18 and 64.
Hold a valid Disability Tax Credit certificate.
Have filed an income tax return (and spouse, unless spouse is non-resident).
Be a Canadian citizen, permanent resident, protected person, or a temporary resident who has lived in Canada throughout the previous 18 months.
Not be incarcerated
Benefit amount:
The maximum benefit is $2,448 per year ($204 per month) for the payment period of July 2026 to June 2027. This maximum will be adjusted annually for inflation.
The benefit is potentially reduced based on a formula that takes into account:
marital status
net income of spouses
the portion of net income that is employment or self-employment income
whether both spouses receive the benefit
A “working income exemption” applies, allowing some employment income to be earned without reducing the benefit. For single persons, the maximum exemption is $10,000.
For a single person, the income threshold is about $23,000. For example, if a single person earned $40,000 in employment income and no other income, the benefit reduction for the year would be 20% X ($40,000 - $10,000 - $23,000) which equals $1,400.
Service Canada provides an online benefit estimator to help determine eligibility and payment amounts.
No social assistance clawback:
In Ontario, receipt of the Canada Disability Benefit will not result in a clawback of social assistance (OW or ODSP).
Payment Schedule:
Payments are issued annually from July to June, based on the previous tax year’s return.
Example: Benefits for July 2026 – June 2027 are based on the 2025 return.
How to Apply:
Applications can be completed directly through a Service Canada web page or by visiting a Service Canada location.