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.
Be a Canadian citizen, permanent resident, protected person, or a temporary resident
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
the employment or self-employment income of each spouse
whether both spouses receive the benefit
A “working income exemption” applies, allowing some employment income to be excluded without reducing the benefit.
Service Canada provides an online benefit estimator to help determine eligibility and payment amounts.
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.