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Child Disability Benefit (CDB)

Learn how additional monthly support for families raising children with disabilities

Raising a child with a severe or prolonged disability often comes with emotional, logistical, and financial challenges. To help with the added costs of care and support, the federal government offers the Child Disability Benefit (CDB)—a tax-free monthly payment available to families who qualify for the Canada Child Benefit and have a child who is eligible for the Disability Tax Credit (DTC).

This matters when you are planning for long-term care, managing day-to-day expenses, or applying for government assistance. Understanding the CDB can help you access meaningful financial relief that directly supports your family’s well-being.

What Is the Child Disability Benefit?

The Child Disability Benefit is a tax-free monthly payment provided by the Canada Revenue Agency (CRA) to families who are eligible for both:

  1. The Canada Child Benefit (CCB), and

  2. The Disability Tax Credit (DTC) for their child

It is intended to help with the additional costs of raising a child under 18 with a severe and prolonged physical or mental impairment. Payments are issued monthly and continue as long as both eligibility criteria are met.

Important: The CDB is not applied for separately. If your child is approved for the Disability Tax Credit and you are already receiving the CCB, the CDB will be added automatically to your monthly payment.

Who Is Eligible for the CDB?

To qualify, you must meet both of the following conditions:

  • You are eligible for the Canada Child Benefit (you live with the child, are their primary caregiver, and meet income and residency requirements)

  • Your child has been approved for the Disability Tax Credit

The Disability Tax Credit requires a separate application process and a certification from a qualified medical practitioner. It must confirm that the child’s impairment is severe and prolonged and affects their ability to perform basic daily functions.

If your child’s DTC approval is retroactive, you may receive back payments of the CDB for those years.

Tip: If you think your child may qualify for the Disability Tax Credit, speak with their healthcare provider early. Once approved, the CDB and other benefits can begin, sometimes retroactively.

How Much Can You Receive?

The amount you receive depends on your adjusted family net income (AFNI) and the number of children who qualify. For the July 2024 to June 2025 benefit year, the maximum CDB is:

  • $3,173 annually per eligible child, or about $264 per month

The benefit begins to phase out gradually once your adjusted family net income exceeds $75,000, and is fully reduced as income increases.

Here is a general guide to how the CDB is calculated:

Adjusted Family Net Income Estimated Annual CDB (per child) Monthly Payment
$50,000 $3,173 (maximum) $264
$80,000 ~$2,100 ~$175
$100,000 ~$1,000 ~$83
$130,000+ $0 $0
 

These figures are approximate and based on annual indexing. CRA recalculates your benefit each July using the prior year’s tax return, so it is important to file your return on time.

What If Your Situation Changes?

Changes in your income, your child’s eligibility for the Disability Tax Credit, or your marital status can affect your CDB.

You should inform the CRA if:

  • Your child’s DTC eligibility ends or is not renewed

  • Your child turns 18

  • Your family net income changes significantly

  • You experience a change in custody or caregiving arrangement

CDB payments will stop automatically when your child turns 18 or is no longer eligible for the DTC. If you receive an overpayment, the CRA may adjust future benefits or request repayment.

At Optimize, we help you plan around these life events so you are not caught off guard. If your child is aging out of eligibility or you anticipate an income shift, we can forecast the financial implications and adjust your plan accordingly.

How the CDB Fits Into Your Financial Plan

Although the CDB is modest compared to the full Canada Child Benefit, it provides targeted support to families with additional caregiving demands. It can help with:

  • Medical expenses not covered by insurance

  • Assistive devices and therapies

  • Respite care or home support

  • Educational or developmental needs

You might think about this the next time you:

  • File your tax return or update your DTC forms

  • Budget for special care or education-related costs

  • Recalculate household income after a career change or separation

At Optimize, we work with families to ensure that benefits like the CDB are integrated into your financial picture. Whether it is coordinating with RESP contributions, planning medical expenses, or preparing for transitions, we help you use every available tool to support your child’s needs.