The Canada Revenue Agency (CRA)’s announcement of these five major benefit increases is a welcome relief for millions of Canadians. Whether you’re a family with children, a senior citizen, a person with disabilities, or simply someone concerned about the rising costs of living, these updates provide much-needed financial support.
By filing your tax return on time and updating your information with the CRA, you can ensure that you are prepared to take full advantage of these benefits in 2025.
These measures reflect the government’s continued commitment to supporting its citizens, especially those most impacted by the challenges of inflation and high living costs. Make sure to stay informed and apply for these benefits to get the support you deserve.
The Canada Revenue Agency (CRA) has unveiled a series of significant benefit increases for the 2025–2026 year. These updates are designed to provide greater financial support to Canadians across various income brackets, reflecting the government’s efforts to combat the rising cost of living and support vulnerable populations. Below are the key changes you need to know about:
Table of Contents
1. Canada Child Benefit (CCB) – More Money for Families
The Canada Child Benefit (CCB), one of the most widely used support programs for families, will see a significant increase in 2025. The CRA has confirmed that families with children will receive more funds, with an increase of approximately $250 per child for the year.
- Children under 6 years old: Up to $7,997 per year ($666 per month)
- Children aged 6 to 17: Up to $6,748 per year ($562 per month)
This increase will benefit millions of Canadian families. For example, a family with two children, one under 6 and one aged 10, will see a combined benefit increase of around $500 annually.
2. Canada Pension Plan (CPP) – 2.5% Increase
Canadians who rely on the Canada Pension Plan (CPP) will also see a boost. Starting in January 2025, monthly payments for CPP recipients will increase by 2.5%, based on the rate of inflation.
- Higher CPP Benefits: This increase will impact both retirees and those on disability benefits, helping recipients keep pace with inflation and ensure their purchasing power isn’t eroded.
- How This Affects You: For someone receiving a CPP monthly pension of $1,000, this means an additional $25 per month starting in January.
The CPP is a critical source of income for millions of seniors and those who are unable to work due to disability, and this increase comes as part of the CRA’s effort to ensure that Canadians enjoy financial stability in their later years.
3. Old Age Security (OAS) – Ongoing Increases
Old Age Security (OAS) payments will continue to rise in 2025. The quarterly OAS increases will be 0.7% for the January to March period, adding to the annual increase of 2.6% seen in 2024.
- OAS Adjustments: Every quarter, seniors will see their OAS payments increase in line with inflation.
- Seniors Benefiting from OAS: With seniors particularly vulnerable to the rising cost of living, this adjustment ensures they can continue to meet their needs.
OAS is an important support for Canadian seniors who do not have other significant retirement income sources, and these increases come at a time when inflationary pressures have made everyday expenses more challenging for older citizens.
4. Canada Disability Benefit (CDB) – Enhanced Support for Individuals with Disabilities
The Canada Disability Benefit (CDB), which provides support to Canadians with severe disabilities, will also see enhancements in 2025.
- Details on Increase: While specific amounts are yet to be confirmed, the CRA has indicated that recipients will see increased support to match the growing needs of those living with disabilities.
- Why It Matters: With this increase, the government aims to improve the quality of life for individuals with disabilities, addressing the unique challenges they face in terms of healthcare, mobility aids, and accessible living spaces.
The CDB will continue to offer financial security to those who require additional care and support, particularly those whose disabilities prevent them from engaging in regular employment.
5. Climate Action Incentive (CAI) – Enhanced Carbon Tax Rebate
The CRA has also confirmed an increase to the Climate Action Incentive (CAI) rebate, which is aimed at offsetting the costs of carbon pricing for Canadians. This rebate is distributed quarterly and will see a 3% increase in 2025.
- CAI Amounts: The amount varies by province, but on average, individuals can expect to receive around $300 to $600 more annually based on the increase.
- Who Benefits: The CAI is targeted at individuals and families in provinces where the federal carbon price applies. The rebate helps reduce the financial burden of rising fuel costs, especially for lower-income households.
This is particularly significant for families in energy-intensive regions and rural areas, where transportation and heating costs are major household expenses.
Access the Benefits
To access these benefits, Canadians will need to ensure that they are registered with the CRA and have filed their most recent tax returns. If your family status or income changes in 2025, make sure to update your details with the CRA to continue receiving the correct benefits.
Related Links
$496 GST/HST Credit for October 2025: CRA Payment Dates & Who Qualifies in Canada
$2,000 CRA Direct Deposit 2025: Know If You Qualify in Canada? Check Latest News
Key Steps to Ensure You Get Your Benefits:
- File Your 2024 Tax Return: Your eligibility for benefits will be based on your net income from 2024. Ensure that your tax returns are filed on time.
- Update Your Information: If there are any changes in your household or income, make sure to update your CRA profile.
- Register for Direct Deposit: Registering for direct deposit ensures you get your payments on time, without any delays.
When Will Payments Begin?
- Canada Child Benefit (CCB): Payments for the 2025 year will begin in July 2025.
- Canada Pension Plan (CPP): The increase takes effect in January 2025, with payments reflecting the adjustment in that month.
- Old Age Security (OAS): Payments increase starting in January 2025, with quarterly adjustments thereafter.
- Canada Disability Benefit (CDB): Specific payment schedules are expected to be announced in early 2025.
- Climate Action Incentive (CAI): Rebate payments will follow the quarterly schedule, with the first payment in early 2025.
