Canada Child Benefit (CCB): Who, How, and How Much?

One of our main goals at Remitly is to help you feel financially empowered. Part of that is making sure you’re aware of all of the benefits available to you abroad. If you live in Canada and have a child who is under the age of 18, you may qualify for the Canada Child Benefit (CCB). The CCB is a tax-free monthly payment from the Canada Revenue Agency (CRA) that eligible families in the country receive. 

Here, we’ll give you all the information you need to figure out if you are eligible, how to apply, and what to do to ensure that you receive your CCB payments every month.

What is the Canada Child Benefit (CCB)?

The Canada Child Benefit is a non-taxable monthly payment that the Canadian government disburses to families with children. Child benefits payments are made continuously starting in July until June of the following year. The payment amounts are based on different factors, like your family’s net income.

Why is the CCB important to Canadian families?

Government support for Canadian families with children was consolidated in the 1990s. These dedicated programs were created in response to the Canadian Parliament’s commitment to eradicate child poverty by 2000. They were then expanded into the CCB, providing monthly payments meant to help make day-to-day costs less stressful for families with children. 

Initially, Canada made unprecedented strides in eradicating child poverty. But challenges brought on by the COVID-19 pandemic stalled progress. Today, the CCB continues to serve as a cornerstone to combat this issue in Canada. 

Differences between the CCB and previous programs

Although the CCB offers monthly payments like previous programs, it is unique in several ways: 

• Child Tax Benefit (1992-1998): The first modern child benefits program, the Canada Child Tax Benefit (CTB) was a non-taxable payment to families with children. Payment amounts depended on net family income from the previous year’s income tax returns.
• National Child Benefit (1998): The National Child Benefit (NTB) was specifically aimed at low-income families with children. 
• Universal Child Care Benefit (2006-2016): Canada’s Universal Child Care Benefit (UCCB) was a taxable payment that counted as part of the recipient’s income. It was paid out to all eligible families, regardless of income level. 

In 2016, these programs were replaced by the current Canada Child Benefit. In terms of differences:

• The CCB specifically targets low- and middle-income families. 
• Payments are based on Adjusted Family Net Income (AFNI).
• Higher-earning families—specifically those with a household income of more than $150,000 CAD—will receive less than in previous systems.

How does the Canada Child Benefit work?

Eligibility requirements

There are four conditions you have to meet to be eligible for the CCB:

• You live with a child under the age of 18.
• You are the primary caretaker of the child.
• You are a Canadian tax resident.
• You or your partner is one of the following: 
  • a Canadian citizen
  • a permanent resident of Canada, 
  • a protected person
  • a temporary resident in Canada for the last 18 months, with a valid permit for the next month that doesn’t state “does not confer status,” 
  • a person registered or entitled to be registered under the Indian Act. 

You’re considered a child’s primary caretaker if you are involved in their daily activities, medical care, and the planning of child care when necessary. If you share custody with a former spouse or common-law partner, the percentage of time the child spends in your care will affect the CCB payment you receive. 

Only a child’s primary caretaker can apply for the CCB. However, you may be eligible if you fall under any of these categories:

• Your child only lives with you part-time.
• Your current AFNI is too high.
• Your child is living with you temporarily for at least one month at a time, like over summer break.
• You care for a child but are not the legal guardian. However, you’re a parenting figure under the kinship or close relationship program and meet all other CCB eligibility criteria.

Maximum income to qualify

Family net income refers to the combined amount you and your spouse or common-law partner earn before deductions. It includes income from all sources, both in and outside Canada, but not your child’s net income. Adjusted Family Net Income is calculated by subtracting any UCCB or disability benefits. 

While anyone can apply to receive the CCB, the threshold begins at $36,502 CAD. In general, as your income increases, any monthly payments you receive will decrease. As a result, the CCB becomes most impactful for low- and medium-income households.

How is the CCB calculated?

The CCB works on a sliding scale that is dependent on:

• Your Adjusted Family Net Income
• The number of children under 18 in your care
• The age of each child
• Your marital status

CCB payments are reassessed periodically. After the most recent adjustments, Canadian families who report a combined AFNI of $36,502 CAD can expect to receive a certain payment amount per child:

• Up to $7,878 CAD a year for children aged 6 years and below, or $648.91 CAD per month.
• Up to $6,570 CAD a year for children between 6 and 17 years old, or $547.50 CAD per month.

However, this number varies depending on how much your income exceeds the threshold. Here’s how CCB is calculated for eligible families with an AFNI higher than $36,502 CAD:

• For one-child families, CCB is reduced by 7% of the excess AFNI. 
• For families with two children, CCB is reduced by 13.5% of the excess AFNI.
• For families with three children, CCB is reduced by 19% of the excess AFNI.
• For families with four or more eligible children, CCB is reduced by 23% of the excess AFNI.

In each case, deductions apply to income amounts up to $79,087 CAD. Higher AFNI attracts more deductions.

Even if you think your income is too high to receive child benefits, you should still apply. The introduction of the current CCB program significantly changed thresholds for family income. You can use this official calculator tool to help you with the math. 

Additional benefits

When you apply for the CCB, you’re also automatically considered for provincial and territorial benefits. Check the official website to see which you qualify for.

Meanwhile, your CCB payments will increase if you have a child with severe or prolonged impairment in physical or mental functions. These additional, tax-free monthly payments are called the Child Disability Benefit (CDB). The CDB provides up to $3,322 CAD per child.

Apply for the Canada Child Benefit

You should prepare to apply for the CCB if you give birth to a child, begin a new shared custody agreement, or have a child start to live with you. In all cases, your spouse or partner must also meet the eligibility criteria. 

Parents of a newborn can apply via the Automated Benefits Application. Otherwise, you can apply digitally through your CRA account or on paper by submitting the relevant RC66 forms. 

Steps to apply

1. Complete an application by choosing one of the following methods:
   1. Automated Benefits Application (ONLY for parents who have recently given birth)
   2. CRA Account Digital Application
   3. Mail-in Paper Application
2. Submit a Status in Canada form if you:
   1. Became a resident in Canada during the last 2 years.
   2. Became a Canadian Citizen during the last 12 months.
   3. Are a permanent resident, protected person, or temporary person who has been living in Canada for the last 18 months.
   4. Are not a Canadian Citizen, but are registered or entitled to be registered under the Indian Act.
3. Wait for official communication from the CRA.
   1. If your application is incomplete, you’ll receive a request to provide missing information.
   2. If your application is approved, you will receive information on the amount of your CCB payments and how they were calculated.
   3. If you are found ineligible for CCB payments at this time, you’ll be notified. You can reapply once you meet all of the eligibility requirements. 

Required Supporting Documents

Several supporting documents are required as part of any CCB application. These include:

Application form

If you have recently given birth to a child, the easiest way to apply for the CCB is by using the Automated Benefits Application. Otherwise, complete a digital or mail-in application. You can only choose one application method. 

Your Social Insurance Number (SIN)

You and your spouse or partner will have to submit a Social Insurance Number (SIN) to apply for the CCB. If you don’t yet have a SIN, you can apply for one online. 

If you applied for a SIN and could not be issued one, you can submit your CCB application with proof of SIN rejection and a photocopy of one of the following:

• Passport
• Driver’s Licence
• Visitor Record
• Birth Certificate or Proof of Birth of adult applicant
• Any document issued by Immigration, Refugees, and Citizenship Canada
• Any document that proves your and your spouse’s or partner’s identity

Child’s proof of birth 

If the CRA has not previously paid benefits on behalf of your child, you must submit their proof of birth. This should include details such as the child’s full legal name and date of birth. 

Translations of documents

The CRA accepts documents in English and French. If your documents are in another language, you’ll have to submit translations along with the originals.

Important dates and timelines

• There is no application deadline. You can apply for the CCB at any point once you meet the eligibility requirements. 
• If you submit your application digitally and everything is in order, you can be found eligible and receive your first payment within 8 weeks of application.
• If you submit your application by mail, you can be found eligible and receive your first payment within about 11 weeks of application.
• If your CCB payment is less than $20/month, you’ll receive a lump sum payment in July.
• If your CCB payment is above $20/month, you’ll receive monthly payments. The CRA generally pays benefits on the 20th of the month. If the 20th of the month is a weekend of a public holiday, your payment will be processed on the last business day before the 20th. 
• Your CCB will be recalculated periodically based on your taxes from the previous year. 

Canada Child Benefit Payments and Taxes

CCB benefit payments are not taxable income. You will not receive any income slip or documentation about your CCB payments. You do not have to report CCB payments on your tax return. However, these monthly payments will stop if you do not file your tax return on time every year. If you have a spouse or partner, they must also file their tax returns regularly. 

Your CCB payments will be recalculated yearly as well as if any of the following situations arise:

• After any reassessments of your or your spouse’s or partner’s tax returns.
• After a change in your marital status, like marriage or divorce.
• After a change in the number of eligible children in your care.
• After you tell the CRA about any changes that could affect your child benefits.

If for some reason you were overpaid through the CCB, you will receive a slip to complete a repayment. If you do not complete the repayment, this amount could be withheld from future CCB payments, income tax refunds, or other sources. 

Start Strong in Canada

Overall, the CCB is in place to make your family life in Canada a little less financially stressful. The cost of feeding and clothing your child, or making sure they have everything they need to succeed, is one of Canada’s top priorities. If you’re moving to Canada with children, one of the best pieces of financial advice you can follow is to apply for the CCB as soon as you’re eligible. The support could offer a firm foundation for building your future.

FAQs

How much is the government of Canada monthly child benefit?

As the Canada Child Benefit is calculated based on your Adjusted Family Net Income (AFNI), there is no set amount. It varies based on your AFNI, the age of your child, the number of children in your care, and your marital status. 

What is the maximum income to qualify for the Canada Child Benefit?

While the CCB is open to all eligible families, the maximum threshold is $36,502 CAD. In general, as your income increases, any monthly payments you receive will decrease.

Should I apply for the CCB if the child in my care is not my biological child?

Yes. If you are the primary caretaker of a child for any period longer than one month, you should apply for CCB benefits. For example, grandparents who are watching their grandchildren for an entire summer vacation can apply for the CCB.

How can I contact the Canada Revenue Agency?

You can contact the CRA by phone at 1-800-959-8281. You can also contact them via online chat, but you’ll have to log into your CRA account.

Do I need to report Canada child benefits on my tax return?

No. The Canada Child Benefit is a tax-free monthly payment provided by the Canadian government. As such, it does not attract any tax obligations, unlike previous programs. 

Are there other benefits and programs to support families in Canada?

Besides the Canadian Child Benefit, the CRA administers ten other child benefit and credit programs that are specific to provinces and territories. When you apply to the CCB, your eligibility for these programs will automatically be assessed. You can find out more about these related programs on the government website.