New CCB rates give lower-income families more room to offset daycare costs amid tight subsidies
Canadian families with lower incomes will now receive up to $7,997 annually for each child under six through the Canada Child Benefit (CCB), following an inflation-indexed increase effective July.
According to the Canada Revenue Agency (CRA), this marks a $210 rise from the previous year’s maximum. Families with children aged six to 17 will receive up to $6,748 per child, up $178 from the prior benefit year.
As per the CRA, these maximum payments apply to families with adjusted net incomes under $37,487, with benefits gradually reduced as income rises.
The agency stated the CCB is indexed to inflation each July using Consumer Price Index data from Statistics Canada to maintain purchasing power.
In a statement to CTV News, the CRA said, “Indexing the CCB occurs every July, ensuring that the benefit protects families from inflation and provides certainty and predictability of support parents can count on.”
The benefit year runs from July to the following June, with monthly payments based on the number of eligible children, their ages, and income data from the previous tax return.
Parents with shared custody each receive half of the entitled amount.
Individuals primarily responsible for a child’s care may apply.
Reported by the Globe and Mail, the CCB is a tax-free, income-tested federal benefit. For families earning $37,487 or less, the full amount is available.
The benefit is clawed back at 7 percent between $37,487 and $81,222 of adjusted net income, then at 3.2 percent up to $231,222, beyond which the benefit is eliminated.
Statistics Canada reported that in 2023, the typical two-parent family had a pretax income of $134,600.
At that level, CCB payments would amount to $3,227 annually per child under six. For context, the most common family structure in Canada includes one child.
In Ontario, where subsidized child care is capped at $22 per day, annual costs reach $5,544.
Based on the current structure, the CCB would cover approximately 58 percent of those expenses.
While cost reductions through the Canada-Wide Early Learning and Child Care initiative have improved affordability since 2021, the Globe and Mail noted that access to subsidized spots—especially for children under 18 months—remains limited.
CCB amounts have increased annually since July 2022, as outlined by CRA’s website.
