$2400 Canada Disability Benefit Starts 30 July, Are You Eligible for This New Monthly Payment?

In a major move aimed at tackling disability-related poverty, the federal government of Canada will roll out the Canada Disability Benefit (CDB) starting July 2025. This non-taxable benefit is part of the national Disability Inclusion Action Plan and will provide up to $2,400 annually to eligible working-age adults with disabilities.

The program is administered by Service Canada, with its legal foundation rooted in the Canada Disability Benefit Act, which was officially passed in June 2023 and finalized through regulations in May 2025.

Who Will Receive the $2,400 Disability Payment?

The Canada Disability Benefit targets low-income Canadians aged 18 to 64 who are living with disabilities and already qualify for the Disability Tax Credit (DTC). The first payments are scheduled for July 2025, following an application window opening in June 2025.

According to government projections, nearly 60,000 eligible adults will receive the benefit in the initial phase, with that number expected to grow in future years.

Eligibility Requirements for the Canada Disability Benefit 2025

To qualify for the new $2,400 Disability Benefit, applicants must meet several key criteria:

• Age Requirement: Must be between 18 and 64 years at the time of eligibility. Applications can begin at 17.5 years, but payments start at 18.
• Disability Tax Credit (DTC): Must have a valid and approved DTC certificate.
• Tax Filing Compliance: Both the applicant and their spouse or partner must file their 2024 income tax return.
• Residency Status: Must be considered a Canadian resident for income tax purposes. Eligible groups include:
• Canadian citizens
• Permanent residents
• Registered Indians under the Indian Act
• Protected persons (such as refugees)
• Long-term temporary residents (minimum 18 months in Canada)
• Incarceration Clause: Those serving prison sentences of two years or more are ineligible during incarceration, except for the first and last month.

How Much Will You Receive Under the CDB?

The maximum benefit amount is $200 per month, or $2,400 per year. Starting in 2026, this will be indexed to inflation. However, the actual amount varies depending on the recipient’s income level and household structure.

Income Thresholds and Reduction Rates

Here’s a breakdown of how income affects eligibility and payment size:

Category	Income Threshold	Reduction Rate	Cut-off Limit
Single Individual	$23,000	20¢ per $1 over the limit	$45,000
Single (with $10,000 working income)	$33,000	20¢ per $1 above threshold	$45,000
Couple (1 eligible partner)	$46,500 ($32.5k + $14k)	20¢ per $1 over	$58,000
Couple (both partners eligible)	$46,500	10¢ per $1 over	$70,500

Note: The exemption applies only to working income (employment or self-employment). Other income sources are not exempt from reductions.

Canada Disability Benefit – Application Process

The process to apply for the CDB begins June 20, 2025, with payments starting in July 2025. Eligible applicants may also receive retroactive payments for up to 24 months, based on the date of DTC eligibility.

Required Documents:

• Valid Social Insurance Number (SIN)
• 2024 Notice of Assessment (Line 23600: Net Income)
• DTC Approval Documentation
• Banking Information for direct deposit
• Proof of Tax Filing for 2024

Where and How to Apply

Eligible individuals can apply through the following platforms:

• Service Canada’s Online Portal (recommended)
• In-person at Service Canada Centres
• Telephone Support

Some individuals may receive notification letters starting June 2025 containing a unique application code. Others can apply via the general portal once the system is live.

Government Budget and National Impact

This program represents a landmark investment in disability inclusion and poverty reduction. The government has committed:

• $6.1 billion over the first six years (2025–2030)
• $1.4 billion in ongoing annual support from 2031 onward

The benefit is expected to lift thousands of Canadians with disabilities out of poverty and ensure they have access to basic financial stability.

What Eligible Applicants Should Do Right Now

If you believe you may qualify, you should begin preparing immediately by completing the following:

1. Apply for the Disability Tax Credit (DTC) if you don’t have it already.
2. Ensure your 2024 tax return is filed.
3. Verify your SIN and ensure all personal records are accurate.
4. Gather bank details for a smoother direct deposit experience.
5. Watch your mailbox for the CRA application code letter in June 2025.

Even if you miss the initial deadline, you may still qualify for retroactive payments back to July 2025—so act quickly.