Canada’s $200 Disability Benefit Begins, Massive 4 Other CRA Boost in July

Starting July 2025, millions of Canadians are set to receive enhanced financial support from the Canada Revenue Agency (CRA), including increases in five major federal benefits and the launch of a brand-new monthly payment for people with disabilities. These adjustments are being rolled out to reflect rising inflation, updated tax rules, and the government’s commitment to ensuring greater financial relief for vulnerable citizens.

This article breaks down the updated benefits, new payment amounts, eligibility criteria, payment dates, and the broader reasons behind these mid-year changes. Whether you’re a senior, parent, low-income worker, or person with a disability, there’s likely something new in your July 2025 CRA payment.

GST/HST Credit Increased—New Rates Effective July 4

The GST/HST Credit, a quarterly tax-free payment for low- and middle-income Canadians, has been increased as of July 4, 2025, to match a 2.7% rise in the Consumer Price Index (CPI).

New Payment Amounts:

• Single person: $133.25
• Couples: $174.50
• Per child under 19: $46

Eligibility Details:

• Based on your 2024 income tax return
• CRA automatically calculates and sends the payment—no application needed
• Income and family size are both considered

These payments are issued four times a year, with the July payment being the first under the new increased rate.

Canada Child Benefit (CCB) Updated—Higher Rates From July 18

The Canada Child Benefit (CCB) is a monthly payment to families to help cover the cost of raising children. From July 18, 2025, the CRA has increased the CCB by 2.7%, again in line with inflation.

New Monthly Amounts:

• Children under age 6: $666
• Children aged 6 to 17: $562

Key Points:

• Determined using the 2024 tax return
• Automatically calculated by CRA—no reapplication necessary
• Adjusted annually to reflect cost of living

This increase brings much-needed relief to parents struggling with higher food, education, and childcare costs.

Advanced Canada Workers Benefit (ACWB) Gets Mid-Year Boost—First Installment Paid July 11

The Advanced Canada Workers Benefit (ACWB) helps low-income working Canadians by providing refundable tax credits in advance. The benefit is paid in three installments across the year, with the first payment issued on July 11, 2025.

Maximum Benefit Amounts for 2025–26:

• Single workers: $1,633
• Families: $2,813
• Additional $843 if the worker has a disability

Payment Schedule:

• First installment: July 11, 2025
• Second installment: October 2025
• Third installment: January 2026

Eligibility:

• Based on your 2024 income tax return
• You must have filed taxes to receive the benefit

This payment targets those who are employed but still struggle to make ends meet, especially in high-cost urban areas.

Old Age Security (OAS) Raised Again—New Rates from July 29

Old Age Security (OAS) is a monthly pension for Canadians aged 65 and older. The CRA reviews and adjusts the payment every quarter based on the CPI, ensuring seniors’ benefits keep pace with inflation.

New Monthly Payments (July–September 2025):

• Ages 65 to 74: approximately $735
• Ages 75 and older: approximately $808

Who’s Eligible?

• Must be 65 years or older
• Must meet residency and legal status requirements
• Once approved, no need to reapply

This increase supports retirees facing rising medical, food, and housing costs, especially those on fixed incomes.

Canada Disability Benefit (CDB) Launched—Applications Open for New $200 Monthly Payment

A major highlight of July 2025 is the launch of the new Canada Disability Benefit (CDB)—a permanent federal payment aimed at low-income Canadians with disabilities.

Key Features:

• Monthly maximum amount: $200
• Annual value: Up to $2,400
• Requires approval under the Disability Tax Credit (DTC)

Eligibility Rules:

• Must be approved for DTC
• Must apply by June 30, 2025, to receive the first payments
• Income-tested: payment amount depends on adjusted family income
• Working disabled individuals can earn a certain amount without losing eligibility

This new benefit is designed to address chronic income gaps faced by disabled Canadians and improve economic inclusion for one of the country’s most vulnerable groups.

Why the CRA Benefits Increased in July 2025

There are several reasons behind this mid-year adjustment of CRA benefits, beyond the usual annual updates.

1. Inflation Adjustment (2.7% CPI Hike)

The CRA uses the Consumer Price Index to revise benefits annually and quarterly, depending on the program. The 2.7% CPI rise triggered automatic increases in GST/HST, CCB, and OAS.

2. Federal Income Tax Cut

Effective July 1, 2025, the lowest federal tax rate was reduced to 14%, boosting after-tax income and shifting benefit eligibility for some low- and moderate-income earners.

3. Mid-Year Recalculation

July is when the CRA begins a new benefits cycle, using income details from 2024 tax returns. This recalibration sets updated amounts for the next year and ensures accuracy.

4. Quarterly Adjustments for OAS

OAS is unique in that it is adjusted every three months. This ensures that seniors see regular increases, not just once per year, to keep up with the real-time cost of living.

5. New Permanent Program (Canada Disability Benefit)

The CDB was newly introduced in 2025 after years of advocacy. It marks the first federal-level financial assistance specifically tailored for working-age Canadians with disabilities.

What You Need to Do to Receive These Benefits

Most of the benefits listed above are automatic, but there are a few things you must do to ensure you receive them without delay.

File Your 2024 Tax Return

This is non-negotiable—every CRA benefit listed here depends on your 2024 return. If you haven’t filed yet, do it immediately to avoid delays or disqualification.

Update Your Bank Details

To receive direct deposit, your bank account information must be current in the CRA’s system. If it’s outdated, payments may be delayed or missed entirely.

Wait Before Contacting CRA

After the listed payment date, wait 5–10 business days before contacting CRA about a missing payment. Delays may happen, especially with mailed checks.

Know That Benefits Are Tax-Free

All five benefits discussed are non-taxable, meaning they won’t reduce your net income or be counted against you during tax filing.

Frequently Asked Questions (FAQs)

Q1: When will the new CRA benefit amounts begin?
A: July 2025. Each benefit has its own specific payment date, ranging from July 4 to July 29.

Q2: Do I need to reapply for these CRA benefits?
A: No. As long as you’ve filed your 2024 tax return and are eligible, payments will be issued automatically.

Q3: What is the Canada Disability Benefit (CDB)?
A: It’s a new monthly payment of up to $200 for low-income Canadians with disabilities, launching in July 2025. DTC approval is required.