Canada Child Benefit

Notice to the reader

This measure has received Royal Assent. 

The indexation of Canada Child Benefit payments is currently legislated to begin in July 2020. On October 24, 2017, the government released proposed legislation for indexation to begin in July 2018, two years earlier than previously planned.

Budget 2016 proposes to introduce the Canada Child Benefit, which will replace the Universal Child Care Benefit (UCCB) and the Canada Child Tax Benefit (CCTB). Starting in July 2016, the new Canada Child Benefit will provide a maximum annual benefit of $6,400 per child under the age of six, and $5,400 per child aged 6 through 17. The benefit will be tax-free and paid monthly to eligible families. Canadians already receiving the UCCB or the CCTB do not have to apply for the new benefit.

1. What is the proposed Canada Child Benefit?

Budget 2016 proposes to introduce the Canada Child Benefit that will replace the universal child care benefit (UCCB) and the Canada child tax benefit (CCTB). The new Canada Child Benefit will provide a maximum annual benefit of $6,400 per child under the age of six, and $5,400 per child aged 6 through 17. The Canada Child Benefit will be:

  • A tax-free benefit paid monthly to eligible families;

  • Paid over a 12-month period from July of one year to June of the next year (starting with July 2016 to June 2017);
  • Phased out starting when adjusted family net income (AFNI) exceeds $30,000 (determined for the upcoming benefit year from the 2015 tax return); and

  • Automatically determined, subject to the phase out, for Canadians who are currently receiving the UCCB or the CCTB.
2. Is the Canada Child Benefit included in income?

No. The amount you receive will not be included in income and will not affect your income-tested benefits such as the goods and services tax/harmonized sales tax credit and the Guaranteed Income Supplement.

3. If I am already receiving CCTB or UCCB payments, do I need to apply for the Canada Child Benefit?

No. If you are already receiving the CCTB or UCCB, you do not need to apply for the Canada Child Benefit. However, for the Canada Revenue Agency to determine how much you will get starting in July 2016, you have to file your 2015 return, even if you did not have income in that year. If you have a spouse or common-law partner, they also have to file a 2015 return.The eligibility criteria generally remain the same for the Canada Child Benefit as they were for the CCTB and UCCB.

4. If I am not currently receiving any federal child benefits from the CRA, how do I apply for the Canada Child Benefit?

If you are not currently receiving any child benefits from the CRA and you have a child under 18, you can apply for the Canada Child Benefit by using the online service “Apply for Child Benefits” on My Account. Alternatively, you can use Form RC66, Canada Child Benefits Application. For more information, go to How to Apply.

5. How is the Canada Child Benefit calculated?

The maximum annual benefit for a child under the age of six is $6,400 and $5,400 per child aged 6 through 17.

This benefit will start to be reduced (phased out) if your adjusted family net income is more than $30,000. The phase-out rate will be determined by the number of eligible children in your family and your adjusted family net income (AFNI) as outlined in the table below.

Phase-out Rates (%)
Number of eligible children     AFNI over $30,000  
and up to $65,000 
AFNI over $65,000

1 child

7.0

3.2

2 children

13.5

5.7

3 children

19.0

8.0

4 or more children

23.0

9.5

 

For example, a family with adjusted family net income of $80,000 and two children under the age of 6 would have their annual benefit of $12,800 phased out based on the total of the following amounts:

  • 13.5% of the adjusted family net income between $30,000 and $65,000
    ($35,000 × 13.5% = $4,725); and

  • 5.7% of the adjusted family net income over $65,000 ($15,000 × 5.7% = $855)

As a result, the family would receive an annual Canada Child Benefit of $7,220 ($12,800 - $5,580) or $601.66 a month.

6. How can I find out how much Canada Child Benefit I will receive?

Refer to the new benefit calculator to determine how much Canada Child Benefit you will receive starting in July 2016 under this proposed measure.

7. When does the Canada Child Benefit get completely phased out?

Refer to the new benefit calculator to determine how much Canada Child Benefit you will receive starting in July 2016 under this proposed measure. The following table provides an indication of the adjusted family net income at which the Canada Child Benefit is completely phased out for families with two or less children.

Children under 6    Children 6 through 17   Canada Child Benefit completely
phased out at AFNI

1

0

$188,438

0

1

$157,188

2

0

$206,667

1

1

$189,123

0

2

$171,579

8. When can I expect to receive my first Canada Child Benefit payment?

The first Canada Child Benefit payments will be issued on July 20th, 2016.

9. When are the Canada Child Benefit payments made?

The Canada Child Benefit payments are made on the 20th of each month, whether you receive them by mail or by direct deposit.

10. Will the CRA use my existing CCTB/UCCB direct deposit information for the Canada Child Benefit payments?

Yes. Refer to Direct Deposit if you need to change your direct deposit information.

11. Can my Canada Child Benefit payment be used to pay off my outstanding debt with the CRA or another federal department or agency?

No. The Canada Child Benefit will be protected from being applied to outstanding debts, other than Canada Child Benefit debts or outstanding CCTB debts. Alternatively, CCTB benefits may be applied to Canada Child Benefit debts.

12. I currently receive 50% of the federal child benefits as I share custody for my child. Will I continue to receive benefits?

The existing rules for shared custody will apply to the Canada Child Benefit.

13. I currently receive the child disability benefit for my child who has a disability. Will the child disability benefit continue to be available?

The child disability benefit will continue to be available for a child under the age of 18 who is eligible for the disability tax credit (DTC eligible child). For the upcoming benefit year starting July 2016, the benefit is $2,730 annually per DTC eligible child. Budget 2016 proposes that the phase out of the child disability benefit be made to generally align with the Canada Child Benefit:

  • For families with one DTC eligible child, the child disability benefit will be phased out at a rate of 3.2% on adjusted family net income in excess of $65,000.

  • For families with more than one DTC eligible child, the child disability benefit will be phased out at a rate of 5.7% on adjusted family net income in excess of $65,000.

For example, a family with an adjusted family net income of $80,000 with one DTC eligible child, the annual benefit will be calculated as follows:

Child disability benefit:
 
$2,730
1
 
Adjusted family net income
$80,000
 
2
 
Phase-out threshold
$65,000
 
3
 
Line 2 minus line 3
$15,000
 
4
 
Line 4 multiplied by 3.2%
 
$480
5
 
Line 1 minus line 5
 
$2,250
 
 
 

As a result, the annual child disability benefit for this family will be $2,250 or $187.50 a month starting in July 2016.

14. My child was born last year but I have not applied for CCTB yet. Will I get CCTB for last year once the Canada Child Benefit starts?

Yes. The UCCB and CCTB continue to apply with respect to months prior to July of 2016. If you have not previously applied for these benefits, you can still do so now by going to How to apply. Under proposed changes, you will be able to apply for the Canada Child Benefit, the CCTB or UCCB for a prior month on or before the day that is 10 years after the beginning of that month. This 10-year limitation is effective for applications made after June 2016.

15. I asked to get my notices electronically for my tax return. Will an electronic notice of determination be available for the Canada Child Benefit?

Yes. You will have access to an electronic notice of determination through My Account. The first Canada Child Benefit notices will be issued in July 2016 at the beginning of the 2016-17 benefit year. If you already get your T1 notice of assessment electronically, you will get also get your Canada Child Benefit notice of determination electronically.

16. Will the children’s special allowance, which provides payments to federal and provincial agencies and institutions (e.g., children's aid societies) that care for children, change in July 2016?

Yes. Starting July 2016, Budget 2016 proposes to increase the children`s special allowance to the same level as is proposed under the Canada Child Benefit.

Universal Child Care Benefit

17. What is happening to the UCCB in July 2016?

UCCB payments will no longer be made for months after June 2016.

18. I receive UCCB payments but I have not filed my 2015 income tax and benefit return. Will I receive the Canada Child Benefit?

No. As with the CCTB, you and, if applicable, your spouse or common‑law partner will have to file your 2015 income tax and benefit return before you can receive the Canada Child Benefit. Refer to All about your tax return for information that will help you in filing tax returns.

19. I currently receive UCCB payments even though my income is too high to receive any CCTB. Will these continue under the Canada Child Benefit?

The Canada Child Benefit is income tested, meaning that your benefit will be reduced when your adjusted family net income exceeds $30,000. Refer to the calculator to see if you will be receiving a benefit.

20. The UCCB is ending this year and I have not yet applied for my children. Is it too late for me to apply and get those payments?

No. The UCCB and CCTB continue to apply with respect to months prior to July of 2016. If you have not previously applied for these benefits, you can still do so now by going to How to apply. Under proposed changes, you will be able to apply for the Canada Child Benefit, the CCTB or UCCB for prior month on or before the day that is 10 years after the beginning of that month. This 10-year limitation is effective for applications made after June 2016.

21. Once the UCCB payments end, will I still have to report the payments I received from January to June 2016?

Yes. If you receive UCCB benefits in a particular taxation year, they will be reported on form RC62, Universal child care benefit statement and you should continue to include them on the income tax and benefit return.

22. Where can I get more information on the Canada Child Benefit and the associated changes?

The CRA is committed to providing taxpayers with up-to-date information. The CRA encourages taxpayers to check its webpages often. All new forms, policies, and guidelines will be posted as they become available.

In the meantime, please consult the Department of Finance Canada's Budget 2016 documents for details.

Report a problem or mistake on this page
Please select all that apply:

Thank you for your help!

You will not receive a reply. For enquiries, contact us.

Date modified: