As cost-of-living pressures continue to affect Canadians, the Canada Revenue Agency (CRA) has increased five essential federal benefits starting in July 2025.
These changes aim to help families, seniors, workers, and individuals with disabilities cope with rising prices and economic uncertainty.
The increases are largely driven by annual inflation adjustments and a reduction in the lowest federal income tax rate from 15% to 14% beginning July 1, 2025.
This rate reduction enhances the value of income-tested benefits, resulting in higher payments for eligible recipients.
Let’s dive into the updated payment details, schedules, and eligibility rules.
July 2025 CRA Benefit Increases Overview
| Benefit Name | Payment Date (July 2025) | New Maximum Amount |
|---|---|---|
| GST/HST Credit | July 4 | $133.25 (Single), $174.50 (Couple), $46/Child |
| Canada Child Benefit (CCB) | July 18 | $666 (Child under 6), $562 (Child 6–17) |
| Advanced Canada Workers Benefit (ACWB) | July 11 | $1,633 (Single), $2,813 (Family), $843 (Disability) |
| Old Age Security (OAS) | July 29 | ~$735 (Age 65–74), ~$808 (Age 75+) |
| Canada Disability Benefit (CDB) | July (TBD) | Up to $200 per month |
1. GST/HST Credit – Increased for Inflation
The GST/HST Credit provides quarterly, tax-free payments to low- and moderate-income Canadians. In July 2025, payments rose by 2.7% due to inflation indexing.
- New quarterly amounts:
- $133.25 for single individuals
- $174.50 for couples
- $46 per eligible child
- Based on your 2024 tax return and family size
- No application needed; issued automatically
2. Canada Child Benefit (CCB) – Higher Monthly Support
The CCB helps families manage the cost of raising children. Effective July 18, 2025, indexed amounts provide enhanced monthly support:
- $666 per month for each child under 6
- $562 per month for each child aged 6 to 17
- Based on net family income and the number of children
- Requires a filed 2024 tax return
3. Advanced Canada Workers Benefit – Paid in July
The Advanced Canada Workers Benefit (ACWB) delivers upfront support to low-income workers. This year’s first instalment was paid on July 11, 2025.
- Annual maximums (2025–26 benefit year):
- $1,633 for singles
- $2,813 for families
- Additional $843 for individuals eligible for the Disability Supplement
- Remaining instalments in October 2025 and January 2026
- Eligibility determined using 2024 income
4. Old Age Security (OAS) – Quarterly Increase
The OAS pension supports seniors aged 65 and over. Payments are reviewed quarterly, and for July–September 2025, there’s a 1.0% increase.
- Estimated monthly benefits:
- ~$735 for recipients aged 65–74
- ~$808 for recipients aged 75+
- Payments sent on July 29, 2025
- Indexed to inflation and automatically adjusted
5. Canada Disability Benefit (CDB) – New Program Begins
Launched in July 2025, the Canada Disability Benefit targets low-income Canadians with disabilities.
- Maximum payment: Up to $200 per month
- Must be approved for the Disability Tax Credit (DTC)
- Applications were due by June 30, 2025
- Income-tested, meaning benefit may reduce based on household income
- Exact payment date in July is pending announcement
Why These Payments Are Increasing
Several reasons account for the updates to benefit amounts:
- Annual inflation adjustment (2.7%) using the Consumer Price Index
- Income tax cut (15% to 14%) increasing after-tax incomes and benefit thresholds
- Mid-year recalculations for benefits like CCB and GST/HST
- Quarterly OAS review tied to cost-of-living changes
- Launch of CDB to support those with disabilities
Important Reminders for Recipients
To ensure smooth receipt of benefits:
- File your 2024 tax return – eligibility depends on this
- Update direct deposit information with CRA
- Wait 5–10 business days after the payment date before reporting any delay
- Remember: CRA benefits are tax-free
The CRA’s benefit increases in July 2025 offer meaningful financial relief at a time when many households are feeling the strain of inflation and rising costs.
From higher GST/HST and CCB payments to the brand-new Canada Disability Benefit, these changes highlight the government’s commitment to supporting vulnerable Canadians.
If you are a parent, senior, low-income worker, or person with a disability, make sure your information is up to date and your tax return filed—so you can receive every dollar you’re entitled to.
FAQs
Do I need to apply for the July 2025 CRA benefit increases?
No. Most benefits are issued automatically if your 2024 tax return is filed and you meet eligibility criteria.
When will the new Canada Disability Benefit payments begin?
Payments are expected to start in July 2025, though the exact date has not yet been announced by the CRA.
Are CRA benefits taxable?
No. All five benefits mentioned—GST/HST, CCB, ACWB, OAS, and CDB—are non-taxable payments.