Most Canadians, understandably, think of our income tax system as a government “program” that takes money out of their paycheques and out of their pockets. And, while it’s certainly true that virtually every Canadian who earns an income must allocate a portion of that income to paying federal and provincial personal income taxes, that’s not the whole picture. Our tax system does, in fact, provide Canadians with a number of direct benefits, through a variety of tax credit and benefit programs which actually put money into the hands of Canadians. And since that money can be obtained with minimal effort (and be received tax-free) it’s a win-win for the recipient.
Those attributes describe the basic child and family benefits paid by the federal government to eligible Canadians throughout each year. However, a substantial number of eligible recipients don’t receive benefits to which they are entitled simply because they haven’t claimed them, leaving potentially hundreds or thousands of dollars in tax-free income unclaimed each year. As well, many Canadians who do receive such benefits but who then fail to claim them annually can see their benefit payments stop, even though they remain eligible to receive those benefits.
While there are quite a number of such benefits, the process of “claiming” each of them is the same – simply filing a tax return each year. Eligibility for those benefits and/or the amount of benefit obtainable is based, in part, on the income of the recipient. When each Canadian files a tax return, the Canada Revenue Agency determines, based on the information provided in that return, the benefits to which the taxpayer is entitled and in what amounts. In making that determination, the income figure used is that from the previous year. In other words, a taxpayer’s eligibility for benefits during the 2025-26 benefit year is based on their income for 2024. And that information was provided to the Canada Revenue Agency on the tax returns for 2024 which were filed by taxpayers earlier this year.
Once the CRA receives the needed income information (usually by April 30, 2025) and determines a taxpayer’s benefit eligibility, those benefits are paid to eligible recipients throughout the 2025-26 benefit year, which starts on July 1, 2025 and ends on June 30, 2026.
It should be noted, as well, that while the federal government refers to these benefits under the umbrella term “child and family benefits”, it’s wrong to conclude that benefits are only available to parents and/or married individuals. Of the three benefit programs outlined below which will be in place during the upcoming benefit year, only the Canada Child Benefit program requires that a taxpayer be a parent, and none of the benefit programs require that a taxpayer be married or in a common-law relationship.
GST/HST Credit
The GST/HST credit is a non-taxable amount paid four times a year (on the 5th of July, October, January, and April) to lower- and middle-income individuals and families, to help offset the cost of the goods and services tax/harmonized sales tax (GST/HST) that they pay. Generally, the credit is available to Canadian residents who meet any one of the following criteria:
- aged 19 years of age or older;
- have or had a spouse or common-law partner; or
- are or were a parent and live (or lived) with their child.
The amount of benefit which may be received is determined by both family size and income level. For the upcoming (July 2025 to June 2026) benefit year, the maximum annual GST/HST benefit is as follows:
- $533 if you are single;
- $698 if you are married or have a common-law partner; and
- $184 for each child under the age of 19.
Eligibility for the GST/HST credit for the 2025-26 benefit year is determined automatically by the CRA for each taxpayer who filed a return for 2024. There is, therefore, no need to indicate on the return that the taxpayer is applying for the GST/HST credit.
Detailed information on the GST/HST tax credit can be found on the CRA website at https://www.canada.ca/en/revenue-agency/services/child-family-benefits/goods-services-tax-harmonized-sales-tax-gst-hst-credit.html.
Canada Workers Benefit
The Canada Workers Benefit (CWB) is a refundable tax credit paid to lower-income Canadian residents who are aged 19 or older or are married or have a common-law spouse or child with whom they live, and who have “working income” of at least $3,000 which was earned from employment or self-employment.
The amount of CWB which an individual or family can receive depends on marital status and net income. The basic amounts payable for the 2025-26 benefit year, and the net income levels at which eligibility for that basic benefit is eroded, are as follows.
- $1,633 for single individuals
The single individual benefit is reduced if adjusted net income is more than $26,855. - $2,813 for families
The family benefit amount is reduced if adjusted family net income is more than $30,639.
In order to apply for the CWB, a recipient must file their tax return electronically and follow the instructions provided for the particular tax return preparation software or, if filing a paper return, must complete and file a Schedule 6 with that tax return.
More detailed information on the CWB can be found at https://www.canada.ca/en/revenue-agency/services/child-family-benefits/canada-workers-benefit.html.
Canada Child Benefit
The Canada child benefit (CCB) is a tax-free monthly payment made to eligible families to help with the cost of raising children under 18 years of age. The CCB is paid to the parent who is primarily responsible for the care and upbringing of the child or children, and the amount varies with the age and number of children.
The CCB is also a means-tested benefit, with the benefit amount being reduced as family net income increases. CCB amounts paid during the 2025-26 benefit year are based on family net income for 2024.
The maximum amounts payable for the benefit year running from July 2025 to June 2026 are as follows.
For each child:
- under 6 years of age: $7,997 per year ($666.41 per month);
- 6 to 17 years of age: $6,748 per year ($562.33 per month).
Where family net income for 2024 is less than $37,487, recipients will receive the maximum amount outlined above for 2025-26, with no reductions.
Individuals and families who may be eligible for the CCB will have their eligibility automatically assessed when they file their tax return for 2024; there is no requirement to file a particular schedule or other application. More information on the CCB is available on the federal government website at https://www.canada.ca/en/revenue-agency/services/child-family-benefits/canada-child-benefit-overview.html.
Finally, there is one federal tax credit program – the Canada Carbon Rebate (CCR) – which was received in previous years by many Canadians but is no longer available. The CCR was created to help offset the cost to Canadians of the federal consumer carbon tax, and when that tax was repealed earlier this year, the Canada Carbon Rebate program was also cancelled. The last payment of the CCR was made in April of 2025.
While the number and variety of federal child and family benefits, and the varying eligibility criteria for each, can be confusing, the necessary determinations and calculations are done by the federal government. The only step which need be taken by an individual is the filing of an annual tax return. Taxpayers who wish to find information on the benefits for which they may be eligible (and to obtain an online estimate of the amount of those benefits) can refer to the Canada Revenue Agency website at https://www.canada.ca/en/revenue-agency/services/child-family-benefits.html, where detailed information on each such benefit is provided.
The information presented is only of a general nature, may omit many details and special rules, is current only as of its published date, and accordingly cannot be regarded as legal or tax advice. Please contact our office for more information on this subject and how it pertains to your specific tax or financial situation.
