Karen Minn
In July 2025, the Canada Revenue Agency (CRA) will begin distributing the Canada Workers Benefit (CWB)—a refundable tax credit designed to support low-income workers.
With the cost of living on the rise, the benefit has been indexed, offering up to $1,633 for single workers and $2,813 for families, plus a disability supplement of $843.
Quarterly advance payments mean many will receive up to $566 in July alone. Here’s everything you need to know to ensure you claim your entitlement.
What Is the Canada Workers Benefit?
The CWB replaces the old Working Income Tax Benefit and includes:
- Basic Amount: Helps low-income workers and families.
- Disability Supplement: Added support for individuals eligible for the Disability Tax Credit (DTC).
Advance payments (ACWB) are automatic if your 2024 tax return includes a CWB claim and is filed by November 1, 2024.
2025 Maximum Benefit Amounts
Inflation adjustments in 2025 raised both payment amounts and income thresholds:
| Recipient Type | Max Benefit | Phase-Out Begins | Benefit Ends |
|---|---|---|---|
| Single (basic) | $1,633 | $26,855 | $37,474 |
| Family (basic) | $2,813 | $30,639 | $49,391 |
| Disability supplement | $843 | $37,740 / $49,389* | $38,759 / $50,722* |
*Separate thresholds apply for singles and families.
July 2025 Advance Payment Breakdown
Advance payments are split into three. Below are July’s estimates:
| Recipient Type | July Payment |
|---|---|
| Single (basic only) | ~$265 |
| Family (basic only) | ~$456 |
| Disability supplement | +$137 |
| Max combined payment | ~$566 |
The CRA issues this payment automatically, so there’s no need for extra steps if you’ve filed on time.
Who Is Eligible?
You qualify for the 2025 CWB if you:
- Are a Canadian resident all year
- Are 19 or older by December 31, 2024—or live with dependents
- Earned at least $3,000 in 2024
- File your tax return by November 1, 2024
- Have net income below the phase-out thresholds
For the disability supplement:
- You must qualify under the Disability Tax Credit (DTC)
- Ensure CRA list contains your approved DTC form (T2201)
How to Apply & Receive Payments
No separate application is needed—just:
- File your 2024 tax return with Schedule 6 claiming the CWB (line 45300)
- Opt in for advance payments if prompted in CRA My Account
- Continue filing the CWB annually and filing before November 1 to receive future advances
Impact on Your Financial Situation
The CWB is non-taxable, meaning it does not count as taxable income. It can:
- Increase your monthly take-home pay
- Ease financial pressure during the summer months
- Provide stability with quarterly payouts
For workers with a disability, the extra supplement offers important additional support.
Tips to Maximize Your CWB
- File taxes early to ensure advance payment eligibility
- Keep your DTC status updated via CRA records
- Update CRA My Account with your direct deposit and mailing info
- Track payments on CRA online or via direct deposit alerts
The Canada Workers Benefit offers critical support to low-income Canadians, with up to $1,633 for singles and $2,813 for families, plus possible disability supplements. With advance payments, many will receive around $566 in July 2025.
To benefit fully, ensure your 2024 tax return includes a CWB claim, is filed by November 1, and you’re registered for ACWB advance payments.
This timely boost can make a substantial difference in managing living costs, providing welcome relief in today’s challenging economic times.
FAQs
Do I need to apply separately for the July payment?
No—advance payments through ACWB are distributed automatically if you’re eligible and your 2024 return is filed on time.
Is the CWB taxed or affect other benefits?
No. The CWB is non-taxable and doesn’t affect income-tested benefits.
How can I get the disability supplement?
Qualify for the Disability Tax Credit (DTC), file Schedule 6, and ensure your approved T2201 is recorded by the CRA.