A new wave of government support is rolling out in July 2025 for low-income Canadian workers.
The Canada Workers Benefit (CWB) is back with enhanced payments, and the Canada Revenue Agency (CRA) has made adjustments to the benefit for the new benefit year.
This article provides a detailed overview of the CWB advance payments and how they could impact your finances.
What is the Canada Workers Benefit?
The Canada Workers Benefit (CWB) is a refundable tax credit designed to support individuals and families with low incomes. The benefit aims to assist Canadians who are employed but still face financial hardships.
The CWB consists of two main components:
- A basic amount available to eligible workers.
- A disability supplement for individuals with disabilities.
Understanding the Advanced Canada Workers Benefit
The Advanced Canada Workers Benefit (ACWB) provides eligible Canadians with early access to part of their CWB before the tax season.
Instead of waiting until tax time to receive the benefit, the CRA sends up to 50% of the total benefit in advance through three payments each year. If you’re also eligible for the disability supplement, half of that amount will be included in the advance payments as well.
To qualify for these advance payments, you need to meet the CWB eligibility requirements and reside in Canada on the first day of each payment quarter. There’s no need for a separate application—payments are automatically issued based on your most recent tax return.
Eligibility for the Canada Workers Benefit
To qualify for the CWB, you must meet the following criteria:
- Residency: You need to be a Canadian resident for the full year and be at least 19 years old by December 31, unless you live with a spouse, common-law partner, or child.
- Income: You must earn working income and have a family net income below the set threshold for your province or territory.
Income limits vary depending on your location and household composition. For instance:
- Single workers without children can earn up to $36,749 in most provinces.
- Families can earn up to $48,093 before the benefit phases out.
You won’t qualify if:
- You were a full-time student for more than 13 weeks during the year (unless you had a dependent).
- You were incarcerated for 90 days or more.
- You have a diplomatic status or a similar tax exemption.
To be eligible for the disability supplement, you must qualify for the Disability Tax Credit (DTC) and have an approved Form T2201 filed with the CRA.
There is also a separate income threshold for the disability supplement, which may allow you to receive it even if your income is too high for the basic benefit.
How to Apply for the Canada Workers Benefit
No separate application is required for the Canada Workers Benefit. You simply need to claim it when filing your taxes.
If you’re filing online, the tax software will guide you through the process. For paper returns, you must complete Schedule 6 and submit it with your tax package.
For those eligible for the disability supplement, the process may vary:
- If one person in a couple qualifies for the DTC, they should claim both the basic CWB and the disability supplement.
- If both partners qualify, only one can claim the basic CWB, but both must submit their own Schedule 6 for the disability supplement.
The Advanced Canada Workers Benefit is handled automatically. If your tax return shows you qualify for the CWB and is filed before November 1 of the benefit period, the CRA will issue the advance payments.
How Much is the Canada Workers Benefit?
The amount you receive depends on several factors such as income, household composition, and your location. For the 2024 tax year, the maximum amounts for the CWB are as follows:
- Single individuals can receive up to $1,590, with the amount reducing once your income surpasses $26,149. It phases out entirely at $36,749.
- Families (including couples and single parents) can get up to $2,739, with the amount starting to reduce after $29,833 and phasing out entirely at $48,093.
If you’re eligible for the disability supplement, you could receive up to an additional $821:
- Single individuals: Payments start reducing at $36,748 and phase out completely at $42,222.
- Families: The reduction begins at $48,091 and ends at $59,038 if both partners are eligible. If only one partner qualifies, the benefit cuts off at $53,565.
The July 2025 advanced payments could be as follows:
- $265 for single individuals.
- $456.50 for couples or those with dependents.
- An additional $136.83 if you’re eligible for the disability supplement.
Is the Canada Workers Benefit Taxable?
The Canada Workers Benefit is not taxable. It is a refundable tax credit, meaning it either reduces your tax liability or provides a refund if you owe no taxes. Even if you receive advance payments, these are not considered taxable income.
Payment Dates for the Canada Workers Benefit
The first advance payment for the current benefit cycle is set for July 11, 2025. Two more advance payments are scheduled for:
- October 10, 2025
- January 12, 2026
The Canada Workers Benefit offers valuable financial support to low-income Canadians, especially for those facing income challenges.
With the advance payments, the benefit provides timely relief throughout the year. If you meet the eligibility criteria, the July 2025 payment could provide a much-needed boost to your finances.
FAQs
How do I know if I qualify for the Canada Workers Benefit?
To qualify, you need to be a Canadian resident, earn working income, and meet the income threshold for your location. You also must file a tax return for the previous year.
How are the payments distributed throughout the year?
The CWB is paid in three advance payments: one in July, one in October, and the final one in January.
Do I need to apply for the Advanced Canada Workers Benefit?
No, the advance payments are automatically issued if you qualify based on your most recent tax return. There is no need for a separate application.