The Canada Workers Benefit (CWB) returns with its first advance payment for the 2025 benefit year. This July 2025 instalment may be higher than usual, following inflation-based updates from the Canada Revenue Agency (CRA).
Each July, the CRA recalculates income-tested benefits using data from the previous year’s tax return. If your income or family status changed in 2024, this could positively affect your eligibility and payment amount. In 2025, the CWB has received a larger-than-average increase, exceeding adjustments seen in many other federal benefits.
What Is the Canada Workers Benefit (CWB)?
The CWB is a refundable tax credit aimed at supporting low-income Canadians who are employed but continue to face financial challenges. It provides assistance through two key components:
- A basic amount for qualifying workers.
- A disability supplement for those approved under the Disability Tax Credit (DTC).
This benefit encourages labour force participation while easing the financial burden for working individuals and families.
Understanding the Advanced Canada Workers Benefit (ACWB)
To help Canadians with cash flow throughout the year, the Advanced Canada Workers Benefit (ACWB) enables eligible recipients to access up to 50% of their annual CWB early. This amount is divided into three advance payments.
If you’re eligible for the disability top-up, 50% of that amount is also included in your advance payments.
There is no separate application required. If you file your tax return before November 1 and meet eligibility criteria, payments are issued automatically.
CWB Eligibility Criteria
To qualify for the Canada Workers Benefit, you must:
- Be a resident of Canada for the entire year.
- Be 19 years or older by December 31, or live with a spouse/partner/child.
- Have working income and family net income below your province or territory’s limit.
Income Thresholds:
- Single individuals: Up to $36,749
- Families: Up to $48,093 (varies by region)
You do NOT qualify if:
- You were a full-time student for over 13 weeks (without dependents).
- You were incarcerated for 90+ days.
- You are exempt from Canadian taxes due to diplomatic or similar status.
To receive the disability supplement, you must:
- Have an approved Form T2201.
- Be eligible for the Disability Tax Credit (DTC).
Even if your income disqualifies you from the basic benefit, you may still be eligible for the disability supplement.
How to Apply for the CWB
You do not need to apply separately for the Canada Workers Benefit.
- Online filers: Tax software will guide you automatically.
- Paper filers: Complete Schedule 6 and attach it to your tax return.
For the Disability Supplement:
- If only one spouse qualifies for the DTC, they should claim both the basic amount and the disability supplement.
- If both spouses qualify, each must complete Schedule 6 for the supplement, but only one can claim the basic amount.
If your return includes line 45300 and is submitted on time, advance payments are issued automatically.
How Much Can You Receive from the CWB in 2025?
Your benefit amount depends on your income, family size, and province.
Maximum 2024 Federal CWB Amounts:
| Category | Maximum Benefit | Phase-Out Starts | Fully Phased Out At |
|---|---|---|---|
| Single individuals | Up to $1,590 | $26,149 | $36,749 |
| Families | Up to $2,739 | $29,833 | $48,093 |
| Disability Supplement | Up to $821 | $36,748 (single) | $42,222 (single) |
| $48,091 (family) | $53,565 / $59,038 |
Note: Family thresholds vary depending on how many adults qualify.
July 2025 Advance Canada Workers Benefit Payment
The first ACWB payment for the new benefit year will be distributed on Friday, July 11, 2025. Based on CRA’s updated calculations, the estimated July 2025 payments are:
- $265 for single individuals.
- $456.50 for eligible families.
- $136.83 per adult for those receiving the disability top-up.
- Maximum total: Up to $730.17 per couple if both qualify for basic and disability components.
Residents of Quebec, Alberta, and Nunavut may have different maximums. Use the CRA online calculator for personalized estimates.
Is the Canada Workers Benefit Taxable?
No. The CWB is non-taxable. As a refundable tax credit, it either:
- Reduces your tax bill, or
- Provides a refund if you owe no taxes.
Even the advance payments you receive are not considered taxable income.
2025 CWB Advance Payment Schedule
The advance payments for the 2025 benefit year will be made on the following dates:
| Payment Cycle | Payment Date |
|---|---|
| 1st Payment | July 11, 2025 |
| 2nd Payment | October 10, 2025 |
| 3rd Payment | January 12, 2026 |
Any remaining balance is reconciled when you file your taxes.
Conclusion
The Canada Workers Benefit continues to be a vital financial support for low-income working Canadians, offering both regular and advance payments. With a notable increase in 2025, eligible individuals and families could receive higher payouts than in previous years. Understanding your eligibility, payment schedule, and maximum entitlements ensures you can fully benefit from this federal initiative. Be sure to file your taxes early and accurately to take advantage of this program.
FAQs
1. Who qualifies for the disability supplement under the CWB?
To qualify, you must have an approved Form T2201 and be eligible for the Disability Tax Credit (DTC). Even if your income disqualifies you from the basic benefit, you might still receive the supplement.
2. Do I need to apply separately for the Canada Workers Benefit?
No. The CWB is claimed directly on your income tax return. If you file on time and meet eligibility, advance payments are automatically processed.
3. Are advance payments taxable?
No. Advance payments from the CWB are non-taxable. They are considered part of your refundable tax credit and do not increase your taxable income.
4. How can I estimate my benefit amount?
You can use the CRA’s online benefits calculator to receive a personalized estimate based on your income, family size, and province of residence.
5. What happens if my income changes during the year?
Since benefits are recalculated annually based on your previous year’s tax return, income changes in 2024 may affect your 2025 benefit amount, either increasing or decreasing your entitlement.