Canadian parents can get an even bigger payout from the government in 2025

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Canadian parents can expect an increase in their Canada Child Benefit payments in 2025, though it won't be as sizeable as the last two years.

July always marks the start of the Canadian new benefit year. Since 2018, the government has used a process called indexation to increase benefit amounts to better support parents as the cost of living changes.

"This indexation means that the maximum benefit amounts and income thresholds at which benefits begin to be reduced are increased annually to keep pace with the rising cost of living, giving parents more support each month to help them provide for their children" an Employment and Social Development Canada (ESDC) spokesperson explains.

The maximum benefits and the income thresholds are indexed annually based on the Consumer Price Index (CPI).

In July 2024, child tax payments increased by 4.7 per cent, meaning the maximum benefit for children under six increased by $350, from $7,437 to $7,787. For children aged six to 17, it increased by $295, from $6,275 to $6,570.

Another increase can be expected in July 2025, when the next benefit year begins. However, it will not be as large as the increases in 2024 (4.7 per cent) or 2023 (6.3 per cent).

According to the Canada Revenue Agency, a 2.7 per cent tax bump awaits parents.

The annual base benefit for children under six will increase from $7,787 to $7,997 ($666 monthly) and from $6,570 to $6,748 ($562 monthly) for children aged six to 17 until June 2026.

The annual child disability benefit (CDB) amount also increases from $3,322 to $3,411 starting July 1, 2025.