This Canadian government benefit is set to increase this year

Canadian families can expect a bigger child benefit payment later this year.

Since 2018, the Canada Revenue Agency (CRA) has used a process called indexation to adjust benefit and credit payments to keep up with inflation and the rising cost of living.

This year, the indexation increase will be two per cent. That means some benefits and credit payments will increase by that amount. In comparison, it will be a lower hike than the 2.7 per cent increase in 2025.

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

The CRA will increase the payment amounts for certain income-tested benefits starting on July 1, 2026, which is the beginning of the new benefit year.

The Canada Child Benefit (CCB) is one of the tax-free monthly government payments that will increase in July.

Canadian families got a 2.7 per cent boost in child benefit payments in July 2025. Annual payments for children under six increased from $7,787 to $7,997, or $666 monthly. For those with children aged six to 17, this means an annual payment increase from $6,570 to $6,748, or $562 per month.

With the two per cent boost this year, the base benefit for a child under age six in 2026 will be $8,157, an increase of $160 from $7,997 in 2025. The base benefit for children aged six to 17 will be $6,883 next year, up $135 from $6,748 this year.

The Child Disability Benefit — a tax-free monthly payment for families who care for children under the age of 18 with a "severe and prolonged impairment in physical or mental functions" — will also increase in July.

According to the CRA, based on the two per cent indexation increase, the maximum benefit amount in 2026 will be $3,480, which is a $69 increase from $3,411 in 2025.

You can check if your family is eligible for Canada's child tax benefit by taking the government's eligibility test.

Check out the other government benefits and credit payments that are increasing this year.