The Canada Child Benefit (CCB) program provides financial support to families in Canada to help with the costs of raising children. In 2023, the CCB received an increase, resulting in higher payments for eligible parents.
Next CCB Payment will be sent out on August 18, 2023. Here’s what you need to know about the increased Canada Child Benefit.
Increased Payments for 2023-24
Starting from July 20, 2023, eligible families will receive higher Canada Child Benefit payment.
The maximum tax-free CCB benefit for each child under the age of six has been raised to $7,437 per year ($619.75 per month).
For children aged six to 17, the maximum benefit is now $6,275 per year ($522.91 per month).
These payments are tax-free and aim to keep up with the cost of living.
The income thresholds determine the amount of benefit a family can receive. For the 2023-2024 benefit year, families with an adjusted family net income (AFNI) below $34,863 will be eligible for the maximum benefit amount.
As the AFNI increases above this threshold, the benefit amount gradually decreases. However, the income thresholds have been adjusted for the upcoming benefit year, potentially allowing more families to qualify for the maximum monthly benefit.
How is the Canada Child Benefit Calculated?
The CCB payment is determined by the adjusted family net income (AFNI) reported on the previous year’s tax return.
Families with a lower AFNI may qualify for the maximum monthly benefit, while the payment gradually decreases as AFNI increases. Families will benefit from increased payments starting from July 20, 2023.
Families having net income less than $34,863 can get maximum tax-free benefit which is given below:
- Children under the age of six: Up to $7,437 per year ($619.75 per month) per child.
- Children aged six to 17: Up to $6,275 per year ($529.91 per month) per child.
Gradual Reduction in Benefit Amount
The CCB amount gradually decreases as the adjusted family net income exceeds $34,863.
Families with an AFNI between $34,864 and $75,537 will experience a reduction in the benefit amount.
The reduction percentage and calculation vary based on the number of eligible children and income range.
For more clarity about how Canada Child Benefit (CCB) payments decrease, see the table below:
|Adjusted Family Net Income (AFNI) in 2022||CCB 1 Child Aged <6||CCB 1 Child Aged 6-17|
|Less than $34,863||$7,437 per year ($619.75 per month)||$6,275 per year ($529.91 per month)|
|$34,864 to $75,537||$7,436.93 to $4,589.82 per year ($619.74 to $382 per month)||$6,274.93 to $3,427.82 per year|
|Greater than $75,537||$7,436.93 – ($2,847 + 3.2% of your income greater than $75,537)||$6,274.93 – ($2,847 + 3.2% of your income greater than $75,537)|
As per CRA, the CCB is calculated as follows:
|Number of Eligible Children||Reduction for AFNI > $34,863 up to $75,537||Reduction for AFNI > $75,537|
|1||7% of AFNI greater than $34,863||$2,847 plus 3.2% of AFNI greater than $75,537|
|2||13.5% of AFNI greater than $34,863||$5,491 plus 5.7% of AFNI greater than $75,537|
|3||19% of AFNI greater than $34,863||$7,728 plus 8% of AFNI greater than $75,537|
|4 or more||23% of AFNI greater than $34,863||$9,355 plus 9.5% of AFNI greater than $75,537|
Please note that the Canada Child Benefit payment varies based on factors such as the number of children in the household, adjusted net family income, and existing benefits. Use the CRA calculator for accurate estimates.
Payment Dates for 2023
The Canada Child Benefit payments are made on specific dates throughout the year. For 2023, the payment dates are as follows:
- July 20, 2023
- August 18, 2023
- September 20, 2023
- October 20, 2023
- November 20, 2023
- December 13, 2023
What is the Canada Child Benefit (CCB)?
The CCB is a tax-free monthly payment offered by the Canada Revenue Agency (CRA) to help families cover the expenses associated with raising children.
It is an essential program designed to support parents and caregivers across Canada.
Eligibility for the Canada Child Benefit
To be eligible for the CCB, you need to meet the following criteria:
Guardianship: You should be primarily responsible for the care and upbringing of a child under the age of 18.
Citizenship or Immigration Status: You must be one of the following:
- A Canadian citizen
- A permanent resident
- A protected person
- A temporary resident with at least 18 months of residency in Canada and a valid permit in the 19th month (except for permits that state “does not confer status” or “does not confer temporary resident status“).
- Registered or entitled to be registered under the Indian Act.
The increased Canada Child Benefit for 2023 brings good news for parents in Canada. With higher payments and adjusted income thresholds, more families have the opportunity to receive the maximum monthly benefit.
The Canada Child Benefit is designed to provide support to families, and the updated amounts aim to alleviate the financial burden of raising children.
For further information and to check eligibility, visit the Canada Revenue Agency (CRA) website or contact them directly.