Canada Child Benefit Calculator 2025
Canada's only visual tax calculator. Calculate your Canada Child Benefit (CCB) payments based on your family income. See how much you'll receive monthly and annually for each child.
tl;dr
The Canada Child Benefit provides up to $7,787 per child under 6 and $6,570 per child aged 6-17 (2024-25 rates). Benefits reduce as family net income increases above $34,863, phasing out completely at higher income levels.
Essential Information
Start with the basics - add income sources and other details below
Tax Details
Add income sources, deductions, and credits
Why CCB Calculation Matters
The Canada Child Benefit is the largest federal support program for Canadian families with children, providing billions in tax-free benefits annually. For many families, CCB represents a significant portion of household income - potentially $7,787 per child under 6 and $6,570 per child aged 6-17 annually. Unlike the previous system, CCB is entirely tax-free, meaning you keep every dollar. However, CCB is income-tested, reducing as family net income increases. Understanding your CCB amount helps with family budgeting and financial planning. Many families don't realize how sensitive CCB is to income changes - even a moderate income increase can significantly reduce benefits. This creates important tax planning considerations: maximizing RRSP contributions to lower net income, strategic timing of income (like bonuses or investment sales), and understanding how spousal income affects benefits. CCB is based on previous year's income, so July 2025 payments are based on your 2024 tax return. This lag creates planning opportunities. Additionally, CCB affects eligibility for other programs like reduced-cost childcare and provincial benefits, making it a critical calculation for family finances.
How Canada Child Benefit Is Calculated
CCB calculation is complex, involving base amounts, income thresholds, and phase-out rates:
- 1. Base Benefit Amounts: For 2024-25, the maximum annual CCB is $7,787 for each child under 6 and $6,570 for each child aged 6-17. These amounts are indexed to inflation annually.
- 2. Family Net Income: CCB is based on adjusted family net income (AFNI) from your tax return (line 23600). For couples, this includes both spouses' income. It includes employment income, self-employment, pensions, dividends, capital gains (taxable portion), and most other income sources.
- 3. First Income Threshold: Benefits begin reducing when family income exceeds $34,863 (2024-25). Below this threshold, you receive the full base amount for each child.
- 4. Phase-Out Calculation for Families with One Child: Above $34,863, CCB reduces by 7% for one child under 6 (or 3.2% for one child 6-17) of income over the threshold. For example, at $50,000 income with one child under 6: Reduction = ($50,000 - $34,863) × 7% = $1,060. You'd receive $7,787 - $1,060 = $6,727 annually.
- 5. Phase-Out for Multiple Children: The reduction rate is higher for multiple children: 13.5% for two children, 19% for three, etc. This affects income over $34,863.
- 6. Second Income Threshold: At higher incomes ($75,537 for 2024-25), a second phase-out rate applies, further reducing benefits until they reach zero.
- 7. Monthly Payment: The annual CCB amount is divided by 12 and paid monthly (usually mid-month). Payments run from July to June, based on the previous year's tax return.
Real CCB Payment Examples
Lower-Income Family - $35,000 Income
Family income $35,000, two children (ages 3 and 8), both parents working, Ontario residents.
Maximum CCB: $7,787 (under 6) + $6,570 (6-17) = $14,357. Income $137 over threshold, minimal reduction. Annual CCB: approximately $14,339 ($1,195/month). This represents 41% of their after-tax income - a crucial support.
Middle-Income Family - $85,000 Income
Family income $85,000, three children (ages 2, 5, and 10), married couple, British Columbia residents.
Maximum CCB: $7,787 + $7,787 + $6,570 = $22,144. Income $50,137 over first threshold. Phase-out significantly reduces benefit. Annual CCB: approximately $9,120 ($760/month). Still substantial support despite higher income.
Higher-Income Family - $150,000 Income
Family income $150,000, one child (age 4), dual-income couple, Alberta residents.
Maximum CCB: $7,787. Income well above both thresholds. After full phase-out calculations, annual CCB: approximately $882 ($73.50/month). Benefits are minimal but not zero - worth claiming.
Common Questions
When do I need to apply for CCB?
You should apply as soon as your child is born or begins living with you. You can apply online through CRA My Account, by mail, or automatically when registering a birth in some provinces. Payments can be retroactive up to 10 months, but applying early ensures you don't miss payments.
Does CCB count as income or affect my taxes?
No! CCB is completely tax-free and doesn't need to be reported as income on your tax return. You keep every dollar. However, CCB eligibility is based on your net income, so your tax situation affects how much CCB you receive.
What happens if my income changes significantly during the year?
CCB is based on the previous year's income, so there's a built-in lag. If your income drops significantly (job loss, parental leave), you can request CRA recalculate your CCB based on estimated current-year income. If income increases significantly, your CCB won't decrease until the following July when it's recalculated.
Can I increase my CCB by contributing to my RRSP?
Yes! Since CCB is based on net income (after RRSP deductions), maximizing RRSP contributions reduces your net income and can increase your CCB. For families near phase-out thresholds, this can be very valuable. A $5,000 RRSP contribution by a family with two young children could increase CCB by $675 annually, plus generate tax savings.
What if I'm separated or share custody?
For shared custody (40%+ time with each parent), CCB can be split 50/50 between parents. Each parent would receive half the benefit amount. The primary caregiver (who primarily fulfills care responsibilities) typically receives CCB for non-shared custody situations.
Do I need to reapply every year?
No! As long as you file your tax return every year, CRA automatically recalculates your CCB based on your updated income. Your July payment reflects your most recently filed tax return. This is why filing taxes on time is critical - even if you have no tax owing.
Maximizing Your Canada Child Benefit
- ✓ File Taxes on Time: CCB is recalculated each July based on your tax return. File by April 30 to ensure uninterrupted payments.
- ✓ Maximize RRSP Contributions: RRSP contributions reduce your net income, potentially increasing your CCB. For families near phase-out thresholds, this can add hundreds to annual CCB payments.
- ✓ Consider Income Splitting: For couples with significantly different incomes, pension income splitting and other strategies can lower combined family net income.
- ✓ Time Capital Gains: Since capital gains increase your net income, consider timing large investment sales to minimize impact on CCB (sell in years when you're above phase-out anyway).
- ✓ Claim All Deductions: Child care expenses, moving expenses, and other deductions reduce net income and can increase CCB. Don't miss eligible deductions.
- ✓ Keep CRA Updated: Report changes in custody, marital status, or address immediately. Incorrect CCB payments must be repaid.
- ✓ Budget Annually, Not Monthly: CCB is recalculated every July. If your income increased significantly, expect lower payments starting in July. Budget accordingly to avoid surprises.
- ✓ Apply for Provincial Benefits: Most provinces offer additional child benefits. CCB often determines eligibility for these programs automatically.
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