Minister of Families, Children and Social Development has announced a slight increase of 1 per cent or roughly $5 per month in Canada Child Benefit to keep up with the rising cost of living.
Canada Child Benefit is a tax-free monthly payment based on income first introduced in 2016 paid to those raising children under the age of 18. The CCB is indexed so that the maximum benefit amounts and income thresholds at which benefits begin to be reduced are increased annually to keep pace with inflation.
The government today announced that for the 2021–2022 benefit year, the maximum annual benefit will be $6,833 per child under the age 6 and $5,765 per child aged 6 through 17.
Today marks five years since our government introduced the Canada Child Benefit. It has helped make life more affordable for families. It has lifted nearly 435,000 kids out of poverty. And today, it’s going up again – to make sure your kids can have the very best start in life. pic.twitter.com/laDETyI7Oj
— Justin Trudeau (@JustinTrudeau) July 20, 2021
The government in a news released provided the following examples of indexed payments for the 2021–2022 CCB benefit year:
- A single mother with two children aged 3 and 5, whose net income in 2020 was $32,000, will receive the maximum CCB amount of $13,666 tax-free for the 2021–2022 CCB benefit year.
- Two parents of a 5-year-old, whose family net income in 2020 was $105,000, will receive $3,078 tax-free for the 2021–2022 CCB benefit year.
- Two parents with three children aged 2, 4 and 8, with a family net income in 2020 of $70,000, will receive $12,283 tax-free for the 2021–2022 CCB benefit year.
In May, the government added CCB Young Child Supplement for families with children under the age of 6. Under the program, families with an income of less than $120,000 in 2019 and 2020 will receive up to $1,200 in tax-free payments for each eligible child. Families with an income of more than $120,000 in 2019 and 2020 will receive up to $600 in tax-free payments for each eligible child. The first installment was paid on May 28th. The rest of the payments will be issued on July 30 and October 29, 2021.
If you are new to Canada or had a newborn, and eligible for CCB, you can apply for benefits online.