The Canada Disability Benefit (CDB) application process opens in June 2025, with the first payments being rolled out in July 2025. We want to provide you with some important information to make it easier for you to navigate the application process.
About the CDB
The CDB provides supplementary financial support to low-income Canadians with disabilities, between the ages of 18-64. The maximum amount is $2,400 per year, which means up to $200 a month. This amount is tied to inflation and will be adjusted every year to reflect changes in the cost of living. However, the total CDB amount is calculated based on net income. This means your amount can decrease if your net income (or your family’s adjusted net income) reaches a certain level.
The Application Process
Applications will be available through Service Canada starting in June 2025. More details are expected soon. We will update this section when those details are made available.
Who is Eligible
To access these funds, you must:
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- Be between the ages of 18 to 64
- Have a DTC certificate
- Meet certain income thresholds
- Be up to date on your income tax filings
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How income impacts the CDB
As mentioned above, the CDB amount is calculated based on net income. The government has included threshold amounts in their calculations to determine your benefit amount.
As single person, you would be eligible for the full amount of $2,400 a year if the total amount of your household net income is $23,000 or less.
If you receive employment income, you can exempt up to $10,000 a year. This means that if your total income is less than $23,000, after subtracting up to $10,000 of working income, you would still receive the full amount.
However, if your total income is more than $23,000 after subtracting up to $10,000 of working income, your benefit amount will be reduced by 20 cents for every extra dollar over the $23,000 threshold limit.
This means, if you earn $35,000 a year in employment income, your benefit calculation would look like this:
Total income ($35,000) minus the maximum exemption ($10,000) = $25,000
$25,000 minus the threshold amount ($23,000) = $2,000
2,000 times $0.20 (for every extra dollar) = $400
$2,400 (maximum benefit amount) minus $400 = $2,000
Your total CDB amount would be $2,000 for the year (or $166.66/a month for 12 months)
The Impact on ODSP and Other Ontario Social Benefits
A significant concern for many is whether receiving the CDB will affect eligibility for provincial programs like ODSP. There is good news in Ontario. Just recently, the government has confirmed that the CDB will be fully exempt from income calculations for ODSP, Ontario Works and the Assistance for Children with Severe Disabilities (ACSD). This means recipients can receive the CDB without any reduction in their provincial benefits.
Additionally, in Ontario, ODSP recipients can earn up to $1,000 from employment income without impacting their benefits.
Important Considerations
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- Legislation is underway to exempt the CDB from being considered taxable income, ensuring it doesn’t affect other income-tested benefits.
- Continued eligibility for the CDB requires annual tax filings to assess income levels and a DTC certificate is required.
- For the latest updates and application details, regularly check the official Canada Disability Benefit page.
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PooranLaw will continue to monitor developments related to the CDB and its application process. In the meantime, if you require legal assistance in determining how these rules may impact your organization, we encourage you to reach out to your regular PooranLaw lawyer, or any member of our team.
Note: This article provides general information only and does not constitute, and should not be relied upon as, legal advice or opinion. PooranLaw Professional Corporation holds the copyright to this article and its contents may not be copied or reproduced in any form, in whole or in part, without the express permission of PooranLaw Professional Corporation.
