New Canada CDB Payment Up To $200 Arrives October 16

Canada launches a new federal disability benefit this year. On October 16, 2025, eligible low-income Canadians with disabilities will begin receiving up to $200 per month. This money aims to ease daily costs for people living with disabilities.

What Is the CDB?
The Canada Disability Benefit (CDB) gives financial help to adults aged 18 to 64 with disabilities. It began in mid-2025. The program’s goal is to provide a steady monthly income for those who need support. It does not replace other supports but adds to them.

Who Qualifies?
To receive the CDB, you must meet all these:

• Be aged 18 to 64.
  
• Be approved for the Disability Tax Credit (DTC).
  
• File your 2024 income tax return (you and your partner, if applicable).
  
• Be a Canadian resident for tax purposes (citizen, permanent resident, protected person, registered under Indian Act, or long-term temporary resident).
  

If you are 65 or older, you may get retroactive payments up to 24 months, but not before July 2025.

About the DTC
Getting the DTC is key. It confirms a person has a long-term physical or mental condition that limits daily life. A medical professional must certify that the limitation lasts at least 12 months. It must restrict basic functions, such as walking, seeing, hearing, or speaking, most of the time—at least 90%.

To apply, you submit Form T2201 with your health provider’s support. Processing can take weeks, so start early.

How to Apply for CDB
You can apply in three ways:

1. Online, via the Service Canada portal.
   
2. In person, at a Service Canada centre.
   
3. By phone, for those needing help due to access or tech issues.
   

You can also use community-based services that support people in filling out forms or navigating the process.

Service Canada offers an estimator tool. You can enter your income, family status, and disability details to see what you might receive.

How Much You’ll Get
The maximum benefit is $200 per month (or $2,400 per year). The actual amount depends on your adjusted family net income (AFNI). That includes your income plus your spouse’s (if any). It also allows for work income exemptions so that earning some money doesn’t cut your benefit immediately.

As your income rises above certain thresholds, your benefit gradually reduces.

Example Cases

• A single person earns $16,000 yearly: He qualifies for the full $200 monthly.
  
• A couple with one eligible person and a household income of $31,000 (after exemptions): The eligible person still receives the full $200.
  
• Two partners both eligible: Each may get a reduced amount depending on combined income, perhaps $137.50 each in one scenario.
  

Protection Against Inflation
Starting July 2026, the CDB will increase with inflation. This step ensures that benefits keep pace with rising costs each year. The government plans to review the program annually and adjust the rules if needed.

Getting Ready for October 16
If you already qualify, you don’t need to reapply. The October 16 payment goes automatically to your same direct deposit account. If your application is pending, check your status in your Service Canada account or call the CDB hotline.

This new program offers more than just money. It aims to support dignity and independence for Canadians with disabilities. It helps pay for essentials—like mobility aids, medication, home adaptations, or transport. On October 16, many will see how this benefit can lift daily life.