Payments

Your income

Your benefit amount depends mainly on your income. There are two types of income that will be considered in the calculations:

• Adjusted income includes your income and the income of your cohabiting spouse or common-law partner, if applicable. It includes all sources of income that you and your cohabiting spouse or common-law partner, if applicable, report on your Income Tax and Benefit Return to the Canada Revenue Agency (CRA). It excludes the Registered Disability Savings Plan (RDSP) payments and Universal Child Care Benefit (UCCB) payments (which are taxable but excluded from adjusted income).

• Working income includes income from employment, self-employment or taxable scholarships. It is included in adjusted income.

Your benefit amount is also determined by your family structure:

• Single means the person receiving the benefit has no cohabitating spouse or common-law partner living with them.

• Couple means the person receiving the benefit has a cohabitating spouse or common-law partner living with them. Couples have higher income thresholds because they share living expenses and costs.

Income from the previous tax year

Your benefit amount will be based on your income from the previous year. This may include the income of your cohabiting spouse or common-law partner, if applicable. For example, if payments start in July 2025, the benefit amount will be based on your income reported in your 2024 tax return. Your benefit amount will be recalculated every July as new income information becomes available through the income tax system. Your income from the previous tax year is also used to calculate your income threshold, working income exemption, and reduction rates.

Income threshold

The income threshold is the maximum amount of income you can have before your benefit amount is reduced. The income threshold is:

• $23,000 for a single person

• $32,500 for a couple. The income threshold applies regardless of whether one person or both people qualify for the CDB.

See reduction rates below for how much your CDB will be reduced if you earn more than the income threshold. 

Working income exemption

Working income exemption is the amount of your working income that is excluded when calculating your benefit amount. This includes income from from employment, self-employment or taxable scholarships. The working income exemption is:

• $10,000 for a single person
  If your working income is $10,000 or more each year, the first $10,000 will not count when calculating your benefit amount. If your working income is at least $10,000, your income threshold increases from $23,000 to $33,000.

• $14,000 for a couple
  If your combined working income is $14,000 or more each year, the first $14,000 will not count when calculating your benefit amount. If your combined working income is at least $14,000, your income threshold increases from $32,500 to $46,500. The working income exemption applies regardless of whether one person or both people qualify for the CDB.

Reduction rates

If your income is above the threshold, your benefit amount will decrease based on the following rates:

• 20% for a single person
  If your income exceeds the threshold ($23,000 or $33,000 annually with the maximum working income exemption), your benefit amount will be reduced by 20 cents for every dollar you earn over that amount, up to the phase out amount.

• 20% for a couple, if only one person is eligible for the CDB
  If your combined income exceeds the threshold ($32,500 or $46,500 annually with the maximum working income exemption), your benefit will be reduced by 20 cents for every dollar of combined income over that amount, up to the phase out amount.

• 10% for a couple where both people are eligible for the CDB
  If your combined income exceeds the threshold ($32,500 or $46,500 annually with the maximum working income exemption), each person’s benefit amount will be reduced by 10 cents for every dollar of combined income over that amount, up to the phase out amount.

Phase out income

You will not receive the CDB if your income is above a certain limit, this is called the phase out income. This also depends on whether you are single or part of a couple, and the working income exemption. 

• $35,000 for a single person
  You will not receive the CDB if your annual income is $35,000 or more. If your working income is at least $10,000, the limit increases to $45,000.

• $44,500 for a couple, if only one person is eligible for the CDB

  You will not receive the CDB if your annual income is $44,500 or more. If your working income is at least $14,000, the limit increases to $58,500 for your combined income.

• $56,500 for a couple where both people are eligible for the CDB

  You will not receive the CDB if your annual income is $56,500 or more. If your working income is at least $14,000, the limit increases to $70,500 for your combined income.