Starting from July 2016, the old Canada tax benefit – including the Universal Child Care Benefit – will be cancelled, and the new Canada Child Benefit will start.
You don’t need to apply if you already get child benefits, but you and your spouse or common law partner have to file a 2015 tax return. If you are eligible, you will automatically start receiving the new Canada Child Benefit as of July 2016.
How much you get from this new Canada Child Benefit
The maximum payment for families with children under age six will be $6,400 per child. And the maximum payment for families with children between the ages of six and 17 will receive up to $5,400 annually. Families with annual income below $30,000 will receive the maximum payment.
| Household Income | New Child Benefit | Old Child Benefit |
|---|---|---|
| $15,000 | $6,400 | $5,825 |
| $45,000 | $5,380 | $3,350 |
| $90,000 | $3,245 | $2,125 |
| $140,000 | $1,695 | $1,500 |
| $200,000 | 0 | $1,425 |
| Household Income | New Child Benefit | Old Child Benefit |
|---|---|---|
| $15,000 | $11,800 | $10,175 |
| $45,000 | $9,850 | $5,900 |
| $90,000 | $5,875 | $3,300 |
| $140,000 | $3,125 | $2,050 |
| $200,000 | 0 | $1,950 |
You can use the simple calculator to calculate the new Canada Child Benefit you entitled to get.
There is also Ontario Child Benefit which provides a maximum payment of $1,356 per child per year.
The chart below estimates your monthly payments.
| Number of Children | $20,706 | $25,000 | $30,000 |
|---|---|---|---|
| 1 | $113 | $84.37 | $51.04 |
| 2 | $226 | $197.37 | $164.04 |
| 3 | $339 | $310.37 | $277.04 |
| 4 | $452 | $412.37 | 390.04 |
On July 20, you will get the first new Canada Child Benefit payment.
How to get the most of the new Canada Child Benefit
The amount of CCB you can get is determinate by your family net income. When your income decreases, the CCB increases. To be exact, your net income shown on line 236 of your tax return is used to calculate the new Canada Child Benefit. Tax deductions such as RRSP contribution, child cares expenses and union fees will reduce your net income and increase the CCB.
In simple words, buying RRSP can reduce your net income, thus increases your new Canada Child Benefit.
What are the old benefits cut
The new Canada Child Benefit replaces:
- The Universal Child Care Benefit (UCCB), the current taxable monthly payments of $160 per child under six and $60 for kids between 6 and 17.
- Canada Child Tax Benefit (CCTB)
- National Child Benefit-a supplemental child benefit for low income family
- The Family Tax Cut – also known as “income-splitting for families” with children under 18.
- Children’s Fitness Tax Credit and Children’s Arts Tax Credit. These credits are being phased out — cut in half in 2016, then eliminated entirely for 2017 and beyond.
In all, the new Canada Child Benefit is:
- simpler — most families will receive a single payment every month
- tax-free — families won’t have to pay taxes on payments received when they file their tax returns
- better-targeted to those who need it most — low and middle-income families get higher payments, and those with the highest incomes (generally over $150,000) receive less than under the previous system
- much more generous — families benefiting will see an average increase of almost $2,300 in the 2016-17 benefit year.