In recent years, the cost of living in Canada has increased substantially, with housing, food, and other basic necessities becoming considerably less affordable for many households. For workers with lower pay, it is particularly challenging when wages remain the same, but costs continue to rise.
The good news is that there is a government benefit called the Canada Workers Benefit, which provides extra money to working people and families with lower incomes. This refundable tax credit provides direct financial support to eligible low-income individuals and families, helping them afford necessities.
What is the Canada Workers Benefit?
The Canada Workers Benefit (CWB) is a refundable tax credit that provides supplementary income for eligible low-income individuals and families who are working.
The Canada Workers Benefit has two main components:
- A basic amount available to qualifying recipients
- A disability supplement for those approved for the disability tax credit
The goal of the Canada Workers Benefit is to help offset the costs of living for low-income workers and encourage more people to enter the workforce. It provides a refundable tax credit that can reduce the tax you owe or increase your refund annually after filing taxes or in quarterly advance payments.
Who Qualifies for the Canada Workers Benefit?
To receive the Canada Workers Benefit, you must meet the following eligibility criteria:
Canadian Resident
You must have been a resident of Canada for the entire tax year you are claiming the CWB for.
Age Requirement
You must be 19 years of age or older as of December 31 of the tax year for which you are applying.
The age restriction does not apply if you have an eligible spouse or common-law partner or an eligible dependent living with you. In those cases, there is no minimum age requirement.
Income Thresholds
You must have a working income, and your net income must be below the income thresholds set for your particular province or territory of residence.
| Family Situation | Canada Except AB, QC, NU | Quebec | Nunavut | Alberta |
|---|---|---|---|---|
| Couple with kids | $48,093 | $39,969.72 | $65,595 | $48,918 |
| Couple without kids | $48,093 | $50,150.04 | $65,595 | $48,918 |
| Single with kids | $48,093 | $23,915.83 | $65,595 | $48,918 |
| Single without kids | $36,749 | $32,356.72 | $65,577 | $36,832 |
Work Status
You cannot have been enrolled as a full-time student at a designated educational institution for more than 13 weeks during the applicable tax year unless you had an eligible dependant during that time.
Incarceration
You cannot have been incarcerated in a prison or similar institution for 90 days or more during the tax year.
Tax-Exempt Status
You cannot have been exempt from paying Canadian income tax during the year as an officer or servant of another country, such as a diplomat.
Source: Canada workers benefit (CWB): Who is eligible – canada.ca
How Much Could I Get From the CWB?
The amount of Canada Workers Benefit (CWB) you can receive depends on your specific situation.
Key factors determining your CWB amount include:
- Province of residence
- Marital status
- Number of dependents
- Total working income
- Adjusted net income
- Eligibility for the disability supplement
This table outlines the maximum CWB amounts for the 2025 tax year (filed in 2025) and the income thresholds where CWB payments start phasing out and are reduced to zero:
| CWB Type | Maximum Amount | Payment Starts Phasing Out | No Payment Above |
|---|---|---|---|
| Basic – Single | $1,590 | $26,149 | $37,744 |
| Basic – Family | $2,739 | $29,833 | $49,393 |
| Disability Supplement – Single | $821 | $37,742 | $43,360 |
| Disability Supplement – Family | $821 | $49,392 | $55,009 (if one spouse is eligible) $60,629 (if both spouses are eligible) |
Source: Line 45300 – Canada workers benefit (CWB) – canada.ca
Use the government’s online calculator to estimate your personalized CWB amount based on your specific situation. Payment maximums and thresholds vary for residents of Alberta, Nunavut, and Quebec.
Who Qualifies as a Dependent?
When applying for the CWB, individuals with eligible dependents qualify for higher amounts. A dependent must meet these criteria:
- Be your or your spouse/common-law partner’s child
- Live with you on December 31 of the tax year
- Be under 19 years old
- Not eligible to claim the CWB themselves
Your child, foster child, or child of your spouse/partner can qualify if they are fully financially dependent on you.
If you share custody of a child, the rules for claiming a dependent for the CWB can be complex and depend on your specific arrangement. So it is best to get the right answer by checking the official CRA guide for Schedule 6 (Canada Workers Benefit) or speaking directly with the CRA or a tax expert.
How to Apply for the Canada Workers Benefit
Applying for the CWB is easy. Just follow four steps when filing your income taxes:
Step 1: File Your Taxes Annually
The CWB is administered through the tax system. You must file a T1 income tax return every year to receive the benefit. So you have to file on time to ensure your CWB amount is calculated correctly.
Most people need to file by April 30. If you or your spouse is self-employed, you have longer to file, until June 15.
But be aware: even with the later filing date, you must still pay any taxes you owe by the April 30 deadline.
Step 2: Complete Schedule 6
Fill out Form Schedule 6 – Canada Workers Benefit when filing your taxes. This form collects the information needed to determine your CWB eligibility and amount.
If using tax preparation software, it will guide you through the process. If filing a paper return, fill out Schedule 6 manually.
On the schedule, calculate your working income and adjusted family net income, and indicate whether you are applying for the disability supplement if eligible.
Step 3: Report Your CWB Amount
After completing Schedule 6, transfer the amount from line 42 to line 45300 on your income tax return.
This tells the CRA you are claiming the CWB, so they can determine the amount you are entitled to based on the information provided.
Step 4: Receive your CWB in your Tax Refund
The CWB amount you qualify for will either be included in your tax refund or applied against any balance owed.
So, make sure to file your taxes annually to receive the benefit you are eligible for.
When Do You Get the Canada Workers Benefit?
The CWB is paid annually after you file your tax return for the previous year. Here is the payment timing:
Annual Tax Refund
If you file your return early in the year, you will receive the full CWB amount as part of your income tax refund or applied against any tax owing.
When you get this payment depends on how long it takes the Canada Revenue Agency (CRA) to process your tax return.
- Paper Filing: For returns filed by mail, the goal is about eight weeks.
- Online Filing: The CRA’s goal for processing electronically filed returns is about two weeks. Your CWB will be included in your tax summary (called a Notice of Assessment) and any refund you get.
Please note: These are goals, not promises. Processing can take longer if your return is chosen for a more detailed review.
Quarterly Advance Payments
You can also access a portion of your estimated CWB amount in advance through multiple installments during the year if you were eligible for the CWB in the previous tax year.
The specific schedule and amounts are based on the CRA’s rules for the tax year, so you should always check the official CRA website for the most current information, as payment dates can change.
The current advance payments and schedules are:
- Up to 50% of your CWB from the previous year
- Payment in 3 equal installments during the year on July 12, October 12, and January 12.
To get these quarterly payments, you do not need to apply. If you were eligible for the CWB last year, the government (CRA) will automatically send you these payments. The only thing you need to do is file your taxes on time. The CRA must receive your tax return before November 1 of the benefit period.
So, the CWB provides an annual lump sum at tax time, plus automatic optional advance payments to supplement income year-round.
Source: Canada workers benefit (CWB) How much you can get – canada.ca
Managing and Tracking Your CWB Payments
You can conveniently manage and track your CWB payments using the CRA’s My Account online portal.
Here are four steps on how to use My Account for your CWB:
Step 1: Access CWB Details
Log in to My Account and navigate to the “Benefits and credits” tab. Click on the link for the Canada Workers Benefit.
Step 2: View Payment History
On this page, you can view your CWB payment history and your benefit statements or other related notices from the CRA.
Step 3: Confirm Your Eligibility
My Account shows whether you are eligible to continue receiving the CWB in the current and future tax years.
Step 4: See Payment Schedule
Your upcoming CWB payment schedule is also listed, so you know when to expect the funds.
Using My Account ensures you receive the full amount you are entitled to each year. Update your direct deposit and address details for convenience.
Explore more Canadian tax credits and support programs to help reduce your expenses and boost your financial well-being:
The bottom line
The Canada Workers Benefit offers substantial financial support each year for lower-income working Canadians. Understanding the eligibility criteria, how payment amounts are calculated, and how to easily apply annually using your tax return allows you to access this tax-free benefit.
Getting a portion of the CWB in quarterly installments provides more financial flexibility. Checking your eligibility every year and keeping your information current with the CRA helps maximize the amount you qualify for.
FAQs related to the Canada Workers Benefit
How do I apply for the Canada Workers Benefit?
You apply for the CWB on your income tax return by completing Schedule 6, "Canada Workers Benefit."
Most tax software will do this for you automatically. The CRA then determines if you're eligible when they process your return.
Where does the Canada Workers Benefit money come from?
The CWB is funded by the federal government through general tax revenues. The program is administered by the Canada Revenue Agency (CRA).
Why was the Canada Workers Benefit created?
The CWB was introduced to consolidate previous federal tax credits and benefits into one program that provides financial assistance to lower income workers.
When do I get my Canada Workers Benefit payment?
You get the Canada Workers Benefit (CWB) in two parts:
- Advance Payments: You automatically get half of your benefit split into three payments, sent around July, October, and January.
- Final Payment: The rest is calculated and paid out after you file your income tax return. It's either added to your refund or it reduces the tax you owe.
Can I receive the Canada Workers Benefit if I'm self-employed?
Yes, self-employed individuals are eligible for the CWB, provided their net income meets the thresholds based on family type.
How is the Canada Workers Benefit different from the GST/HST credit?
The GST credit is for all low-income individuals based on family size. The CWB specifically targets working people with modest incomes.
