Canada Will Pay You $125,562 Per Child – Here’s How

The average cost of raising a child in Canada is a whopping $293,000 now! That’s almost the cost of a ferrari, or a quarter of a house in Vancouver! Now, imagine the government paying for almost half of that amount. Well, with the Canada Child Benefit, you could get up to $125,562 per child, all tax-free! Let me explain.

The Maximum CCB Payments Over 18 Years

If you qualify for the maximum Canada Child Benefit, here’s how it breaks down:

Age RangeMax Annual CCB (2023 income)Number of YearsTotal for Age Group
Under 6 years$7,7876$46,722
6 to 17 years$6,57012$78,840
Total18$125,562

For kids under 6, you can get up to $7,787 per year, which totals $46,722 over six years. For kids aged 6 to 17, the annual maximum is $6,570, adding up to $78,840 over 12 years. Altogether, that’s up to $125,562 over 18 years—pretty significant support to help cover the costs of raising kids!

After I crunched the numbers, I had to triple check them because I didn’t really believe it at first. I was blown away at just how much this adds up to over time. 

The crazy thing is, there’s no limit to how many children you can receive CCB for. If you have one child, that’s $125,562 over 18 years. With two children, it doubles to $251,124. If you have three kids, it’s a whopping $376,686.

And if you’re like the Ionce family in Abbotsford with 18 children, you could receive over $2.2 million in CCB payments! You can then use that money to train them to roster an entire NHL team.

Number of ChildrenTotal CCB Over 18 Years
1$125,562
2$251,124
3$376,686
18 (like the Ionce family)$2,260,116

According to a recent 2023 Stats Canada report, the average cost of raising a child from birth to age 17 is estimated at $293,000, or around $17,235 per year, for a two-parent, middle-income family. Families earning over $135,790 annually spend even more, averaging $403,910 per child. In comparison, families earning less than $83,013 spend about 52% less, averaging $238,190.

So if you’re a lower income family in Canada, it could cover over 50% of the entire cost of raising your child, which is incredible. I don’t think a lot of people are aware of how powerful this CCB is. Think of the CCB as an umbrella, shielding families from the rain of rising costs.

But not everyone qualifies for the max amount and I’ll show you how to calculate your benefit later in the video, but first, 

What exactly is the Canada Child Benefit (CCB)?

The CCB is a tax-free payment that helps families with kids under 18. It has two key features: The first is that It’s indexed to inflation, so the amount grows over time to keep up with rising costs—meaning future payments will likely be even higher.

The second is that the CCB is completely tax-free, so every dollar is yours to keep—no deductions or surprises.

What Can You Spend the CCB Money On?

You can use the CCB however you need! There are no restrictions, so whether it’s for food, housing, education—or finally upgrading that coffee maker that keeps breaking—it’s totally up to you. Your family, your rules!

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Next, I’ll show you how to qualify for the CCB. But if you want to learn more tax-saving strategies, check out my other video on the channel here, I linked to it in the description.

How to Qualify for the Canada Child Benefit (CCB)

The CCB is based on your Adjusted Family Net Income (AFNI). If you’re married or in a common-law relationship, you combine you and your spouse’s incomes (minus certain deductions)

As your net income increases, your CCB decreases. Families with lower incomes receive the full benefit, but higher-income families may see reduced payments or none at all.

How Much Can You Get?

The Canada Child Benefit (CCB) is designed to provide financial support to families, but the amount decreases as your income rises. The reduction happens in two stages based on your family’s  net income:

  • Income $36,502 to $79,087: Your CCB is reduced by 7% of any income over $36,502, with a maximum reduction of $2,981.
  • Income above $79,087: After the $2,981 reduction, an additional 3.2% is deducted from any income over $79,087.

Example: CCB Reduction for One Child Under 6

Adjusted Family Net Income (AFNI)Income Over $36,502ReductionAnnual BenefitMonthly Benefit
$35,000$0No reduction$7,787$649
$50,000$13,4987% of $13,498 = $945$7,787 – $945 = $6,842$570
$100,000$63,498$2,981 + 3.2% of $63,498 = $5,011$7,787 – $5,011 = $2,776$231
$130,000$93,498$2,981 + 3.2% of $93,498 = $5,973$7,787 – $5,973 = $1,814$151

Here’s a table that illustrates this point. As you can see, as your income increases, the benefit gradually decreases.

For example, families earning $35,000 or less receive the full benefit, which is $7,787 per year (or $649 per month for a child under 6). As income rises, the benefit begins to decrease. At $50,000 net incom, the annual benefit is reduced to about $6,842, with a monthly benefit of around $570.

For higher income levels, such as at $100,000 net income,, the annual benefit drops significantly to around $2,776, or $231 per month. By the time you reach an income of $130,000, the benefit reduces further to about $1,814 per year, or $151 per month

In short, as your income increases, the annual and monthly benefit decreases, and at very high-income levels, the benefit will get phased out completely.

This breakdown makes it easy to see how the CCB changes with different income levels. If you have more children, the calculations get a bit trickier, so for exact numbers, check out the CRA’s CCB calculator

It’s not the most user-friendly tool, but it gives the most accurate results. If you run into any issues, don’t hesitate to call the CRA—they’re usually pretty helpful!

How to Get Paid

Getting the Canada Child Benefit (CCB) is simple. Once you file your taxes, the CRA automatically calculates your payments—no extra application needed. As long as you and your partner (if applicable) file your taxes every year and your child is registered, the payments will keep coming. 

Filing your taxes also unlocks other benefits like the GST/HST credit and the Climate Action Incentive Payment (CAIP) for your family.

Want your payments faster? Set up direct deposit with the CRA so the money goes directly to your bank account, avoiding the wait for a cheque in the mail. CCB payment dates are typically between the 18th and 20th of every month, so be sure to check your account around that time.

Pro Tip: Keep your info up to date! If your family’s income changes due to job loss or a life event like marriage or the birth of a new baby, update the CRA right away. You could qualify for higher payments.

The same goes for changes in shared custody arrangements—let the CRA know so they can adjust your benefits, as they typically split payments 50/50 between parents in joint custody situations.

What’s the Catch? Why Did the Government Introduce the CCB?

The CCB might seem too good to be true, but it’s a key tool in reducing child poverty and supporting families across Canada. 

The impact is huge—since its launch, the CCB has helped lift 435,000 children out of poverty. In 2021 alone, it supported 1.6 million families and 2.1 million children under six. Beyond that, the CCB also attempts to tackle declining birth rates by easing the financial burden of raising kids and encouraging families to grow.

Making the most of the CCB is just one way to improve your financial outlook. Check out our services on this website, and book a free consultation when you’re ready!

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AUTHOR

Christopher Liew, CFA, CFP®

As the founder of Blueprint Financial, Christopher leads a team dedicated to creating custom plans that fit your unique goals. Together, they work to help you secure your financial future and enjoy the lifestyle that you’ve worked so hard for.
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