child tax credit

What is Child Tax Benefit in Canada?

The Canada Child Tax Benefit does not exist. In the past, it was a program that assisted eligible families in raising children by assuming a part of the cost.

As an umbrella program, it incorporates the National Child Benefit – a monthly benefit for families with low income, as well as the Child Disability Benefit, a monthly allowance for families caring for kids with chronic mental or physical disabilities.


The sole aim of the Child Tax Benefit was to eliminate child poverty at the turn of the new Millennium. It was eventually replaced by a more original model of the same program, which included the Working Income Supplement to capture low-income families adequately.

The new Child Tax Benefit was to last nineteen years before it was also replaced by the Canada Child Benefit in 2016.

Canada Child Benefit

The Canada Child Benefit phased out the Child Tax Benefit, providing a non-taxable payment for middle and low-income families. Families with an annual income exceeding C$150,000 get lesser than they would with the previous system.

The CCB payments had a ceiling limit of C$6496 per child annually below six years and a maximum of C$5481 each year for kids aged 6-17 as of 2018-2019.

The program solely depends on the income you earn with families earning less than $30,450, making up the first threshold. The second threshold starts at C$65,975. Ever since its inception, the CCB has mainly been responsible for lifting about 300,000 kids out of poverty.

Due to the increase in living cost, the benefit was bumped up in 2019 to C$6,639 for kids under the age of six and C$5602 for kids above six and below seventeen.

For more on the CCB, see here.

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