“In all the bloggers and podcasts I read and listen to, I have never heard of any mention of CCB or Canadian child welfare.
This email comes from recent readers, which is a question that is about to become a common question for parents, so let’s dig into it!
What is CCB?
CCB stands for Canadian child welfare and is a tax-free benefit paid to parents under the age of 18.
A bit like the federal government’s saying “Thank you Contract servant Parents give us a future taxpayer. Here is some money to help you forget the money you are poor now. Good luck! ”
Who is it?
Canadian residents with children under the age of 18 who live with them, at least one parent needs to be one of the following tasks;
1) Canadian citizen
2) Permanent resident
3) Some temporary residents (check the CRA website for details) or
4) Persons who have registered or have the right to register under the Indian Act.
How did you get it?
Unlike most of the benefits of having to go through many bureaucratic gloves, you get this automatically when you complete your child’s birth registration form in the hospital.
If you are not giving birth in the hospital, you can also apply for it online via the CRA portal or using the RC66 Form.
The CRA then calculates the proceeds based on your tax return for the previous year and pays you monthly from July to June of the following year.
What is capture?
Free money for having children? Where do I register?
Well, before you escape all the contraceptives, here’s the capture:
CCB is economically tested. So, with words, the more money you make, the less benefits you get. (I know, the prompt is very small, micro violin)
As the child ages, the amount also drops. If you are divorced and only have the custody portion of time, the amount will be withdrawn. And, if you have other benefits, such as disability benefits, it will be withdrawn as well.
How does kickback work?
The easiest way to calculate your CCB is to use this CRA calculator, but since we like math on this blog, I’m going to stop the numbers behind the calculator just for fun:
In the 2024 tax year, you can get this if your AFNI (adjusted net income) is $37,487:
- Children under 6 years old should be $7,997 per year ($666.42 per month)
- Children $6,748 per year ($562.33 per month) 6-17
This seems to be a lot, especially in my experience, it costs about CAD 6,659.97 per year, or $555 per month to raise a child.
However, since your AFNI is calculated by adding together the income of all family members (excluding full-time students), most households cannot earn less than that amount.
So, in most cases, you need to consider how much the government will take back.
Tax Year 2024:
$37,487 – $81,222: Maximum amount will be reduced by 7%
Over $81,222, it will reduce $3,061, plus more than 3.2% of revenue by $81,222.
So that means on $235,457.81 AFNI, all your CCBs will be restored to their original state.
In other words, if your child is under 6 years old, if your family’s salary is less than $37,487/year, it will be up to $7,997 per year. If your family salary is $81,222 or less per year, you will get at least $4,936/year, if your family salary is above $81,222, then $4,936 per year until your family salary reaches $235,471.88, which is gone at this point.
example
Here is an example of $88,500 with an average household net income of $2025:
Suppose they have 1 child under 6 years of age, which is how much CCB is expected for the average family:
Reduce by 1 = ($81,222 – $37,487) x 7% = $3061.45
Reduce by 2 = ($88,500 – $81,222) x 3.2% = $232.90
CCB = Maximum Expenditure – Reduce 1 – Reduce 2 = $7,997 – $3,061.45 – $232.90 = $4702.65
So, $4702.65/year or $391.89/month.
The province with the most populous in Canada is Ontario, so we will take this as an example. Here, due to the CWELCC (Canada’s extensive early learning and child care) system, subsidized child care rate is $22 per day, so a family can expect to spend about $5,500 per child per year. This means that the CCB of the average family can cover 86% of childcare costs!
It’s so amazing!
But what if you are a firefighting family without parenting and don’t earn income outside of the 4% withdrawal amount?
I know there is a Fire family of 3 people with a portfolio of $1.25 million and an annual evacuation amount of $50,000.
They will get:
CCB = $7,997 – ($50,000 – $37,487) *0.07 = $7121.09/year or $593.42/month.
Given that I tracked the LMS for a fee of CAD 6,659.97/year or CAD 555/month, the tax-free CCB is also enough to cover its entire child’s expenses, even after the kickback!
Of course, you want to tax as much as possible to reduce AFNI after the fire. Here is a Wanderer’s post on how to do this.
Also, this is assuming there is only 1 child and you are married. If you have more than one child and/or divorce and share custody, the math will change. You can find all this information on the CRA website.
TLDR: If you have multiple children (up to 4) and your AFNI is at the lowest level, you can still get the maximum CCB for each child. But the claw back grows at subsequent salary levels, multiple children. I think they think that due to the economy of economies of scale, when you have more children, the fees for each child will drop unless you are at the lowest salary level.
If you have partial custody, it is based on the percentage of custody. If you have a child with a disability, you can subtract other disability benefits from the CCB.
in conclusion
CCB is only a great benefit for having a baby in Canada. This means that if you are a regular family and can get subsidized sites, the CCB can pay most of the daycare costs.
If you are a fire family who has no enthusiastic income after retirement and have no planned child fees, CCB can pay most, if not all, of the costs, even with rebates.
If you are a firefighting family who earns too much enthusiasm and gets zero CCB due to kickbacks? Your passionate income should be enough to cover your support costs and if it drops or disappears, you will receive a CCB.
What do you think? Canadian Reader, can CCB help you with the cost of raising children? If you plan to have family, would this number surprise you?
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