It has been just over a year since the launch of the Canada Disability Benefit (CDB) in June 2025. The establishment of the CDB was a significant step in how Canada supports disabled people. Plan Institute has been closely monitoring the federal benefit’s impact on our community, while advocating for a more accessible CDB.
The federal government has recently finalized a new package of regulatory updates to streamline the CDB, reduce barriers, and ensure fairer calculations.
These updates will officially take legal effect on September 1, 2026
As we reflect on year one and look ahead to year two, here is what these changes mean for you, your family, or the people you support.
One-time supplemental amount of $150 to help with medical fees
To help with the out-of-pocket fees doctors often charge to fill out Form T221 for the Disability Tax Credit (DTC), the federal government is issuing a one-time, tax-free, lump-sum payment of $150 for people who have been approved for the CDB.
If you have received payments from the CDB, you should be eligible for the supplemental amount. The supplement can be automatically accessed by all recipients of the CDB, regardless of the amount you receive or whether your eligibility has lapsed.
People who have the DTC but have not accessed the CDB are not eligible for this support. Payments for the supplement will begin in September 2026.
Learn more about applying for the DTC here.
Apply six months early at age 17
Applicants no longer have to wait until their 18th birthday to navigate the application system. You can now submit your application up to six months before turning 18, ensuring your payments start seamlessly the month you reach adulthood.
Learn more about eligibility for the CDB here.
Spousal tax waiver
If your spouse or common-law partner cannot file their taxes due to exceptional circumstances and you are granted a waiver, Service Canada can calculate your CDB payment amount as a single person. The waiver can be granted under the following circumstances:
- your spouse or common-law partner is not a resident in Canada for the purposes of the Income Tax Act
- for reasons not caused by you or your cohabiting spouse or common-law partner, you are not living with your spouse or common-law partner
- your spouse or common-law partner has engaged in family violence as defined in the Divorce Act.
The spousal tax waiver can keep your payments from being reduced or delayed. Contact Service Canada for information on applying for this waiver in September.
Zero interest until a decision is made on your appeal
If Service Canada tells you that the payments you received are above the amount you’re eligible for, they usually ask for the money back. You can file a request for reconsideration if you disagree with their calculation. Effective on September 1, 2026, interest will not accrue on the amount you owe until a decision is made on your request for reconsideration.
Learn more about payments and reconsideration requests.
Protection from federal clawbacks
The federal government has updated the definition of “adjusted income” to align with the Income Tax Act. This change exempts CDB payments from being treated as income, protecting CDB recipients from clawbacks on other federal benefits like the Canada Child Benefit. While this is a welcome change, this does not protect CDB recipients from provincial clawbacks. Alberta is the only province clawing back the CDB.
