The Canada Workers Benefit (CWB) is a refundable tax credit — you get it even with no taxes owing. Worth up to $1,633 for singles and $2,813 for families. Requires working income, age 19+, and net income below roughly $37,742 (single) or $49,393 (family). Claim on Schedule 6. Advance payments are issued in January, July, and October automatically if you qualified last year.
What Is the Canada Workers Benefit?
The Canada Workers Benefit (CWB) is a federal refundable tax credit designed to support low-income Canadians who work. It replaced the Working Income Tax Benefit (WITB) in 2019 and has been significantly expanded since. A refundable credit means that if the credit exceeds your tax owing, the difference is paid to you as a cash refund — making this a real benefit, not just a tax reduction.
The CWB has two components:
- Basic amount: Available to all eligible workers based on working income and net income
- Disability supplement: An additional amount for individuals who have an approved Disability Tax Credit (DTC) certificate
CWB Amounts for 2025
| Situation | Phase-In Starts | Maximum Benefit | Phase-Out Starts | Fully Phased Out |
|---|---|---|---|---|
| Single individual | $3,000 | $1,633 | $26,855 | ~$37,742 |
| Family (couple or single parent) | $3,000 | $2,813 | $30,639 | ~$49,393 |
| Disability supplement (individual) | $1,150 | $843 | $37,742 | ~$44,362 |
| Disability supplement (family) | $1,150 | $843 | $49,393 | ~$55,013 |
The phase-in rate for the basic amount is 27% — meaning you gain $0.27 of CWB for every additional dollar of working income earned above $3,000, until you reach the maximum. The phase-out rate is approximately 15% of net income above the phase-out threshold.
Working income of $22,000 falls in the maximum benefit range for a single individual. This person would receive the full $1,633 CWB. If they also have a DTC approval, they'd additionally receive up to $843 in disability supplement, for a total of $2,476 — paid as a refund or through advance payments.
Who Qualifies for the CWB?
To be eligible for the Canada Workers Benefit in 2025, you must:
- Be a Canadian resident throughout the year
- Be 19 years of age or older as of December 31, 2025 — or have a spouse, common-law partner, or dependent child (which allows those under 19 to qualify)
- Have working income (employment income, tips, self-employment net income)
- Have net income below the phase-out threshold for your family situation
- Not have been a full-time student for more than 13 weeks in the year, unless you have a dependent child
- Not have been confined to a prison or similar institution for 90 or more days during the year
Note that investment income, RRSP withdrawals, EI payments, and social assistance do not count as "working income" for the CWB. However, they do count toward "net income" for the phase-out calculation.
If you were a full-time post-secondary student for more than 13 weeks during 2025, you are generally not eligible for the CWB unless you had a dependent child. A student who worked part-time throughout the year but attended school full-time for more than 13 weeks would not qualify. Part-time students are generally eligible as long as the other conditions are met.
What Counts as "Working Income"?
Working income for the CWB includes:
- Employment income (T4 box 14)
- Tips and gratuities included in your employment income
- Self-employment net income (net of business expenses, on your T2125)
- Amounts received under a wage loss replacement plan where premiums were paid by you
Not counted as working income:
- Employment Insurance (EI) benefits
- Workers' compensation
- Social assistance or welfare payments
- RRSP/RRIF withdrawals
- Investment income, dividends, capital gains
- Pension income (CPP, OAS, employer pensions)
Advance Payments: Getting the CWB Throughout the Year
Since the 2023 tax year, CRA automatically issues CWB advance payments to eligible Canadians in three installments:
- January (paid in mid-January)
- July (paid in mid-July)
- October (paid in mid-October)
The advance payments total 50% of your prior year's CWB, split across the three payments. The remaining 50% is reconciled when you file your tax return — if your actual entitlement is higher, you get more; if it's lower, the excess advance is deducted from your refund or added to your balance owing.
If you received the CWB for the 2024 tax year, CRA will automatically start advance payments for 2025 based on that prior year's amount. If 2025 is your first year qualifying (you didn't claim in 2024), you can apply for advance payments by filing Form RC201 — Canada Workers Benefit Advance Payments Application.
Advance payments are based on your prior year's income. If your income rises significantly in 2025, you may receive advance payments you're not entitled to. These must be repaid when you file your 2025 return. If you expect higher income in 2025 (new job, promotion, side income), consider contacting CRA to reduce or suspend your advance payments to avoid an unexpected balance owing.
The Disability Supplement
Workers who have an approved Disability Tax Credit (DTC) certificate can claim the CWB disability supplement in addition to the basic amount. The supplement is worth up to $843 for both individuals and families.
Key points about the disability supplement:
- You must have an active DTC certificate (approved T2201 on file with CRA)
- It phases in separately starting at $1,150 of working income
- For individuals, it fully phases out at approximately $44,362 of net income
- For families, it phases out at approximately $55,013 of net family net income
- It is claimed on the same Schedule 6 as the basic CWB
How to Claim the CWB on Your Tax Return
Claim the Canada Workers Benefit using Schedule 6 — Canada Workers Benefit. Most tax software prompts you to complete Schedule 6 automatically when it detects you may be eligible based on your income. Here's what Schedule 6 calculates:
- Your working income
- Your adjusted net income (net income for phase-out purposes)
- Your basic CWB amount based on the phase-in and phase-out
- Your disability supplement (if applicable)
- Any advance payments already received (deducted from the amount you get at filing)
The net CWB amount flows to line 45300 of your T1 return, reducing your tax owing. If it exceeds your tax owing, the excess is issued as a refund.
Provincial Supplements: Ontario's Addition
Ontario has its own provincial supplement to the CWB, which provides additional support to eligible low-income Ontario workers. The Ontario supplement is calculated separately on your Ontario provincial return and is included in your Ontario tax return software automatically. It provides a modest additional benefit on top of the federal CWB.
Why So Many Eligible Workers Miss the CWB
Despite being specifically designed for low-income workers, the CWB has significant under-claiming rates. Common reasons:
- Not knowing it exists: The CWB replaced the WITB in 2019 and has been little publicized. Many workers — especially those filing simple returns — don't know to look for it.
- Thinking you don't qualify: Workers often assume that if they have a job and earn income, they don't qualify for "low income" programs. But at $22,000 or $28,000 of income, you absolutely qualify and the CWB is a meaningful amount.
- Not filing a return: Some very-low-income Canadians don't file a tax return because they assume they owe nothing. But not filing means not claiming the CWB (which is refundable — you receive cash even with zero tax owing).
- Students not realizing they can qualify: Part-time students are eligible. Only full-time students (13+ weeks) without children are excluded.
If you earned any working income in 2025 — even part-time, even a few thousand dollars — file a tax return. You may qualify for the CWB, GST/HST Credit, Ontario Trillium Benefit, and other refundable credits. Together these can add up to thousands of dollars in cash benefits you'd otherwise leave on the table.
CWB vs. Other Low-Income Benefits: How They Interact
The CWB is designed to work alongside, not replace, other benefits:
- GST/HST Credit: Both are independently calculated. Receiving the CWB does not reduce your GST credit. CWB advance payments are not counted as income for GST credit purposes.
- Canada Child Benefit (CCB): CWB is separate from CCB. Families can receive both. The CWB amount is not income for CCB calculation purposes.
- Ontario Trillium Benefit: Separate benefit. CWB does not affect OTB eligibility or amounts.
- Employment Insurance: EI payments do not count as working income for CWB purposes, so receiving EI during part of the year can reduce your CWB entitlement if it substitutes for employment income.
Find out if you qualify for the Canada Workers Benefit
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Frequently Asked Questions
How much is the Canada Workers Benefit in 2025?
For 2025, the CWB basic amount is up to $1,633 for single individuals and up to $2,813 for families (couples or single parents with children). There is also a disability supplement of up to $843 for individuals with an approved Disability Tax Credit certificate. The basic amount phases in starting at $3,000 of working income and fully phases out at approximately $37,742 for singles and $49,393 for families.
Who qualifies for the Canada Workers Benefit?
To qualify, you must be a Canadian resident aged 19 or older at December 31 (or have a spouse, common-law partner, or dependent child); have working income (employment or self-employment net income); have net income below the applicable phase-out threshold; not be a full-time student for more than 13 weeks (unless you have a dependent child); and not have been imprisoned for 90+ days during the year.
Can I receive the Canada Workers Benefit as advance payments?
Yes. CRA automatically issues advance payments to individuals who received the CWB in the previous tax year. Payments go out in January, July, and October — totaling 50% of your prior year's CWB. The remaining 50% is settled when you file your tax return. If you're newly eligible, apply using Form RC201 to receive advance payments without waiting until you file.
Is the Canada Workers Benefit taxable?
No. The CWB is a refundable tax credit, not taxable income. It will not affect your eligibility for other income-tested benefits. CWB payments (whether received on filing or as advance payments) are not included in your income for any purpose.
What is the disability supplement of the CWB?
The CWB disability supplement is an additional refundable credit of up to $843 for individuals who have an approved Disability Tax Credit (DTC) certificate on file with CRA. It has its own phase-in starting at $1,150 of working income and phases out at higher income levels ($44,362 for singles, $55,013 for families). Claim it on Schedule 6 of your T1 return along with the basic CWB.