Canada Workers Benefit (CWB) 2025

2025 CWB Maximum Benefits

The CWB provides significant support to low-income workers. Here are the maximum amounts for the 2025 tax year:

Eligibility Requirements

To qualify for the CWB, you must meet ALL of the following criteria:

• Canadian resident – throughout the entire tax year
• Age requirement: Be 19+ on December 31, OR have a spouse/common-law partner, OR be a parent living with your child
• Working income – employment or self-employment income (not just EI or pensions)
• Student restriction: Not a full-time student for more than 13 weeks (unless you have an eligible dependant)
• Not incarcerated – for 90+ days during the year

Income Limits (2025)

For most provinces (Alberta, Quebec, and Nunavut have variations):

• Single: Net income under approximately $33,000
• Family: Family net income under approximately $43,000

How the CWB Is Calculated

The CWB calculation involves three stages: phase-in (benefit grows), maximum benefit, and phase-out (benefit decreases).

Phase-In (Benefit Grows)

The benefit increases as your working income rises:

• Single: 27% of working income over $3,000
• Family: 27% of working income over $3,000

Maximum Benefit Zone

You receive the maximum benefit when working income reaches:

• Single: Around $9,000 working income
• Family: Around $13,000 working income

Phase-Out (Benefit Decreases)

The benefit decreases as adjusted net income exceeds the threshold:

• Single: Reduced by 15% of income over ~$23,000
• Family: Reduced by 15% of family income over ~$26,000

Disability Supplement

If you're approved for the Disability Tax Credit (DTC), you may also receive the CWB Disability Supplement:

• Maximum: $784 for 2025
• Both spouses: Can claim if both have DTC approval
• Same structure: Phase-in/phase-out similar to basic CWB

Example Calculations

Example 1: Single Worker ($18,000 income)

Example 2: Single Worker with Higher Income ($28,000)

Advance Payments (ACWB)

You can receive up to 50% of your expected CWB in advance quarterly payments:

How to Apply for Advance Payments

• Complete Schedule 6 – with your tax return
• Check the box – for advance payments
• CRA calculates – and sends payments throughout the year

2025 ACWB Payment Schedule

• July 2025: First advance payment
• October 2025: Second payment
• January 2026: Third payment

Provincial Variations

Some provinces have modified CWB programs:

Alberta

Higher thresholds but same maximum benefits. Alberta's program recognizes higher cost of living.

Quebec

Quebec has its own program called the Work Premium (Prime au travail) instead of the federal CWB. Quebec residents claim this provincial credit instead.

Nunavut

Modified thresholds reflecting the significantly higher cost of living in Canada's north.

Second Earner Exemption

For couples, the lower-earning spouse can exclude up to $14,000 of their working income when calculating the family's adjusted net income for the phase-out. This helps families where both spouses work by allowing them to keep more of their CWB.

How to Claim the CWB

1. File your tax return – with all income reported
2. Complete Schedule 6 – Canada Workers Benefit form
3. CRA calculates automatically – your entitlement
4. Credit applied – to your refund or balance owing

CWB and Other Benefits

Impact on Other Credits

The CWB is separate from and doesn't reduce:

• GST/HST Credit – you can receive both
• Canada Child Benefit – separate programs
• Provincial benefits – stackable with most provincial credits

Interaction with EI

EI benefits count as income for phase-out purposes but NOT as "working income" for the phase-in calculation. This means EI doesn't help you qualify but can reduce your benefit.

Common CWB Questions

What counts as "working income"?

Employment income (before deductions), self-employment income, and certain taxable benefits. EI, pensions, and investment income do NOT count.

Can students claim CWB?

Only if enrolled full-time for 13 weeks or less during the year, OR if you have an eligible dependant.

Do I need to apply separately?

No separate application needed—just complete Schedule 6 with your tax return. CRA calculates automatically.

Tips to Maximize Your CWB

• File your taxes: You MUST file to receive the CWB—even if you have no tax owing
• Apply for DTC: The disability supplement adds up to $784 in additional benefits
• Consider advance payments: If your income is stable and predictable
• Contribute to RRSP: Reduces adjusted net income, potentially increasing your CWB