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Canada Child Tax Benefit
Notes
• The Canada Child Tax Benefit (CCTB) is a tax-free monthly payment made to eligible
families to help them with the cost of raising children under the age of 18. In addition to
the basic benefit, the CCTB payment may include the National Child Benefit Supplement
(NCBS) and the Child Disability Benefit (CDB). The above table summarizes the total
payments a family may receive during the period of July 2013 to June 2014 based on
various circumstances. The amounts include both the basic CCTB and the NCBS.
• The basic CCTB for this period is $1,433 per child under the age of 18. This amount
increases by $100 for the third and each additional child. The benefit is phased out by 2%
(for one child) or by 4% (for two or more children) of adjusted family net income in excess
of $43,561.
• The NCBS for this period is $2,221 for the first child, $1,964 for the second child, and
$1,869 for the third and each additional child. The benefit is phased out by 12.2% (for one
child), 23% (for two children) or by 33.3% (for three or more children) of adjusted family
net income in excess of $25,356.
• The CDB provides a benefit of up to $2,626 per child under age 18 for children who have
a severe and prolonged mental or physical impairment. The benefit is phased out by 2%
(for one child) or by 4% (for two or more children) of adjusted family net income in excess
of the base amount, which is determined based on the number of children for whom you
receive the CCTB.
• The indexing factor used for all CCTB parameters is the same as that used for federal
income tax purposes (see the table “Federal and Provincial/Territorial Income Tax Rates and
Brackets for 2013 and 2014”).
• Entitlement is based on family net income as reported for tax purposes, with an
adjustment being made if necessary. Each July, the payments are adjusted for the previous
year’s reported family net income. Payments are made monthly to the person who is
primarily responsible for the care and upbringing of the child.
• Eligibility for the CCTB will end the month after a parent ceases to be a Canadian resident
or ceases to be the primary caregiver, or the child leaves home, reaches age 18, or dies.
• For residents of Alberta, the basic CCTB is replaced by a benefit based on age.
• Most provinces have additional programs and benefits available to aid lower-income
families with the cost of raising children under the age of 18.
• The Universal Child Care Benefit (UCCB), is paid to parents in monthly instalments of $100
per child under the age of six. The UCCB is not income tested, but is taxable in the hands
of the lower-income spouse/partner. However, it is not taken into consideration in the
determination of family net income for purposes of the CCTB.
Family
Net Income
One
Child
Two
Children
Three
Children
$25,536
$3,654
$7,051
$10,453
30,000
3,087
5,983
8,907
45,000
1,404
2,808
4,341
60,000
1,104
2,208
3,741
75,000
804
1,608
3,141
90,000
504
1,008
2,541
© 2013 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms
affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
Current as of September 30, 2013