A Guide to Canada Workers Benefit (CWB)

The Canada Workers Benefit (CWB) helps low-income workers keep more of what they earn through refundable tax credits and advance payments. It’s designed to ease financial pressure and reward steady employment.

In this article, you’ll find clear information on what the CWB is, the types of payments available, who qualifies, and how much support you might receive. You’ll also learn how to apply and when payments are issued in 2025.

What Is the Canada Workers Benefit (CWB)?

The Canada Workers Benefit (CWB) is a refundable tax credit offered by the federal government to help people earning a modest income through work. It replaced the Working Income Tax Benefit in 2019, expanding eligibility and increasing the financial support available to workers and families.

At its core, the program rewards employment by helping low-wage earners keep more of their income. It’s meant for individuals and families who are part of the workforce but still face financial pressure from rising living costs or limited work hours.

The benefit has two parts. The basic amount is available to qualifying workers, while the disability supplement adds extra assistance for anyone approved for the Disability Tax Credit (DTC). Together, these amounts either reduce your taxes or increase your refund.

Claiming the CWB doesn’t require a separate form or application. When you file your tax return, you simply complete Schedule 6, and the Canada Revenue Agency (CRA) calculates your eligibility and benefit amount.

Types of CWB Payments

The Canada Workers Benefit can reach you in two ways—through advance payments during the year or a final payment once you file your taxes. Both come from the CRA, but the timing differs.

Advance Payments (ACWB)

The Advanced Canada Workers Benefit (ACWB) allows eligible workers to receive up to half of their yearly CWB in advance. These payments are automatic if you qualified in the previous tax year, so there’s no need to reapply.

Instead of waiting until tax season, you receive portions of the benefit throughout the year, helping to ease short-term financial needs. Payments are typically made quarterly, and when you file your next return, the CRA reconciles everything—making any necessary adjustments based on your actual income.

Final Payment at Tax Time

Once your tax return is filed, the CRA determines your total CWB amount for the year. Any advance payments already received are deducted from that total. You’ll either get the remaining balance or see it adjusted on your return if you were overpaid.

This final payment reflects your true income and household details for the year, so the support you receive accurately matches your circumstances.

Eligibility Criteria

To qualify for the Canada Workers Benefit, you must meet specific conditions related to your age, income, and work status. The CWB is designed for people who earn income from employment or self-employment but still fall within a lower income range.

You are eligible for the basic amount if all of the following apply:

• You earned working income during the year (from employment or self-employment).
• You were a resident of Canada throughout the tax year.
• You were 19 years of age or older on December 31 of the tax year, unless you lived with a spouse, common-law partner, or child.
• You were not enrolled full-time in a designated educational institution for more than 13 weeks during the year (some exceptions apply).
• You were not confined to a prison or similar institution for 90 days or more.

In addition, your adjusted net income must fall below certain limits, which vary depending on your province or territory, marital status, and whether you qualify for the disability supplement.

For 2024 (the base for 2025 advance payments):

• Single individuals: CWB begins to phase out once your adjusted net income exceeds $24,781 and is reduced to zero at $36,749.
• Families: The phase-out begins at $28,494 and ends at $48,093.

If you qualify for the disability supplement, you must also be approved for the Disability Tax Credit (DTC).

How Much Is CWB

The total Canada Workers Benefit amount depends on your income, marital status, and eligibility for the disability supplement. The government adjusts these figures annually to reflect inflation.

Here’s a look at the 2024 benefit year (used for 2025 advance payments):

Example

If you’re a single worker earning $30,000 in 2024, you’d receive only part of the maximum amount since your income is above the phase-out threshold. The CRA automatically calculates the exact figure when you file your tax return.

For 2025 advance payments, the government has slightly raised the benefit amounts:

• Up to $1,633 for single workers
• Up to $2,813 for families
• Up to $843 for those eligible for the disability supplement

How to Apply for the CWB

You don’t need a separate application for the Canada Workers Benefit. The process happens automatically when you file your annual income tax return with the Canada Revenue Agency (CRA).

Here’s what to do:

1. File your tax return each year. Even if your income is low and you don’t owe taxes, filing ensures you’re considered for the benefit.
2. Complete Schedule 6 – Canada Workers Benefit. This form calculates how much you’re eligible to receive based on your income, marital status, and other details.
3. If you qualify for the Disability Tax Credit (DTC), indicate it on your return so the CRA can include the disability supplement.
4. Set up a direct deposit to receive your advance or final payments more quickly.
5. Keep your information current with the CRA — especially your address, marital status, and banking details. These factors affect your benefit amount and payment schedule.

If you received the CWB last year and still meet the criteria, the CRA automatically includes you in the Advanced Canada Workers Benefit (ACWB) for the next year. This means part of your benefit will be issued in installments throughout the year, with the balance paid when your next return is processed.