It may not be tax season, but some folks will be receiving some federal benefits this week.
Eligible recipients of the Advanced Canada Worker Benefit (ACWB) can expect a boost to their payments, thanks to the Canada Revenue Agency’s (CRA) annual indexation process. Introduced in 2018, indexation adjusts benefit and credit amounts to keep pace with inflation and the rising cost of living.
RELATED: Bigger Benefits Are Coming To Canadians This July And Here’s How Much You Can Get
ADVANCED CANADA WORKERS BENEFIT
The Advanced Canada Worker Benefit (ACWB) is a refundable tax credit designed to support low-income workers and families. It’s made up of two parts: a basic amount and an additional disability supplement. “This initiative puts more money in the workers’ pockets to help cope with the rising cost of living,” reads the Government of Canada’s webpage.
It is different from the Canada Workers Benefit (CWB) which is a “refundable tax credit to help individuals and families who are working and earning a low income.”
The ACWB provides you with advance payments of up to 50% from the Canada Revenue Agency (CRA). These are doled out across 3 payments with also no need to apply. It’s just sent straight to your bank account.
For 2026, payments are increasing by two per cent—slightly lower than last year’s 2.7 per cent bump. Both maximum benefit amounts and income thresholds are updated each year based on the Consumer Price Index (CPI).
The updated payment rates kicked in on July 1, marking the start of the new benefit year.
ELIGIBILITY
Your eligibility depends on a few things, but not many. You must meet all the criteria, though:
- Earn working income and your net income is below the net income level set for your province or territory of residence
- Are a resident of Canada throughout the year
- Are 19 years of age or older by December 31, or you live with your spouse or common-law partner or your child
Unfortunately, students are not eligible for the CWB or ACWB. Although, it is possible for some part-time students to receive it. Individuals confined to a prison for at least 90 days of the year, as well as officers and servants of another country (who do not pay Canadian taxes), are not eligible either.
HOW MUCH CAN I GET?
If you meet all the criteria, then the maximum amount you can receive is $1,665 – up $32 from the previous year for single individuals. Families can receive a maximum of $2,869 – up $56 from the previous year.
The amount you get will gradually be reduced if your adjusted net income is more than $26,149. And you will not receive any basic amount if your adjusted net income is more than $36,749.
The next payment will be coming on July 10, 2026, so keep an eye on your bank account until then!
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