Many Canadian parents rely on the Canada Child Benefit (CCB) to help with the costs of raising children. So, it can be alarming when you notice that your monthly CCB payment has suddenly dropped after filing your taxes.
If you’re wondering, “Why did my CCB decrease this year?”, here are the most common reasons for a Canada Child Benefit reduction in 2025—and what you can do about it.
1. Higher Family Income = Lower CCB Payments
The Canada Child Benefit is an income-tested program, meaning the more your family earns, the less you receive.
- The CRA uses your Adjusted Family Net Income (AFNI) from your tax return to calculate your benefit.
- For families with two children, the CCB begins to decrease once AFNI exceeds $37,487.
- The reduction rate is 13.5% of the income above this threshold.
👉 If your household income increased in 2024 due to a raise, bonus, or fewer deductions, your CCB in 2025 will be lower.
2. Your Child’s Age Changed the CCB Amount
The age of your child directly affects your monthly benefit:
- Children under 6 → higher monthly CCB amount.
- Children aged 6–17 → lower monthly CCB amount.
- Children 18 or older → no longer eligible for the CCB.
This is one of the most common reasons for a sudden drop. For example, when a child turns 6 years old, the CCB automatically decreases by roughly $100 per month.
3. End of Provincial or Temporary CCB Supplements
Some provinces provide top-up payments in addition to the federal CCB. These amounts can be temporary.
For example, British Columbia’s temporary family bonus program (July 2024 – June 2025) has now ended. Families in BC saw their monthly CCB payments decrease in July 2025, even though their income and family situation didn’t change.
4. CRA Adjustments or Overpayment Recovery
Another reason for a CCB payment reduction is that the CRA may be adjusting for overpayments from prior years.
During the pandemic, collections were paused. Now, CRA has resumed recovering outstanding balances by reducing current benefits. If you received extra benefits in the past, part of your 2025 CCB may be clawed back.
What To Do If Your CCB Decreased
Here are practical steps to understand your benefit changes:
- Check CRA My Account
Review your CCB calculation details and payment schedule. - Review your Notice of Assessment
Compare your family income year-over-year. Even a small increase can lower your benefit. - Confirm your child’s age
If your child recently turned 6 or 18, the decrease is expected. - Look for provincial program changes
Verify if a provincial top-up program ended. - Call CRA if unsure
The CRA Benefits line (1-800-387-1193) can explain the reason for your CCB change.
FAQs About CCB Reductions in 2025
❓ Why did my CCB go down in July 2025?
CRA recalculates CCB every July based on your family’s net income from the previous year’s tax return. If your income increased or a child hit an age milestone, your benefit may have decreased. In BC, the end of the temporary provincial bonus also lowered payments starting July 2025.
❓ Will my CCB go up again next year?
Yes, if your family income decreases or you add another eligible child, your benefit may increase.
❓ Can I challenge my CCB reduction?
If you believe the calculation is incorrect, you can request a reassessment by contacting CRA and providing updated income or custody information.
Quick Reference Table
| Reason for CCB Decrease | Explanation |
|---|---|
| Higher income | CCB decreases once family income exceeds CRA thresholds. |
| Child turned 6 or 18 | Payments drop at 6; stop completely at 18. |
| End of provincial top-ups | Expiry of programs (e.g., BC family bonus) lowered payments in 2025. |
| CRA repayment adjustment | Overpayments from previous years are deducted from current benefits. |
Final Thoughts
If you’ve noticed that your Canada Child Benefit has decreased in 2025, you’re not alone. The most common causes are higher income, age milestones for your children, provincial benefit expirations, or CRA repayment adjustments.
By checking your CRA My Account and understanding these rules, you can plan ahead and avoid surprises in your family budget.