The Canada Workers Benefit (CWB) is a refundable tax credit that incentivizes low-income Canadians to keep working and encourages others to enter the workforce. This nationwide program was introduced as the Workers Income Tax Benefit in 2007 and the name was changed to the Canada Workers Benefit in 2018.
The maximum amount you can receive is $1,428 for individuals and $2,461 for families. These amounts may change depending on your home province or territory. Individuals receiving the disability tax credit are also eligible for a disability supplement as part of the CWB.
The benefit is claimed when the worker is filing their income tax return, and a credit is applied against their taxable income to allow them to pay less tax, or depending on the individual circumstance, possibly receive a tax refund.
Learn about who’s eligible for the CWB, how to claim it, and more below.
Who’s eligible for the Canada Workers Benefit?
To be eligible for the Canada Workers Benefit, a person must:
- be employed and earning income,
- be a Canadian resident who is at least 19 years of age,
- pay taxes in Canada,
- earn income over $3,000, and
- have an individual net income under $33,015, or a family net income of $43,212.
A Canadian under 19 may qualify if they live with a spouse or dependant.
To qualify for the disability supplement, you must meet the criteria above and qualify for the disability tax credit with an approved T2201 Disability Tax Credit Certificate.
To qualify, a person must not:
- be a full-time student,
- be exempt from paying taxes in Canada,
- have a net income over $33,015 for single people, or a net family income of $43,212, or
- be incarcerated for at least 90 days of that year.
For more information, see: Canada workers benefit – Eligibility.
How much is the Canada Workers Benefit worth?
The CWB has 2 main parts: the basic amount and the disability supplement. The basic amount is the credit received by all Canadian residents that qualify for this benefit, and the disability supplement is an extra credit available for those living with a disability.
The CWB tax credit takes several factors into consideration when calculating how much you’ll receive, including:
- your income (or family income),
- marital status,
- the province or territory where you live,
- if you have an eligible dependent,
- and if you’re eligible for the disability supplement.
Here are the maximum amounts:
| CWB recipient | Maximum amount |
|---|---|
| Individuals | $1,428 |
| Families | $2,461 |
| Those with disabilities | $737 |
Note: These amounts may be different for residents in Alberta, Nunavut, and Quebec. To find out the maximum amounts for these provinces, see: Net income levels.
How do I get the Canada Workers Benefit?
In order to receive the Canada Workers Benefit, you must file your taxes. When your taxes are filed electronically via tax software, the Canada Revenue Agency (CRA) will automatically determine whether you qualify to receive this benefit based on the eligibility criteria.
If you’re filing your taxes by hand, you’ll need to fill out a 3-part Schedule 6 form. You’ll enter the total CWB amount determined in your Schedule 6 on line 45300 of your return.
Looking for a trusted tax software to file your income tax and claim the CWB? Try Wealthsimple Tax:
Wealthsimple Tax (formerly SimpleTax) is free Canadian tax software that aims to make filing your taxes easy. There’s no downloading necessary – you can go through the process right in your internet browser with step-by-step instructions and auto-fill features. And with maximum refund and accuracy guarantees in place – it’s worth giving it a shot. You’ll even be able to transfer prior year data, an option only available on a handful of other tax software.
- It's free to use
- 100% accuracy guarantee
- Support for all provinces – even Quebec
- Covers simple tax situations, plus some complex ones
- Ability to import prior year data
- Support is through email only
- There is no app
- Limit of 20 returns per account
- Canadian citizen
- Maximum refund guarantee
- RRSP calculator
- Auto-fill available
- Always
What do you think about the Canada Workers Benefit?
Do you think that the Canada Workers Benefit is a good incentive for low-income workers to keep working or for young people to join the workforce rather than rely on government interventions?
Do you feel that the benefits are enough?
We want to hear your thoughts! Let us know in the comments below.
FAQ
What is the Canada Workers Benefit?
The Canada Workers Benefit is a tax credit offered by the federal government for low-income workers.
When did the Canada Workers Benefit start?
In 2007, the Canadian government established the Workers Income Tax Benefits as a nationwide initiative to offer tax relief to low-income workers. This program has been restructured over the years, and in 2018 the name was changed to the Canada Workers Benefit.
Who qualifies for the Canada Workers Benefit?
Residents of Canada who are working and earning income below a certain threshold are eligible for the Canada Workers Benefit. Eligibility is automatically calculated by the Canada Revenue Agency when a tax return is filed.
How do I claim the Canada Workers Benefit?
Because the Canada Workers Benefit is a tax benefit, you must file your taxes in order to receive this financial relief. The deadline for tax filing in Canada is April 30 of each year.
What are the Canada Workers Benefit advance payments?
The CWB advance payments are half the calculated benefit amount, given early to those who were eligible in the prior tax year. Though there used to be an application to receive CWB advance payments, this was proposed to change to an automatic payment in July 2023.
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