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Canada Workers Benefit increase for 2027 raises max amounts
The Canada Workers Benefit will be renamed Build Canada Workers Benefit and its maximum annual credit will rise to $1,859 for single workers and $3,143 for families in 2027. The proposal applies to the 2027 tax year, pending parliamentary approval, and targets low‑income workers and eligible persons with disabilities.
In this story
At a glance
- What changes
- Maximum credit rises to $1,859 for individuals and $3,143 for families, with lower income thresholds
- Timing
- Proposed for 2027 tax year, subject to parliamentary approval
- Who is affected
- Low‑income workers and eligible persons with disabilities
The details
- Announced by
- the federal government (Budget 2026)
- Previous rule
- The existing Canada Workers Benefit for 2027 was set at a maximum of $1,709 for single individuals and $2,943 for families, with a minimum working‑income threshold of $3,000 for the basic credit and $1,150 for the disability supplement.
- New rule
- The proposed Build Canada Workers Benefit would increase the maximum credit to $1,859 for single workers and $3,143 for families. The basic‑benefit income floor would drop from $3,000 to $500, and the disability‑supplement floor would fall from $1,150 to $200.
Announcement and purpose
Canada’s federal government introduced the changes in Budget 2026 on 5 November. The aim is to broaden support for low‑income earners and people with disabilities by raising credit amounts and lowering the earnings thresholds that trigger the benefit.
Benefit amount and eligibility changes
Under the proposal, the basic credit would begin accruing at 27 % of earnings above $500, compared with the current floor of $3,000. For workers who hold a valid Disability Tax Credit certificate, the supplement would start at earnings above $200 instead of $1,150. Phase‑out thresholds would stay at $27,104 for individuals and $30,731 for families, so the point at which the credit disappears is unchanged.
- Maximum credit: $1,859 for single workers, $3,143 for families
- Basic‑benefit threshold reduced to $500
- Disability supplement threshold reduced to $200
Advance payment adjustments
The budget also proposes to cut advance instalments from 50 % to 25 % of the 2026 entitlement for the 2027 tax year, beginning in July 2027, and to eliminate advances altogether from the 2028 tax year onward. Workers would receive the full entitlement after filing their 2027 return in 2028.
- July 2027 onward: advances reduced to 25 % of 2026 entitlement
- 2028 onward: advances removed, full payment after tax filing
What this means for travellers
Trip planning
- Advance payments will be lower in July 2027, which may affect cash‑flow planning for low‑income travellers.
- Full benefit payments will be received after filing the 2027 tax return in 2028, not throughout the year.
Cost and documents
- No new fees are introduced; the credit remains a refundable tax credit.
- Workers must continue to file Schedule 6 with their annual return and keep a valid Disability Tax Credit certificate (Form T2201) on file.
What you need to do
- File the 2026 income tax return on time and include Schedule 6 to provide the CRA with needed income data.
- Ensure any Disability Tax Credit certificate is current and registered with the CRA before filing.
- Monitor parliamentary proceedings for final approval of the Build Canada Workers Benefit before planning for 2027 payments.
Who this affects
-
Low‑income workers earning above $500
The basic‑benefit threshold is proposed to drop from $3,000 to $500, allowing more workers to qualify.
What to do File Schedule 6 with the 2026 tax return to ensure eligibility data is available.
-
Workers with disabilities holding a Disability Tax Credit
The disability‑supplement threshold would fall from $1,150 to $200, expanding access.
What to do Confirm the Disability Tax Credit certificate is valid and on file with the CRA.
-
Families with dependents earning above $500
Family maximum credit would rise to $3,143, and the income floor would be lowered.
What to do Include family income details on Schedule 6 when filing the tax return.
-
Current advance‑payment recipients
Advance instalments are set to be reduced to 25 % in July 2027 and eliminated from 2028.
What to do Adjust personal budgeting to reflect lower or absent advance payments.
Frequently asked questions
What is the new maximum Canada Workers Benefit for 2027?
The proposed maximum is $1,859 for single workers and $3,143 for families, up from $1,709 and $2,943 respectively.
When will the Build Canada Workers Benefit take effect?
The changes are proposed for the 2027 tax year but will only apply after parliamentary approval and the 2027 filing season.
How does the income threshold change under the proposal?
The basic‑benefit threshold would drop from $3,000 to $500, and the disability‑supplement threshold would fall from $1,150 to $200.
Will advance payments be affected?
Yes, advance payments for the 2027 tax year would be cut to 25 % of the 2026 entitlement starting July 2027, and they would be eliminated entirely from the 2028 tax year onward.
Do I need to apply for the new benefit?
No separate application is required; the credit is claimed on Schedule 6 of the annual tax return, provided the eligibility criteria are met.
What should workers with disabilities do to benefit from the change?
They should ensure their Disability Tax Credit certificate (Form T2201) is valid and on file with the CRA before filing their tax return.
