Government Benefits & Services

The major federal cash benefits available to Canadians — what they are, who qualifies, and how they interact with your tax return.

Most federal cash benefits in Canada are administered through the tax system, calculated from your reported income, and paid out on a fixed schedule by CRA or Service Canada. Filing a return each year is therefore necessary to receive them even if you have no tax to pay.

CPP — Canada Pension Plan retirement benefit

A contributory program. You and your employer each contributed 5.95% of employment earnings (2025) up to a yearly maximum during your working years; in return you receive a monthly pension starting as early as age 60. Taking it before 65 reduces the monthly amount by 0.6% per month; taking it after 65 increases it by 0.7% per month, up to age 70.

The pension is taxable income. The 2019–2025 “enhanced CPP” rules increase benefits for those who contributed under the new rules.

OAS — Old Age Security

A non-contributory benefit, funded from general revenue, paid to most Canadians from age 65. Eligibility depends on years of Canadian residence after age 18. Unlike CPP, the amount does not depend on prior earnings.

OAS clawback (recovery tax). If your net income exceeds a threshold (approximately $90,997 in 2025, indexed) the OAS is partially or fully recovered through a 15% reduction. Tax planning to manage net income in retirement frequently centres on staying below this threshold.

GIS — Guaranteed Income Supplement

A non-taxable top-up to OAS for low-income Canadians 65+. The GIS is income-tested aggressively (the clawback rate is 50% above modest thresholds), so for low-income seniors it pays to understand the interaction between RRIF withdrawals, CPP, and GIS.

Canada Child Benefit (CCB)

A monthly, tax-free, income-tested payment to families with children under 18. The maximum benefit (for very low incomes) is around $7,800/year per child under 6 and $6,580 per child 6–17, declining as family net income rises.

GST/HST credit

A quarterly, tax-free payment to lower-income individuals and families to offset GST or HST paid. Calculated automatically from your tax return; you do not have to apply.

Climate Action Incentive Payment (CAIP)

Federal carbon-pricing rebate, paid quarterly to residents of provinces where the federal backstop applies (currently Alberta, Manitoba, Ontario, Saskatchewan, New Brunswick, Newfoundland and Labrador, Nova Scotia, and PEI, plus the territories under different administration).

The amount depends on province and family size; you receive a higher amount if you live in a rural area.

Where to learn more

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