Treatment of Canada Disability Benefit Payments (H-25-05)

Date: September 5, 2025

• 1 (a) – Local Housing Corporation
• 2 (a) and 2 (b) – Rent Supplement Programs
• 4 – Federal Program
• 6 (a) – Non-Profit Program
• 6 (b) – Non-Profit Co-Op Program
• 8 – Urban Native Program

Background

The Canada Disability Benefit (CDB) is a new federal income-tested benefit providing up to $200 each month ($2400 annually) to eligible individuals with disabilities aged 18 to 64. Currently, the federal government has not exempted the CDB from taxation under the Income Tax Act. This means that CDB payments will be included on line 23600 of an individual’s Notice of Assessment issued by the Canada Revenue Agency and will therefore affect Rent-Geared-to-Income (RGI) assistance income determinations.

Ontario continues to call on the federal government to amend its Income Tax Act to exclude the CDB from taxation.

The CDB will not take effect until the 2025 taxation year, so increases to household income resulting from CDB payments will generally not impact RGI eligibility or rent until tax data for 2025 is used in annual reviews and eligibility determinations – typically July 1, 2026.

The Ministry of Municipal Affairs and Housing is strongly encouraging Service Managers to use their flexibility and/or authority under the Housing Services Act, 2011 (HSA) to mitigate any negative impacts on RGI households as a result of CDB payments.

Under Section 51 of the HSA, Service Managers are authorized to forgive all or part of the rent payable by a household. This option allows for the exclusion of CDB payments from RGI income determinations for the following:

• Annual rent reviews
• In-year rent reviews
• Eligibility assessments

Action to be taken

Housing Providers will exclude income from the CDB provided in the 2025 Notice of Assessment or RGI calculations upon annual and in-year reviews; and upon acceptance of an RGI unit when reviewing if the household is above the Household Income Limits (HILs) as set out in Directive H-25-01.

The Social Housing Registry will exclude income from the CDB when determining initial eligibility for RGI upon application or for continued eligibility at annual review.

Reference

• Social Housing Notification 25-06
• Housing Services Act, 2011 – Section 51
• Directive H-25-01

Jayne Hartley
Director, Housing & Social Services Department

The following individuals have received a copy of this Directive:

• Jennifer Campbell, Commissioner, Community Services
• Jenna Morley, City Solicitor
• Rachel McGeachie, Acting Manager of Homelessness Services
• Mitchell Grange, Policy Manager, Housing & Social Services Department
• Housing Programs Administrators, Housing & Social Services Department
• Jannette Amini, Manager of Legislative Services / Clerk, County of Frontenac

If you have any questions, please contact a Housing Programs Administrator, Housing and Social Services Department.