The Build Canada Workers Benefit is being proposed as an enhanced version of the existing Canada Workers Benefit, with the federal government saying the changes would put more money in the pockets of low- and modest-income workers.
The proposal was included in Budget 2026, released on November 5, 2026, and is not yet an enacted benefit.
The measures would apply beginning with the 2027 taxation year if approved through the legislative process.
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What the Build Canada Workers Benefit would change
Budget 2026 proposes lowering the minimum working-income threshold for the benefit from $3,000 to $500.
For workers eligible for the disability supplement, the minimum earnings threshold would fall from $1,150 to $200, according to the budget’s support-for-workers measures.
The proposal would also increase the maximum benefit available to eligible recipients.
| Recipient group | Current maximum | Proposed maximum |
|---|---|---|
| Single individuals without children | $1,709 | $1,859 |
| Families | $2,943 | $3,143 |
The proposed maximums would apply for the 2027 taxation year, with the amounts subject to the normal indexation rules for later years.
The government estimates that about 1.9 million low-income workers would receive higher benefits, including approximately 180,000 people who would become eligible under the expanded rules.
Workers with the lowest earnings could receive up to $675 more, while those also eligible for the disability supplement could receive nearly $1,000 more, according to the budget documents.
How advance payments would change
The proposal would also phase out the Advance Canada Workers Benefit, which currently provides eligible recipients with advance payments based on their previous tax-year entitlement.
For the 2027 taxation year, advance payments would be reduced by half and would begin in July 2027.
Advance payments would be eliminated starting with the 2028 taxation year, meaning eligible workers would receive their full entitlement after filing their tax return for the year.
The budget says the change is intended to better match payments with a worker’s current circumstances and reduce the risk of people receiving more in advance than they ultimately qualify for.
How much support could workers receive?
The proposed benefit would use a lower phase-in threshold while keeping the income levels at which the benefit is fully phased out broadly aligned with the current structure.
| Proposed 2027 measure | Details |
|---|---|
| Minimum earnings threshold | $500 |
| Disability supplement threshold | $200 |
| Maximum for single individuals without children | $1,859 |
| Maximum for families | $3,143 |
| Single-person phase-out threshold | $27,104 |
| Family phase-out threshold | $30,731 |
The phase-out thresholds listed in the budget are designed so that the higher maximum benefits would not change the income levels at which a recipient’s entitlement is fully phased out, as outlined in the tax measures information.
Actual payments would continue to depend on factors such as working income, family status, adjusted net income and eligibility for the disability supplement.
Government estimates poverty reduction
The federal government estimates that the enhanced benefit would lift approximately 240,000 people out of poverty.
Finance Canada describes the proposal as a way to strengthen incentives to work while providing additional support to people earning lower wages.
Budget 2026 also proposes $151.5 million over five years, beginning in 2026–27, for Employment and Social Development Canada to implement the reforms.
When would the new benefit begin?
The proposed Build Canada Workers Benefit would begin with the 2027 taxation year, subject to Parliament approving the necessary legislation.
That means the first full benefit would be calculated from a taxpayer’s 2027 income and claimed through the corresponding tax filing process.
The government has not announced a separate monthly payment schedule for the enhanced benefit because the proposal would ultimately be delivered through the income-tax system.
Until the proposed changes become law, workers should not assume that the new thresholds or maximum amounts are available for current tax filings.
What workers should watch next
The next significant step is the passage of legislation implementing the budget proposal.
Once the rules are enacted, the Canada Revenue Agency is expected to update its guidance on eligibility, calculations, advance payments and tax-return claims.
Workers who currently receive the Canada Workers Benefit should keep their income and tax information up to date and review official CRA guidance before filing for the 2027 taxation year.
The proposal is part of a wider Budget 2026 affordability package that also includes a proposed grocery and essentials benefit supplement for 2027 and other tax measures.
Frequently Asked Questions
What is the Build Canada Workers Benefit?
It is a proposed enhanced version of the Canada Workers Benefit, a refundable tax credit for low- and modest-income workers.
When would the Build Canada Workers Benefit start?
The proposed changes would apply beginning with the 2027 taxation year, subject to parliamentary approval.
What would be the maximum benefit?
The proposed maximum would be $1,859 for a single individual without children and $3,143 for a family in 2027.
Would advance Canada Workers Benefit payments continue?
They would be reduced by half for the 2027 taxation year and eliminated beginning with the 2028 taxation year under the proposal.
Is the new benefit already available?
No. Budget 2026 proposes the measure, but the new thresholds and amounts would need to be enacted before they take effect.
Fact-Checked: Key figures, proposed dates, thresholds and payment changes were checked against Budget 2026 and Department of Finance Canada materials.
Disclaimer: The Build Canada Workers Benefit remains a budget proposal until Parliament approves the required legislation.