Making $90K+ in Canada? Here’s What Could Change.

In Canada, earning a higher family income can be great but it can also mean that some income-tested benefits and supports become smaller or you may no longer qualify for certain programs.

Here are some examples families should know about:

▪︎ CANADIAN DENTAL CARE PLAN (CDCP)
If your adjusted family net income is $90,000 or more, you generally don’t meet the income requirement for the CDCP. To qualify, your adjusted family net income must be less than $90,000, and you must also meet the other eligibility requirements, including not having access to private dental coverage.

▪︎ CANADA CHILD BENEFIT (CCB)
The CCB doesn’t suddenly disappear at $90,000. Instead, the amount gradually decreases as adjusted family net income increases. The reduction depends on your income and the number of children you have.

▪︎ CHILD-CARE SUBSIDY
In Ontario, the amount a family pays for subsidized child care is based partly on family adjusted net income. So, as income increases, the amount of subsidy may change.

▪︎ ONTARIO TRILLIUM BENEFIT (OTB)
The OTB includes several credits, including the Ontario Energy and Property Tax Credit and Ontario Sales Tax Credit. Eligibility and the amount you receive depend on factors including income and your circumstances.

▪︎ ONTARIO CHILD BENEFIT (OCB)
This is also income-tested and is designed for low- to moderate-income families. As family income increases, the benefit can be reduced or phased out depending on the family’s circumstances.

So here’s the interesting part. A family can earn more money from employment but see some government benefits and subsidies decrease at the same time.

That doesn’t mean earning more is a bad thing. It simply means your take-home financial picture can be different from your gross household income.

Would you rather have a higher family income with fewer benefits, or a lower income with more benefits? 😀
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