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Adjusted net income starts with the net income on line 23600 of your return, then takes out a few specific items. For the Canada child benefit the CRA calls it adjusted family net income: your net income plus your spouse or partner’s, minus universal child care benefit and registered disability savings plan income received, plus any of those amounts you repaid. Most families will find it equals their combined line 23600.
What goes into adjusted net income?
Begin with line 23600. The CRA describes it as your total income less a set of deductions, and it says the agency uses it for the Canada child benefit, the GST/HST credit, social benefits repayment and some other credits. So the deductions matter: an RRSP contribution, union dues, child care expenses and support paid all pull line 23600 down.
The adjustment itself is small. You subtract UCCB and RDSP income you received and add back amounts you repaid. Unless you have one of those, there’s nothing to adjust, and your family figure is just two line 23600 amounts added together.
A quick note on the name. “Adjusted net income” shows up in other contexts too, and only the child benefit version is covered on this page.
How does it change your Canada child benefit?
The benefit begins to shrink once adjusted family net income passes $38,237, and it shrinks faster in the next band. The CRA sets the July 2026 to June 2027 payments from your 2025 return.
| Children | Reduction up to $82,847 | Above $82,847 |
|---|---|---|
| 1 | 7% | $3,123 plus 3.2% |
| 2 | 13.5% | $6,022 plus 5.7% |
| 3 | 19% | $8,476 plus 8% |
| 4 or more | 23% | $10,260 plus 9.5% |
Read the first row like this. For one child, each dollar above $38,237 takes 7 cents off the benefit, until income reaches $82,847.
Check it against the example below. At $70,000 you’re $31,763 over the $38,237 line, and 7% of that is $2,223, which is the reduction the calculator shows. Taken off the $8,157 maximum for a child under 6, that leaves $5,934.
When does a change in income show up in your payments?
Later than you’d expect. The CRA recalculates payments every July, and it works from the year before.
Your benefit payments are recalculated every July based on your adjusted family net income from the previous year.
Canada child benefit: how we calculate your CCB, canada.ca
So a raise or a new job in 2026 won’t touch your cheques until July 2027. The flip side helps too: if your income fell in 2025, you won’t see the bigger benefit until July 2026. Plan around that gap, especially if you’re coming off a parental leave year or a year with a layoff.
A worked example with one RRSP contribution
A family has one child under 6 and $70,000 of adjusted family net income. The Canada child benefit calculator shows $5,934 a year, or $494.47 a month, for July 2026 to June 2027.
Now put $5,000 into an RRSP and deduct it. Line 23600 falls to $65,000, and the benefit rises to $6,284. That’s $350 more, which is exactly 7% of $5,000.
The same contribution also cuts income tax. On $60,000 of pay in Ontario, a $5,000 RRSP amount lowers tax by about $1,217 in the take-home pay calculator. So the deduction pays twice, once at tax time and again through the benefit, for a family in that income range. The RRSP calculator shows what the money grows to.
Mistakes that throw off your adjusted net income
Forgetting that a spouse’s income counts is the usual one. The family figure is the two net incomes added together, and your child’s income isn’t included.
Another is planning around this year’s income. The CRA bases the payment year on the prior year’s return, so a raise in 2026 will move payments from July 2027, not before.
Third, treating our numbers as a payment promise. The calculator leaves out provincial child benefits, and it can’t see your file. Check your CRA My Account for the amount the agency actually sets.
The GST/HST credit calculator also rests on your income, though this page doesn’t say whether that credit uses the adjusted figure.
Where do you find your own number?
Line 23600 is printed on your return and on your notice of assessment, so pull up last year’s copy in your CRA account. Add your spouse or partner’s line 23600, then adjust for any UCCB or RDSP amounts. That total is the number to compare with the $38,237 and $82,847 lines above. If you and your partner file separately, you each need the other’s figure.
The sources behind this page
The definitions, thresholds and reduction rates come from the CRA‘s Canada child benefit page for July 2026 to June 2027, and the line 23600 description from the CRA’s page for that line. The examples use the 2026 data we checked on 29 September 2026. We aren’t a government service and we don’t speak for one.
Frequently asked questions
What is adjusted net income?
For the Canada child benefit it is adjusted family net income: family net income minus UCCB and RDSP income received, plus any of those amounts repaid.
Which line on my return is net income?
Line 23600. It is your total income minus certain deductions.
Does my spouse's income count?
Yes. Family net income adds your net income and your spouse or common-law partner's. Your child's income is not included.
Which year's income sets my child benefit?
Payments from July 2026 to June 2027 are based on your 2025 return.
Can an RRSP deduction raise my benefit?
It lowers line 23600, so the benefit can go up. In our example, $5,000 adds $350 a year for one child under 6.
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