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Family · 2026 rules

CCB optimizer

The Canada Child Benefit is reduced as adjusted family net income rises, so an RRSP contribution does two things at once: it cuts your tax and it raises next year's benefit. For a family inside the reduction band, the combined return is often well over 50%.

  • Benefit by AFNI
  • RRSP leverage
  • Monthly payment estimate
Your numberslive
Family income
$
$
Children
kids
kids
The lever
$6,000
$0$10,000$20,000$30,000$40,000

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Child benefit after the contribution
$562
$6,744 a year for 2 children — paid monthly, tax-free
The $6,000 contribution adds $342 of benefit on top of $1,929 in tax refund.
Benefit gained
$342
Extra CCB for the next benefit year
Tax refund
$1,929
29.6% marginal rate on the higher income
Combined return
37.9%
Refund plus benefit, per dollar contributed

What the contribution is worth

Each dollar of RRSP, split into its two payoffs
Tax refund$1,929
Immediate, via your return
Extra child benefit$342
Spread over twelve monthly payments
Both togetherbetter$2,271
On a contribution still invested and growing
Adjusted family net income$124,000
After the RRSP deduction$118,000
Maximum benefit for your children$7,997 per child under 6, $6,748 per child 6 to 17$14,745
Reduction before the contributionAt 5.7% of income over the applicable threshold$8,343
Reduction after the contribution$8,001
Benefit received$6,744

The reduction curve

Annual CCB for 2 children, across adjusted family net income
$0$3,834$7,667$11,501$15,335$0k$25k$50k$75k$100k$125k$150k$175k$200k$220kAdjusted family net incomeAnnual child benefit
Where the slope changes
Full benefit up toNo reduction at all below this income$37,487
First reduction band to $81,222The steepest part of the curve — where an RRSP dollar works hardest13.5%
Second band above $81,222A gentler taper that runs until the benefit reaches zero5.7%

Sensitivity to the contribution

$0 contributedNo contribution — your current benefit$534
$2,500 contributed$143 more benefit a year$545
$5,000 contributed$285 more benefit a year$557
$10,000 contributed$570 more benefit a year$581
$15,000 contributed$855 more benefit a year$605
$20,000 contributed$1,140 more benefit a year$629
The benefit year runs July to JunePayments from July 2026 are based on your 2025 return, so a contribution made now shows up in next July's payment — and both partners have to file for the benefit to continue at all.
How this is calculated

Maximum benefits are $7,997 per child under six and $6,748 per child aged six to seventeen for the 2026–27 benefit year. The reduction is applied to adjusted family net income above $37,487, at a rate that depends on the number of children, with a second, gentler rate above $81,222.

Adjusted family net income is both partners’ net income (line 23600) with a few adjustments. An RRSP or FHSA deduction lowers it dollar for dollar; a TFSA contribution does not.

The refund is calculated by claiming the whole contribution against the higher of the two incomes, which is where the deduction is worth the most. Provincial child benefits — Ontario’s OCB, Alberta’s ACFB, Quebec’s Family Allowance — are paid separately and are not included here, so your total is usually higher.

These results are illustrative estimates based on published 2026 rates and typical lender rules. They are not financial, tax, or legal advice, and they are not a mortgage or credit approval. See the methodology and disclaimer.

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