CCB Clawback Formula in 2026: How the Canada Child Benefit Phases Out

The CCB clawback formula for 2026

The CCB clawback formula for 2026 is the most-Googled-but-least-explained piece of Canadian family math. Most articles give you the headline numbers ($38,237, $82,847, 13.5%, 5.7%) without showing how they connect. This page walks the actual formula, step by step, with worked examples for 1-4 kid families.

The Canada Child Benefit reaches its max at low Adjusted Family Net Income, then phases out in two tiers as AFNI rises. The phase-out rate depends on how many kids you have, capped at 4. For most Canadian families the clawback eats $13 of every $100 of extra household income once AFNI passes $38,237, then slows to $5-$9 per $100 above $82,847.

TL;DR: For 2026-27 (July 2026 to June 2027), CCB is reduced at 7-23% of AFNI above $38,237 (Tier 1) and then 3.2-9.5% above $82,847 (Tier 2). The exact rate depends on number of kids (1, 2, 3, or 4+). A 2-kid family loses $13.50 in CCB for every $100 of AFNI in Tier 1, then $5.70 per $100 in Tier 2. RRSP contributions reduce AFNI dollar-for-dollar, so each $1,000 RRSP deposit can give back $135 of CCB for a 2-kid Tier 1 family.

Quick answer: the CCB clawback formula in 2026

The 2026-27 CCB phase-out works in three stages.

Stage 1: AFNI at or below $38,237. Full CCB. No clawback. A 2-kid family with both under 6 collects the federal max of $16,314/year ($8,157 per kid).

Stage 2: AFNI between $38,237 and $82,847 (Tier 1). CCB drops at a fixed percentage of every dollar of AFNI above $38,237. The rate is 7% for 1 kid, 13.5% for 2 kids, 19% for 3 kids, 23% for 4+ kids.

Stage 3: AFNI above $82,847 (Tier 2). CCB drops more slowly at 3.2% for 1 kid, 5.7% for 2 kids, 8% for 3 kids, 9.5% for 4+ kids per dollar above $82,847. CRA pre-computes the Tier 1 total reduction as a fixed dollar amount (called the “tier 2 constant”) and adds the Tier 2 percentage on top.

For most middle-income Canadian families with two kids, the clawback eats $13.50 of every $100 in extra AFNI in Tier 1, then slows to $5.70 per $100 in Tier 2. By AFNI $200,000 a 2-kid family has lost most of CCB, and by AFNI ~$330,000 it reaches zero.

How the two-tier CCB phase-out formula works

Below are the formulas exactly as CRA computes them in the 2026-27 calc sheet.

total_max = (num_under_6 × $8,157) + (num_6_to_17 × $6,883)
n         = min(num_children, 4)

if AFNI ≤ $38,237:
    CCB = total_max

else if AFNI ≤ $82,847:
    CCB = max(0, total_max − tier1_rate[n] × (AFNI − $38,237))

else:
    CCB = max(0, total_max − tier2_constant[n] − tier2_rate[n] × (AFNI − $82,847))

Tier 1 rates (per dollar of AFNI above $38,237):

1 kid: 7.0%
2 kids: 13.5%
3 kids: 19.0%
4+ kids: 23.0%

Tier 2 rates (per dollar of AFNI above $82,847):

1 kid: 3.2%
2 kids: 5.7%
3 kids: 8.0%
4+ kids: 9.5%

Tier 2 constants (CRA pre-computes for the Tier 1 reduction across $38,237-$82,847):

1 kid: $3,123
2 kids: $6,022
3 kids: $8,476
4+ kids: $10,260

CRA rounds these to whole dollars on the calc sheet. For 3 kids the theoretical product is 0.19 × ($82,847 − $38,237) = $8,475.90, which CRA rounds to $8,476.

Tier 1: AFNI between $38,237 and $82,847

Tier 1 is where most middle-income Canadian families sit. The clawback is steep here because CRA assumes families in this range are starting to no longer need the full transfer.

Example: a 2-kid family with both kids under 6 and AFNI of $60,000.

Full max CCB = 2 × $8,157 = $16,314
AFNI above Tier 1 threshold = $60,000 − $38,237 = $21,763
Tier 1 reduction (2 kids at 13.5%) = $21,763 × 0.135 = $2,938
Net CCB = $16,314 − $2,938 = $13,376/year

Monthly that's $1,114. Each $1,000 of extra AFNI in Tier 1 costs this family $135 in lost CCB.

For a 3-kid family at the same $60,000 AFNI:

Full max (assume all 3 under 6) = 3 × $8,157 = $24,471
Tier 1 reduction (3 kids at 19%) = $21,763 × 0.19 = $4,135
Net CCB = $24,471 − $4,135 = $20,336/year

The marginal clawback on each $1,000 of extra AFNI is steeper for bigger families ($190 lost per $1,000 for 3 kids vs $135 for 2 kids), but the base entitlement is also bigger, so the family still ends up with more total CCB.

Tier 2: AFNI above $82,847

Tier 2 kicks in at AFNI $82,847 and runs until CCB reaches zero. The clawback rate slows down, but it never stops until the benefit is fully phased out.

Example: a 2-kid family with both kids under 6 and AFNI of $120,000.

Full max CCB = $16,314
Tier 2 constant (2 kids) = $6,022 (this represents the full Tier 1 reduction across $38,237-$82,847)
AFNI above Tier 2 threshold = $120,000 − $82,847 = $37,153
Tier 2 reduction = $37,153 × 0.057 = $2,118
Net CCB = $16,314 − $6,022 − $2,118 = $8,174/year

Monthly that's about $681. Each $1,000 of extra AFNI in Tier 2 costs this family $57 in lost CCB, less than half the Tier 1 rate.

Tier 2 keeps eating CCB until it reaches zero. For a 2-kid family that happens at:

AFNI where CCB = 0 → $82,847 + ($16,314 − $6,022) ÷ 0.057 ≈ $263,400

Above that AFNI, federal CCB is gone for a 2-kid family. The CGEB (which replaced the GST/HST credit in July 2026) and provincial supplements have their own phase-outs that kick in earlier.

A worked example of the CCB clawback math

Two parents in Ontario, one earning $90,000 and one earning $30,000. Three kids: one under 6, two between 6 and 17. No RRSP contributions.

Step 1: compute AFNI. AFNI = $90,000 + $30,000 = $120,000 (no RRSP, no support payments).

Step 2: compute total max CCB.

1 child under 6 × $8,157 = $8,157
2 children 6-17 × $6,883 = $13,766
Total max = $21,923

Step 3: identify the tier. AFNI $120,000 is above $82,847, so the family is in Tier 2.

Step 4: apply the formula.

n = min(3, 4) = 3
Tier 2 constant for 3 kids = $8,476
AFNI above $82,847 = $120,000 − $82,847 = $37,153
Tier 2 reduction = $37,153 × 0.08 = $2,972
Net CCB = $21,923 − $8,476 − $2,972 = $10,475/year

That's about $873/month, plus Ontario Child Benefit on top, plus CGEB quarterly. The full federal max for this family would have been $21,923 ($1,827/month) if they earned under $38,237. So the $120,000 dual income costs them about $11,450/year in clawed-back CCB.

This is the math the calculator on this site runs in milliseconds. The advanced calculator also visualizes the curve so you can see exactly where you sit on the clawback line.

How RRSP contributions lower your AFNI and raise CCB

RRSP contributions are deducted from AFNI dollar-for-dollar. That makes them the single most powerful CCB-boosting lever a Canadian family has access to.

For a 2-kid Tier 1 family, every $1,000 of RRSP contribution lowers AFNI by $1,000 and raises CCB by $135 a year. Stack that with the federal-and-provincial tax refund on the contribution (about $300 at a $80,000 income), and the effective return on each $1,000 RRSP dollar can hit 43%, paid back in the same calendar year.

This is the reason most family-finance advisors flag RRSP contributions as a higher-priority savings vehicle than TFSA for families with kids under 18 and AFNI in the Tier 1 range. The TFSA doesn't reduce AFNI, so it doesn't help CCB. The RRSP does both at once.

Example: a 2-kid Ontario family at $70,000 combined income with no RRSP contribution gets about $11,800 in CCB. Add a $5,000 RRSP contribution and AFNI drops to $65,000, lifting CCB to $12,475. The family also gets back about $1,500 in federal-plus-Ontario tax refund. Total reward for the RRSP contribution: $2,175 in the same year, plus the RRSP balance compounds inside the account for decades.

This is why the advanced calculator on this site includes a RRSP input. It's not just about retirement. It's about the monthly CCB cheque.

Frequently asked questions

How is the CCB clawback calculated in 2026?

CCB drops at 7-23% (depending on kid count) for every dollar of AFNI above $38,237 in Tier 1, then 3.2-9.5% for every dollar above $82,847 in Tier 2. The exact formula uses a pre-computed “tier 2 constant” to handle the Tier 1 reduction. A 2-kid family loses $135 of CCB per $1,000 of extra AFNI in Tier 1, then $57 in Tier 2.

At what income does CCB start to phase out?

AFNI $38,237 for the 2026-27 benefit year. Below that, families collect full federal CCB. Above that, the Tier 1 clawback kicks in. The 2025-26 threshold was $37,487 (CRA indexes the threshold every July).

What is the CCB reduction rate per child?

Tier 1: 7% for 1 kid, 13.5% for 2 kids, 19% for 3 kids, 23% for 4+ kids. Tier 2: 3.2% for 1 kid, 5.7% for 2 kids, 8% for 3 kids, 9.5% for 4+ kids. CRA caps the kid count at 4, so families with 5 or more children apply the 4-kid rate.

Does RRSP reduce CCB clawback?

Yes. RRSP contributions are deducted from line 23600 (net income), which is the input to AFNI. Every $1,000 of RRSP contribution lowers AFNI by $1,000 and raises CCB by the marginal phase-out rate ($135 for a 2-kid Tier 1 family). Plus the regular tax refund on the contribution.

When does CCB reach zero?

For a 2-kid family (both under 6, full max $16,314), federal CCB reaches zero at approximately AFNI $263,400 in 2026-27. For 3-kid families it's around $300,000, and for 4-kid families closer to $340,000. Provincial supplements phase out at lower thresholds, so total tax-free transfers drop sooner.

Verdict on the CCB clawback formula in 2026

The CCB clawback formula for 2026 is not complicated, but no one explains it cleanly. CRA's calc sheet is dense, the per-tier rates differ by kid count, and the Tier 2 constants look arbitrary unless you know they encode the full Tier 1 reduction.

The summary: a 2-kid Canadian family loses about $13.50 of CCB per $100 of extra AFNI between $38,237 and $82,847, then about $5.70 per $100 above $82,847, until CCB reaches zero around AFNI $263,400. RRSP contributions claw back the clawback at the same marginal rate, which is why family-finance advisors flag them as a top savings priority for households with kids under 18.

The calculator on this site runs this exact formula with the 2026-27 numbers. The advanced calculator visualizes the curve so you can see your family's specific position. Run yours.