Income thresholds
Two thresholds and two rates govern the whole credit. Learn them and you can place any household on the scale in under a minute: the supplement phase-in at the bottom, and the phase-out at the top.
The thresholds, July 2026 to June 2027
| Threshold or rate | Figure |
|---|---|
| Single supplement phase-in starts | $11,564 of adjusted family net income |
| Single supplement phase-in rate | 2% of income above $11,564 |
| Single supplement fully phased in | $23,264 of income |
| Phase-out starts | $46,432 of adjusted family net income |
| Phase-out rate | 5% of income above $46,432 |
Below $46,432, every household receives its full maximum (subject only to the single supplement phase-in for single adults with no children). Above $46,432, the annual credit falls by 5 cents for every extra dollar of income. The rate is the same for every family type; what differs is how far a household can travel before its credit is exhausted, because larger maximums take longer to wear down at 5 cents per dollar.
Cut-off incomes: where the credit reaches zero
| Household | Maximum per year | Income where the credit reaches zero |
|---|---|---|
| Single, no children | $679 | $60,012 |
| Couple, no children | $890 | $64,232 |
| Single parent or couple, one child | $1,124 | $68,912 |
| Single parent or couple, two children | $1,358 | $73,592 |
| Single parent or couple, three children | $1,592 | $78,272 |
| Single parent or couple, four children | $1,826 | $82,952 |
Each cut-off is the phase-out threshold plus the maximum divided by the 5% rate. For a single person: $46,432 + ($679 ÷ 0.05) = $46,432 + $13,580 = $60,012. Each additional child adds $234 to the maximum, which adds $4,680 to the cut-off ($234 ÷ 0.05). That is why the table steps up by exactly $4,680 per child after the first. If your income sits above your household's cut-off, the credit for that benefit year is zero — but filing still matters, because next year's income may fall below the line again, and because filing keeps your other benefits and credits alive.
Reading the scale at a glance
Take a couple with two children and $55,000 of income. The excess over $46,432 is $8,568; at 5%, the reduction is $428.40; the credit is $1,358 − $428.40 = $929.60 a year, or $232.40 a quarter. Take a single person with the same $55,000. The reduction is the same $428.40, but the maximum is only $679, so the credit is $250.60 a year, or $62.65 a quarter — still above the $50 quarterly floor, so it still arrives in four payments. At $60,000, that single person's credit would be $679 − $678.40 = $0.60 a year, which falls under the quarterly floor and would in practice be paid, if anything, under the July lump-sum rule — and at $60,012 it is gone entirely. The worked examples page runs these cases in full.
Last year's thresholds, for comparison only
In the July 2025 to June 2026 benefit year, the phase-out threshold was $45,521, and the cut-offs were $56,181 for a single person with no children, $59,481 for a couple with no children, and then $63,161, $66,841, $70,521, and $74,201 for one, two, three, and four children. Those figures are superseded and must not be used for the current year. If a secondary website still quotes $45,521 or $56,181 as current, it is out of date.