If you are wondering whether you are considered low income in Canada, the answer depends on which definition you are using. Governments, researchers, and benefit programs do not all use the same threshold. Your city, family size, and income source also matter.
The short answer
You may be considered low income if your household income is well below the national median and does not comfortably cover basic costs like housing, food, transportation, and utilities in your area.
Common low-income measures in Canada
| Measure | What It Means |
|---|---|
| Low Income Measure (LIM) | Income below 50% of median adjusted household income |
| Market Basket Measure (MBM) | Official poverty line based on cost of essentials |
| Program-specific thresholds | Used for benefits like GIS, GST credit, and housing supports |
For personal planning, the most practical test is often whether your income sits near these thresholds and your essentials leave little room for savings or resilience.
Household size matters a lot
| Household Type | Low Income Threshold Tends To Be |
|---|---|
| Single adult | Lowest threshold |
| Single parent with child | Higher |
| Couple with 2 children | Much higher |
A salary that is manageable for one adult may be low income for a family of four.
Rough examples: when income may be considered low
These are broad illustrations, not official program thresholds.
| Household Type | Income That May Fall in Low-Income Range |
|---|---|
| Single adult | roughly under $25,000 to $35,000 |
| Couple, no children | roughly under $35,000 to $45,000 |
| Family with 2 children | roughly under $45,000 to $60,000 |
Expensive urban areas can push the practical threshold higher.
Location changes the answer
| Location Type | Practical Low-Income Pressure |
|---|---|
| Smaller city / rural area | Lower housing costs may stretch income further |
| Major city | Rent and transport costs can make moderate income feel low |
| Toronto / Vancouver | Practical pressure is often highest |
Someone earning $45,000 in a small Prairie city may not feel low income in the same way as someone earning $45,000 in downtown Toronto.
Are you low income for benefits?
Different programs use different thresholds.
| Program | Uses Low Income? |
|---|---|
| GST/HST credit | Yes, low to moderate income |
| GIS | Yes, low income seniors |
| Canada Child Benefit | Income-tested |
| Provincial housing and support programs | Often yes |
So you may be considered low income for one program and not another.
Signs your income may be in the low-income range
You may be low income if:
- rent or housing consumes a very large share of your income
- you struggle to cover food, utilities, and transportation consistently
- you qualify for multiple income-tested benefits
- you have little or no ability to save even with careful budgeting
Low income vs middle class
If you are unsure where you fall, compare this page with am I considered middle class in Canada.
Bottom line
You may be considered low income in Canada if your household income falls near recognized low-income thresholds after accounting for household size and location. There is no single national number, but if your income leaves very little room after essentials and you qualify for multiple income-tested benefits, the answer is often yes.
Key low-income thresholds and programs (2026)
Low Income Measure (LIM)
Statistics Canada’’s LIM is the most commonly used poverty measure: 50% of median adjusted household income. The 2026 after-tax LIM is approximately:
| Household size | After-tax LIM threshold |
|---|---|
| 1 person | ~$26,000 |
| 2 people | ~$36,800 |
| 3 people | ~$45,000 |
| 4 people | ~$52,000 |
Low Income Cut-Off (LICO)
The LICO is an older measure based on spending 63%+ of income on food, shelter, and clothing. The 2026 before-tax LICO for a single person in a city of 500,000+ is approximately $29,000.
Market Basket Measure (MBM) — Canada’’s official poverty line
The MBM measures whether a household can afford a specific basket of goods and services. In 2026, the MBM threshold for a family of two adults and two children is approximately $50,000–$60,000 depending on the region.
Income-tested benefits you may qualify for at low income
| Benefit | Eligible if… | Approximate maximum annual value |
|---|---|---|
| GST/HST Credit | Income under ~$54,000 | ~$680/individual, ~$1,360/couple |
| Canada Child Benefit | Family income under ~$120,000 with children | Up to $7,787/child under 6 |
| Ontario Trillium Benefit | Ontario resident, low to moderate income | Up to ~$1,500/year |
| GIS (Guaranteed Income Supplement) | OAS recipient with low income | Up to ~$1,065/month |
| Canada Workers Benefit | Working income, low income | Up to ~$1,518 (single) |
Frequently asked questions
Is $40,000 considered low income in Canada? At a national level, a single person earning $40,000 after tax is near or just above the Low Income Measure. In rural areas, $40,000 provides adequate living standards; in Toronto or Vancouver, $40,000 is genuinely financially tight. Eligibility for income-tested benefits depends on family size and province.
Does income include government benefits? For most benefit eligibility tests, CRA uses net income from line 23600 of your T1. This includes employment income, EI, CPP, OAS, RRSP withdrawals, and some other sources — but excludes non-taxable amounts like the GST credit and CCB. GIS eligibility uses a specific income test that excludes OAS.