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The Canada Dental Care Plan (CDCP) helps many Canadians pay for dental care. But not everyone qualifies, and how much you’ll pay depends on your Adjusted Net Family Income (AFNI).

Understanding AFNI is important. It helps you know:

• If you're eligible for the CDCP
• How much of your dental costs will be covered
• What your share of the cost (co-payment) might be

Let’s break it down.

What Is Adjusted Net Family Income (AFNI)?

AFNI is your household income after the Canada Revenue Agency (CRA) applies certain deductions.

It includes the income of:

• You
• Your spouse or common-law partner (if you have one)

This is how the government figures out what your family can afford to pay.

Key Points:

• It’s a family total: Your income and your spouse/partner’s income are combined.
• It’s “adjusted”: Some deductions are taken off your total income (like RRSP contributions or union dues).
• It’s based on your tax return: The CRA uses your most recent filed return (and your spouse’s, if applicable) to figure out your AFNI.

How Is AFNI Calculated?

The CRA does the full calculation, but here’s a simple version:

1. Start with your Net Income (Line 23600 on your tax return).
2. Adjust that income based on CRA rules (some amounts are added or subtracted).
3. Add your spouse/partner’s adjusted income (if you have one).

The result is your Adjusted Net Family Income.

Note: Both you and your spouse/partner must file taxes each year so the CRA can calculate your family’s AFNI.

CDCP Eligibility and Coverage: How AFNI Affects You

Your AFNI decides two things:

• Whether you qualify for the CDCP
• What percentage of dental costs the plan will cover

Adjusted Net Family Income	Eligibility	You Pay (Co-Payment)	CDCP Pays
Less than $70,000	Eligible	0% (You pay nothing)	100%
$70,000 to $79,999.99	Eligible	40%	60%
$80,000 to $89,999.99	Eligible	60%	40%
$90,000 or more	Not eligible	N/A	N/A

Example:
If your AFNI is $75,000 and a dental service costs $100, you’ll pay $40, and the CDCP pays $60.

What Income Is Included in AFNI?

Here’s a general guide to what the CRA may include or exclude when calculating AFNI.

Common types of income that ARE included:

• Employment income (T4)
• Self-employment income
• CPP, OAS, and other pensions
• Investment income (interest, dividends, capital gains)
• Rental income
• Employment Insurance (EI) benefits
• Workers’ compensation
• Social assistance
• Some child care and disability benefits
• Foreign income

Common types of income that are NOT included:

• Canada Child Benefit (CCB)
• GST/HST credit payments
• Provincial tax credits
• One-time lump sum payments from government benefits
• The Disability Tax Credit (this is a credit, not income)

Tip: Check your Notice of Assessment for the most accurate info about your net income.

Why Your Tax Return Matters

The CRA uses the info from your most recent tax return to calculate your AFNI and check your CDCP eligibility. Usually, your eligibility for a year is based on your income from the year before.

Example: For 2024 CDCP coverage, the CRA uses your 2023 tax return.

What If Your Income Changes?

• If your income goes down (job loss, retirement, etc.), you might become eligible or pay less.
• If your income goes up, you might have to pay more—or you may no longer qualify.

Your CDCP status is not permanent. It’s checked every year based on your latest tax return.

What You Should Do

• File your taxes every year, on time—both you and your spouse/partner (if applicable)
• Keep track of your income and deductions
• Talk to a financial advisor if you’re not sure what counts toward AFNI

Filing your taxes is more than just a yearly chore—it’s how the government decides if you qualify for important programs like the CDCP.

Bottom Line

Your Adjusted Net Family Income is the key to your CDCP eligibility and coverage. Knowing how it works helps you plan for dental care costs and avoid surprises.

Disclaimer: This information is for general guidance only. It is not tax or financial advice. For personal help, speak to a qualified tax professional or visit the official CRA and Service Canada websites.

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Dentist St. Albert