Second income
Is the second income worth it?
After tax, lost benefits, and the cost of two working parents, a second income can be worth far less than the salary suggests. See what's really left.
A second earner's pay stacks on top of the first earner's tax bracket, so it's taxed at a higher rate than it looks. It also raises family net income — which claws back the Canada Child Benefit and the GST/grocery credit — and it triggers real costs like childcare and a second commute. This tool nets all of that out.
The parent who is already working.
What the second parent would earn.
Added costs of working (annual)
Net of subsidy; $10/day spaces are ~$2,600/child where available, more for infant or scarce care.
$1,816/month · the second income nets positive.
This is one input, not the decision
Whether a parent works is a personal and family choice, not a math problem — and this tool takes no side. It only shows the near-term cash, to put a real number on one part of a much bigger picture.
It does NOT value career progression, future earning power, CPP and pension accrual, RRSP contribution room, professional skills, financial independence, or personal fulfilment — all of which can far outweigh the first year's net. Childcare costs also fall sharply as children start school.
Estimate for education, not financial advice. Tax is calculated individually (Canada has no joint filing); benefit clawbacks use approximate 2026 federal figures and treat your entered income as family net income. Your situation may differ.
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