Priya works part-time at an Ottawa grocery store. A colleague mentions an Ontario credit worth up to $875. Priya has employment income, but she shares a household with a partner whose income is higher. The calculation needs both returns.
Ontario's Low-income Individuals and Families Tax credit, usually called LIFT, reduces Ontario personal income tax. It is non-refundable and does not reduce the Ontario health premium. The advertised maximum is not a separate $875 payment promised to every low-income worker. Ontario's credit overview.
Start with employment income and residence
For the ordinary 2025 claim, you must have been resident in Canada at the beginning of the year, resident in Ontario on December 31 and have employment income. Check the listed exclusions, including bankruptcy, Ontario additional minimum tax and specified periods of imprisonment. 2025 eligibility instructions.
The calculation uses employment income from lines 10100 and 10400. Self-employment profit alone does not supply the employment-income base for LIFT. Someone who has both wages and business income still needs the complete income calculation; the business income may affect the reduction.
Calculate the maximum, then the reduction
Under the rules applying from 2022 onward, the starting amount is the smaller of $875 and 5.05% of employment income.
Reduce it by 5% of the larger of:
- your adjusted individual net income above $32,500; or
- your adjusted family net income above $65,000.
Use zero where the relevant income does not exceed its threshold. Use Schedule ON428-A to calculate adjusted net income; it is not always simply the net-income number copied from line 23600. The schedule makes specific adjustments for UCCB and RDSP amounts. Schedule ON428-A.
See how a partner's income changes Priya's result
Suppose Priya has $28,000 of employment income and $28,000 of adjusted net income. Her partner's adjusted net income is $43,000. Their family total is $71,000.
| Step | Amount |
|---|---|
| 5.05% of $28,000, capped at $875 | $875 |
| Individual income above $32,500 | $0 |
| Family income above $65,000 | $6,000 |
| 5% of the larger excess | $300 |
| $875 less $300 | $575 |
Priya's calculated credit is $575 before considering the Ontario tax available to reduce. Her own income being below $32,500 does not remove the family-income test. Her partner may calculate a separate LIFT credit if eligible; the two people do not split one combined $875 allowance.
Check the final tax result
The schedule result goes to line 62140 of ON428. If only $400 of the applicable Ontario tax remains before LIFT, a $575 calculated credit cannot create an extra $175 payment. It can reduce that tax to zero. A refund can still arise from tax already withheld during the year, but that is part of reconciling the whole return.
Keep the schedule with the two income calculations. Priya can then see whether a changed result came from her wages, her partner's income or the amount of tax available to reduce, rather than assuming the software forgot the credit.
Checked October 20, 2026, using the 2025 form and Ontario's current rules.
