Welfare Cliff Calculator — Does Earning More Make You Poorer?

The welfare cliff is invisible but real. Calculate your TRUE net income at every salary level — including all benefits, tax credits and subsidies. US, UK, Canada, Germany.

🇺🇸 USA🇬🇧 UK🇨🇦 Canada🇩🇪 Germany📊 Visual cliff chart

💸 The Welfare Cliff Calculator

⚠️ The welfare cliff is real: earning $1 more can cost you thousands in lost benefits. This tool shows your TRUE net income at every salary level.

📊 Net Income vs Gross Income (the cliff visualized)

Each bar = your net income (after tax + benefits) at that salary level. Notice where it DROPS.

🎯 Your Breakeven Point

💡 The breakeven salary is where earning more ALWAYS means more net income. Below this, a raise can make you poorer.

⚠️ Tous les calculs sont des estimations basées sur les règles de 2026. Consultez un professionnel pour des décisions importantes. Mis à jour: 2026-04-28

FAQ

What is the welfare cliff?

The welfare cliff occurs when earning more money causes a loss of benefits greater than the income gained. A 5 000$ raise can leave a family 3 000$ worse off net after losing SNAP and Medicaid.

Which benefits have the sharpest cliffs?

Medicaid has the sharpest cliff at 138% FPL. SNAP phases out more gradually. EITC has a complex curve that peaks then decreases. Childcare subsidies can also create severe cliffs.

How can I avoid the welfare cliff?

Strategies include timing raises strategically, maximizing pre-tax deductions like 401k to reduce MAGI, and using bridge programs. Some states have smoother phase-outs than others.

Official sources & verification

Legal basis: US HHS Federal Poverty Guidelines & SNAP Cliff Thresholds (2026).

Parameters verified 2026-09-27 · machine-readable: params.json · signed registry: legion-api.com/thresholds