What it is
Family Code section 4055(b)(7) creates a rebuttable presumption that the obligor (paying parent) is entitled to a low-income adjustment (LIA) when their net disposable income per month is less than full-time minimum wage in California.
The low-income adjustment reduces the child support amount that would otherwise be calculated by the guideline formula.
The 2026 threshold
Starting September 1, 2024, the LIA threshold is based on the monthly gross income earned from full-time minimum wage at 40 hours per week, 52 weeks per year.
The current minimum wage per Labor Code section 1182.12 is $16.90 per hour effective January 1, 2026:
$16.90 x 40 hours x 52 weeks / 12 months = $2,929/month
Prior to September 2024, the threshold was adjusted annually based on the California Consumer Price Index (CCPI).
How the adjustment works
The adjustment is proportional. The lower the obligor’s net income relative to the threshold, the larger the reduction:
Reduction = guideline amount x (threshold - obligor net) / threshold
For example, if the guideline amount is $500/month and the obligor’s net is $2,000/month:
- Reduction = $500 x ($2,929 - $2,000) / $2,929 = $500 x 0.317 = $159
- Adjusted range: $341 to $500
The presumption is rebuttable, meaning the court can order a different amount if there are reasons to do so.
Important: it’s net, not gross
The $2,929 threshold applies to net disposable income (after taxes, FICA, health insurance, and other allowable deductions under FC section 4059), not gross income. A parent earning $4,000/month gross could have a net below $2,929 after deductions.
The calculator applies it automatically
The Support Split calculator detects when the obligor’s net disposable income is below the threshold and applies the low-income adjustment automatically. The results show whether LIA is applicable and the adjusted range.
Source
The Judicial Council of California maintains the current LIA threshold and historical threshold amounts going back to 1994.