Learn more about the new Canada Groceries and Essentials Benefit

The GST Credit is being expanded and renamed the Canada Groceries and Essentials Benefit, with increased payments beginning in 2026.

This article covers what has been released so far, including the one-time lump sum payment and quarterly credit increases.

⚠️ IMPORTANT DISCLAIMER ABOUT ELIGIBILITY

• Specific eligibility criteria for the Canada Groceries and Essentials Benefit have not yet been released. The government has announced the payment amounts and structure, but detailed requirements regarding income thresholds, age limits, and other qualifying factors await formal legislation which will be tabled in the coming weeks.
• Throughout this article, when discussing eligibility, we are assuming the new benefit will follow the current GST Credit criteria.
  

What is the Canada Groceries and Essentials Benefit?
Who is eligible?
How much money could I get?
When do payments arrive?
Do I have to pay it back?
Do I need to apply?
Is there anything I need to do right now?

What is it?

The Canada Groceries and Essentials Benefit is the new name for the expanded Goods and Services Tax (GST) Credit. This tax credit helps low- and modest-income Canadians offset the GST and HST they pay on everyday purchases, and includes two components:

• One-time top-up payment equal to 50% of the annual amount
• 25% increase to quarterly payments for five years

Who is eligible?

Again, assuming this is based on the same criteria as the GST Credit, eligibility would require meeting all of the following conditions:

• 19 years of age or older before the payment date (with exceptions for those who have, or had, a spouse or common-law partner or are, or were, a parent living with their child)
• a resident of Canada for income tax purpose in the month before the Canada Revenue Agency (CRA) issues a payment and at the beginning of the month when the payment is issued
• recipients must file their 2024 tax return for the one-time spring 2026 payment and 2025 tax return for the ongoing payments (starting July 2026)
• your adjusted family net income must be less than the income levels below

How much money could I get?

The maximum payment amounts that have been announced are:

Single Individuals

• Up to $950 in 2026 (one-time 50% top-up + enhanced quarterly payments)
• Up to $700 annually for the following four years (2027-2030)

EXAMPLE A single person currently receiving $533 annually from the GST Credit would receive:

• Spring 2026 One-time payment of approximately $267 (50% top-up)
• July 2026 Onward Enhanced quarterly payments totaling approximately $679 annually
• Total 2026 Approximately $950

Family of Four

• Up to $1,890 in 2026 (one-time 50% top-up + enhanced quarterly payments)
• Up to $1,400 annually for the following four years (2027-2030)

EXAMPLE A couple with two children currently receiving $1,086 annually from the GST Credit would receive:

• Spring 2026 One-time payment of approximately $533 (50% top-up)
• July 2026 Onward Enhanced quarterly payments totaling approximately $1,357 annually
• Total 2026 Approximately $1,890

*Your actual payment amount will depend on your family situation and income level once final eligibility criteria are released.

When do payments arrive?

One-Time 50% Top-Up Payment

Spring 2026 (as early as possible, no later than June 2026).

• Single lump-sum payment equal to a 50% increase in the annual 2025-26 value of your GST Credit
• Based on your 2024 tax return

Enhanced Quarterly Payments

Starting July 2026.

Payments at 25% above your current level will be paid on the regular GST Credit schedule:

• July 2026
• October 2026
• January 2027
• April 2027

These enhanced quarterly payments continue through the 2030-31 benefit year. The amount you receive will be based on your 2025 tax return (filed in spring 2026).

*the payment schedule is still subject to final government approval

Do I have to pay it back?

No. The Canada Groceries and Essentials Benefit is a tax-free, non-repayable benefit, meaning:

• You do not need to repay any amount you receive
• The benefit is not taxable income
• It does not reduce other federal benefits you receive, such as
  • Canada Child Benefit
  • Old Age Security
  • Guaranteed Income Supplement
  • Canada Disability Benefit

Do I need to apply?

If you currently receive the GST credit

No, you do not need to apply.

However, if you haven't already done so, you should file your 2024 tax return to be able to receive the top-up, and you must file your 2025 tax return to receive the increased July 2026 payments.

If you do not currently receive the GST credit

If you think you might qualify but don't currently receive the GST Credit, ensure you file your tax returns. The CRA uses your tax return to determine eligibility for benefits and will issue them automatically (no application) if you qualify.

Is there anything I need to do right now?

File your tax returns.

• File your 2024 tax return (required for the spring 2026 one-time payment)
• File your 2025 tax return when due (required for enhanced payments starting July 2026)
• File even if you have no income to report. Tax filing is how the CRA assesses your eligibility for benefits.

Make sure your CRA account information is up to date.

• Current mailing address
• Direct deposit information
• Marital status
• Number of children in your care

Don't make financial decisions based on assumptions.

Until final eligibility criteria are released, do not assume you will or will not qualify based on current GST Credit rules. The new benefit may have different requirements, thresholds, or calculations.

Questions?

If you have any questions about this article, need help with filing your past or current taxes, or just want to know more about the services we offer, please contact one of our Tax Experts or complete the contact form below.