The Canada Groceries and Essentials Benefit (Formerly known as GST)
What's New with the Canada Groceries and Essentials Benefit in 2025–2026
The Canadian government has announced significant changes to help Canadians manage rising costs of groceries and essentials:
Bigger Payments Starting This Year:
Regular benefit payments are increasing by 25% for five years, beginning in July 2026
A special one-time payment (equivalent to a 50% increase) is coming this year
These increases mean more money back in your pocket every quarter
Real Impact on Your Household:
A family of four will receive up to $1,890 this year, then about $1,400 annually for the next four years
A single person will receive up to $950 this year, then about $700 annually for the next four years
Over 12 million Canadians will benefit from these increases
Automatic Enrollment Starting 2026: The government is introducing Automatic Federal Benefits starting in the 2026 tax year to ensure up to 5.5 million low-income Canadians automatically receive the benefits they qualify for by the 2028 tax year, no extra paperwork required.
Read more here about the Canada Groceries and Essentials Benefit increase
Understanding the Canada Groceries and Essentials Benefit: What It Is and How It Works
The Canada Groceries and Essentials Benefit (formerly known as the GST/HST Credit) is a tax-free quarterly payment that helps individuals and families with low to modest incomes offset the GST or HST they pay on everyday purchases.
Think of it as the government giving you money back to help cover the cost of groceries, rent, utilities, and other essentials. You don't need to pay it back, and it won't affect your other benefits.
How the Benefit Works:
Payments are made automatically every three months (quarterly)
The money goes directly into your bank account via direct deposit
The amount you receive depends on your family income, marital status, and number of children
It's completely tax-free
Who Qualifies for the Canada Groceries and Essentials Benefit?
You may be eligible if you meet these basic requirements:
Residency Requirements:
You're a Canadian resident for income tax purposes
You're 19 years or older, OR you're under 19 and have (or had) a spouse or common-law partner, or you're (or were) a parent living with your child
Income Considerations: The benefit is designed for low to modest-income households. Your eligibility and payment amount are based on your adjusted family net income from your previous year's tax return.
Important: You don't need to apply separately for this benefit. When you file your annual tax return, the Canada Revenue Agency (CRA) automatically determines if you qualify and calculates your payment amount.
How Do You Apply for the Canada Groceries and Essentials Benefit?
In most cases, as long as you file your yearly taxes, you are eligible to receive the tax-free payment from the government, even if you have no income to claim from that previous year. There is no specific form for the tax credit program; your filed taxes are your application.
The Canadian government looks at your family net income as well as the number of children you have in order to determine the amount you are eligible to receive four times a year.
How Much Can You Receive? Understanding Your Payment Amount
The amount you receive depends on your adjusted family net income, marital status, number of children under 19, and whether you qualify for additional supplements.
Payment Calculation Example:
Maria's Situation: Maria is a single parent with two children, ages 8 and 12. She works part-time earning $28,000 annually. With the upcoming increases, she'll receive up to $1,890 this year (including the one-time payment), helping her manage grocery bills and essential expenses. In following years, she can expect about $1,400 annually in support.
David and Jennifer's Situation: David and Jennifer are a married couple with no children and a combined annual income of $42,000. They'll see increased payments starting this year, with the one-time boost providing extra support to help with rising living costs.
2026 Canada Groceries and Essentials Benefit Payment Dates
Mark these dates on your calendar so you know when to expect your payments:
Upcoming Payment Schedule:
January 2026 – Q1 2026 payment
April 2026– Q2 2026 payment
July 2026 – Q3 2026 payment (first payment with 25% increase)
October 2026 - Q4 2026 payment
Special One-Time Payment: The one-time payment equivalent to a 50% increase is being provided this year. The specific payment date will be confirmed by the CRA.
How the Government Is Making Essentials More Affordable
The expanded Canada Groceries and Essentials Benefit is part of a broader effort to help Canadians with the cost of living:
Tackling Food Costs and Supply Chain Issues:
$500 million from the Strategic Response Fund to help businesses address supply chain disruption costs
$150 million Food Security Fund for small and medium enterprises
$20 million to the Local Food Infrastructure Fund supporting food banks
National Food Security Strategy to strengthen domestic food production
Immediate expensing for greenhouse buildings to lower food production costs
Unit price labelling and Competition Bureau support for food supply chain monitoring
Additional Tax Relief Measures:
Middle-class tax cut from 15% to 14% (effective July 1, 2025), saving up to $420 per person or $840 for two-income families annually
GST eliminated on new homes up to $1 million for first-time buyers
Federal consumer carbon tax cancelled (effective April 1, 2025), reducing gas prices by up to 18 cents per litre
National School Food Program made permanent, saving participating families with two children approximately $800 annually
Pro-competition measures in telecom and financial sectors to reduce prices and fees
Provincial and Territorial Programs for HST/GST Credit in Canada
Now, there are also specific tax credit programs that differ from province to province and these annual payments are added to the groceries and essentials credit amount you would already be receiving. You do not have to apply separately for these specific programs, you will automatically be enrolled in them once you qualify for the tax-free payment plan from the Canadian Government.
Here are the provincial payment programs and how much you could receive annually from each. Please note that amounts are subject to change based on various criteria, including individual and family incomes:
BC Climate Action Tax Credit
$504 for you
$252 for your spouse or common-law partner (or for the first child in a single parent family)
$126 for each child (except the first child in a single parent family)
Saskatchewan Low-Income Tax Credit (SLITC)
$429 for an individual
$429 for a spouse or common–law partner (or for an eligible dependant)
$169 per child (maximum of two children)
Max annual credit of up to $1,196 per family
Ontario Sales Tax Credit
Single: $371
Married or Common-Law: $371
Per child: $371
New Brunswick Harmonized Sales Tax Credit (NBHSTC)
The NBHSTC is fully funded by the Province of New Brunswick and aims to pay low- and modest-income households a tax-free amount to help offset the increase of sales tax in the province.
Single: up to $300
Married or Common-Law: up to $300
Per child: up to $100
In a single-parent home, the first child receives: up to $300
PEI Sales Tax Credit
The PEI sales tax credit is fully funded by the Province of Prince Edward Island and aims to pay low- to moderate-income households a tax-free amount to help offset the increase of sales tax in the province.
Single: $110
Married or Common-Law: $55
Nova Scotia Affordable Living Tax Credit
The province of Nova Scotia also offers a tax-free payment offered to residents with low to moderate incomes to help offset the increase in the HST and to help increase income for families (and individuals) in need.
Single: $255
Married or Common-Law: $255
Per child: $60
Newfoundland and Labrador Income Supplement
This tax-free payment fully funded by the Newfoundland and Labrador provincial government, is an amount that is calculated based on your adjusted family income and current family situation. The payment is meant to help low income singles and families, as well as persons with disabilities, who may feel pressure from the provincial tax regulations.
$520 if you are a single individual
$589 if you have a spouse or common-law partner
$231 per child under 19 years of age
Newfoundland and Labrador Senior's Benefit:
Single senior: up to $1,551
Married or Common-Law: up to $1,551
Frequently Asked Questions About the Canada Groceries and Essentials Benefit
Do I need to apply for the Canada Groceries and Essentials Benefit?
No. When you file your annual tax return, the CRA automatically assesses whether you qualify and calculates your payment amount. Just make sure you file your taxes every year, even if you have little or no income.
What's the difference between the GST Credit and the Canada Groceries and Essentials Benefit?
They're the same program. The government renamed the GST/HST Credit to better reflect its purpose, helping Canadians afford groceries and essential items.
Will the increased payments affect my other benefits?
No. The Canada Groceries and Essentials Benefit is tax-free and doesn't count as income. It won't reduce your Canada Child Benefit, Employment Insurance, provincial assistance, or other government support.
What if my income changed from last year?
Your benefit is based on your previous year's tax return. If your income decreased and you now qualify for a higher benefit, you'll see the adjustment after you file your current year's taxes.
I didn't receive my payment. What should I do?
Confirm you're registered for direct deposit and that your banking information is current. Check that you filed your tax return for the previous year. If everything is up to date and you still haven't received your payment within 10 business days, contact the CRA at 1-800-387-1193.
Can I receive the Canada Groceries and Essentials Benefit if I'm receiving other government benefits like ODSP or EI?
Yes. The benefit is separate from other programs. Many Canadians receiving Employment Insurance, Ontario Disability Support Program (ODSP), Alberta Income for the Severely Handicapped (AISH), CPP Disability, or other provincial assistance also qualify.
When will I start seeing the increased payment amounts?
The one-time payment equivalent to a 50% increase is being provided this year (specific date to be confirmed by CRA). The ongoing 25% increase to regular quarterly payments begins with the July 2026 payment and continues for five years.
What is Automatic Federal Benefits and how does it help me?
Starting in the 2026 tax year, up to 5.5 million low-income Canadians will automatically receive the benefits they qualify for by the 2028 tax year, including the Canada Groceries and Essentials Benefit and the Canada Child Benefit. This means fewer applications and less paperwork.
What happens if I move or change my bank account?
Update your address and direct deposit information with the CRA immediately through your My Account online portal or by calling 1-800-387-1193.
About the author
