What’s Changing & Why It Matters
Canada is replacing the old GST/HST credit with the Canada Groceries and Essentials Benefit (CGEB) starting July 2026. Eligibility stays the same, but the benefit amount will increase by 25% for five years, and a one-time top-up equal to 50% of your 2025-26 GST credit is paid June 5, 2026. (canada.ca) This aims to boost affordability for over 12 million low- and modest-income Canadians. For example, a single individual can expect up to $950 this year, and a family of four up to $1,890. Over time, those amounts will settle at about $700/year and $1,400/year respectively. (canada.ca)
Action You Should Take Now
- Confirm you’ve filed your 2025 tax return on time so you don’t miss the credit eligibility or the June top-up. (canada.ca)
- If you’re new to this credit, sign up for a CRA Account if you haven’t, to receive notices and payments securely.
- Use the time before July to estimate your 2026 benefit year income so budgeting reflects the new CGEB amount.
Scenarios & Calculations
| Household Type | 2025-26 GST credit (approx.) | One-Time Top-Up (-Jun 2026) | New Annual CGEB Going Forward (after Jul 3, 2026) |
|---|---|---|---|
| Single individual | ~$400 | +$200 | ~$700 |
| Family of four | ~$1,400 | +$700 | ~$1,400–1,900 |
A family of four earning $40,000 could get nearly $1,890 this year—combining the top-up plus the first year’s boosted CGEB. (canada.ca)
Common Questions
Is your filing status important? Yes. Filing late or not filing can cause delays or loss of benefits. Missing a return still gets you the credit, but after assessment. (canada.ca)
Does this affect provinces differently? No—this is federal and affects every province and territory. Most provinces align their GST/HST credits and related policy with federal rules.
Will it affect your income tax rates or brackets? No change to brackets in CGEB; however, other measures like lowering the first marginal rate apply separately. (canada.ca)
Key Takeaways
- File on time to access new amounts.
- Benefit increases aren’t automatic for existing payments until July.
- Watch for CRA notices explaining CGEB, and adjust your budgeting for essentials accordingly.