What’s happening with the GST/HST Credit?
- Renamed: Starting July 3, 2026, the GST/HST Credit is now called the Canada Groceries and Essentials Benefit (CGEB). (canada.ca)
- Payment increase: Quarterly payments will increase by 25% for five years, beginning in July 2026. (budget.canada.ca)
- One-time top-up: On June 5, 2026, eligible recipients got a one-time payment equal to 50% of their annual GST/HST Credit for the July 2025–June 2026 period. (canada.ca)
- Benefit reset timeline: Eligibility and amounts will now be based on your 2025 tax return for payments beginning in July 2026. (canada.ca)
Who benefits — and who needs to take action
Eligible recipients
- Residents of Canada who filed their 2024 tax return and were entitled to the January 2026 GST/HST Credit payment. (canada.ca)
- Low- and modest-income individuals and families—about 12+ million Canadians. (budget.canada.ca)
What recipients should do
| Action | Why it matters |
|---|---|
| File your tax returns on time (for 2024 & 2025) | Determines eligibility and ensures maximum credit amounts. Late filing delays payments. (canada.ca) |
| Keep your CRA account current | Changes in marital status, children, residency or net income can affect benefit amount. (canada.ca) |
| Check notices of determination | These tell you how much you’ll receive each quarter. (canada.ca) |
| Share banking info | Direct deposit speeds up payments and avoids delays for cheques. (canada.ca) |
Examples to illustrate
-
Single individual with no children, adjusted family net income from 2025 such that they qualify: maximum benefit July 2026 to June 2027 could be about $950/year. That includes the one-time June top-up and increased quarterly payments. (canada.ca)
-
Family of four with two children: up to about $1,890/year under the new benefit in 2026. (budget.canada.ca)
What this means for your tax planning in 2026
- Budgeting: Expect more stable supports—quarterly payments will be higher and predictable for the next five years. Use this in cash flow planning.
- Filing on time: Even if you had little income, file anyway—this ensures you’re considered for the CGEB and can receive retroactive amounts.
- Watch income thresholds: Benefit amounts phase out as adjusted family net income rises. Know where you stand so you're not surprised.
What this doesn’t change
- The structure (eligibility, frequency) remains similar to the old GST/HST Credit.
- Recipients who missed out on filing 2024 — you may still retroactively gain eligibility by filing late, but payments won’t arrive until the CRA completes assessments. (canada.ca)
The CGEB marks a significant move by the Government of Canada toward making affordability more accessible for low- and modest-income households. If you're eligible, understanding how it works now means you won’t leave money on the table next July.