What the CGEB means for tax planning
Beginning in July 2026, the CGEB replaces the GST/HST credit, increasing its amount by 25% for the next five years. Further, the government is issuing a one-time payment this spring equal to 50% of the 2025-26 annual GST Credit value.(canada.ca) This benefit isn’t taxable.
| Household type | Amount this year | Annual value in future years |
|---|---|---|
| Family of four | up to $1,890 | about $1,400/year |
| Single person | up to $950 | roughly $700/year |
How to adjust your financial strategy
- Align income timing: Optimal benefit eligibility depends on filing your 2025 tax return fully and on time—you’ll be automatically assessed for CGEB eligibility. If you're planning large one-time income or deductions for 2025 or 2026, see how they affect taxable income and benefit phase-ins.
- Use non-refundable tax credits: The value of most non-refundable credits is now tied to the first marginal rate of 14% (reduced from 15% as of July 1, 2025).(canada.ca)
- Track provisional benefits: The one-time top-up means this year’s support spikes; budget accordingly for the return period when annual payments settle to the “new steady state.”
Examples that illustrate the change
- Scenario 1: A family of four earned income such that they previously qualified for a GST Credit of $1,500 annually. With the CGEB, they might receive up to $1,890 this year, then about $1,400 annually thereafter.
- Scenario 2: Single low-income individual earning $25,000/year; currently getting $700 in GST credits—under CGEB could see up to $950 this year, then about $700/year in following years.
Actionable steps before July 2026
- File your 2025 tax return early to ensure eligibility and to claim any owed top-ups.
- Review withholding/tax instalments, especially if income fluctuates, since non-refundable credit values will depend on your taxable income level.
- Budget the transition—don’t assume higher support throughout, plan for drops post top-up.
Bottom line: The CGEB means more support for many Canadians. Understand eligibility periods, timing of payments, and how your taxable income influences benefit value so you can maximize support during the transition.