Compliance
Navigating Canada’s GST Credit Enhancements: What Non-Residents and Families Should Know
Significant increases to the GST/HST credit are happening mid-2026; here’s how they affect eligibility, amounts, and timing for families and non-resident filers.
By NomadicTax Research Team • 5-8 min read • June 2, 2026
## What’s Changing
- The Canadian government passed **An Act to amend the Income Tax Act (Bill C-19)**, which increases the maximum annual **Goods and Services Tax/Harmonized Sales Tax Credit (GSTC)** amounts by **50 %** for the **2025-2026 benefit year**. Starting **July 2026**, the maximum amounts will be increased by **25 %** over a five-year period. ([publications.aws.tpsgc-pwgsc.cloud-nuage.canada.ca](https://publications.aws.tpsgc-pwgsc.cloud-nuage.canada.ca/site/fra/9.959940/publication.html?utm_source=openai))
- These increases are part of the **Canada Groceries and Essentials Benefit**, introduced in the Spring Economic Update 2026 to make essential costs more affordable. ([budget.canada.ca](https://budget.canada.ca/update-miseajour/2026/report-rapport/intro-en.html?utm_source=openai))
## Who Is Affected
- **Low and modest income Canadians** who already qualify for GST/HST credit payments.
- **Families, singles**, particularly with dependents — the more people in the household, the larger the total benefit under the new levels.
- **Non-residents or newly resident individuals** — eligibility criteria based on residence and tax filing status still apply. Unfamiliar ties or deeming rules could affect access.
- Individuals with **medical conditions** who claim **Disability Tax Credit** benefits will experience additional support via concurrent increases in benefits and tax credit thresholds. ([budget.canada.ca](https://budget.canada.ca/update-miseajour/2026/report-rapport/pdf/update-miseajour2026-eng.pdf?utm_source=openai))
## Amounts & Timeline
- As of **July 2026**, the 25 % increase kicks in for five years; in **June 2026**, a **one-time top-up** equivalent to **50 per cent** increase for 2025-26 is being issued. ([budget.canada.ca](https://budget.canada.ca/update-miseajour/2026/report-rapport/intro-en.html?utm_source=openai))
- Example: A single person could receive up to **$950** this year under the combined increase and top-up. A family of four could receive up to **$1,890** for 2025-26. Subsequent years drop to roughly **$700** for singles and **$1,400** for a family of four annually. ([budget.canada.ca](https://budget.canada.ca/update-miseajour/2026/report-rapport/intro-en.html?utm_source=openai))
## Eligibility & Filing Requirements
- Must file your **2025 Income Tax and Benefit return** to receive payments and credits, even if your income is low or zero.
- Be aware of **residency status**: Non-residents or deemed residents might have different eligibility thresholds. Use CRA guides for non-residential rules. ([canada.ca](https://www.canada.ca/en/revenue-agency/services/forms-publications/tax-packages-years/general-income-tax-benefit-package/non-residents/5013-g/guide-non-residents-deemed-residents-canada-completing-your-return.html?utm_source=openai))
- Keep information current with CRA: address, marital status, dependents, and any changes that could affect your credit eligibility.
## Planning Tips & Examples
- Families should check if they already receive GSTC payments via CRA MyAccount and ensure dependents are included.
- Non-resident Canadian citizens, newcomers, or persons returning to Canada should clarify their date of residence to maximize eligibility.
- If your household suffers from a disability, maximizing use of the Disability Tax Credit can increase benefit impact.
**Example:**
- Single, working and eligible: under old GSTC would receive $543; with 25 % increase plus July 2026 top-up, total is $950.
- Family of four: old credit $1,086 → after increase plus top-up, $1,890 in 2025-26; then $1,400 annually after.
## What to Do Now
1. File your 2025 tax return before the deadline (April 30, 2026 or June 15 if self-employed) to qualify for the changes. ([canada.ca](https://www.canada.ca/en/services/taxes/income-tax/personal-income-tax/get-ready-taxes.html?utm_source=openai))
2. Use CRA tools to estimate your credit under the new regime—especially household of four vs singles.
3. Update your personal information with CRA.
4. Plan for budgeting the benefit flows: top-up in June 2026, then elevated but lower permanent increase beginning July.
*Author: NomadicTax Research Team | Category: Compliance*