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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

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)
  • 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)

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)

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)
  • 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)

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)
  • 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)
  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

Sources

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