An important change is in the works in Canada for people with low and moderate incomes. Starting in July 2026, the familiar GST/HST credit will be replaced by a new benefit—the Canada Groceries and Essentials Benefit. Essentially, this will be a continuation of the same support system, but with a new name and higher benefit amounts.
Source: the official Canada Revenue Agency page on the Canada Groceries and Essentials Benefit.
What is the GST/HST credit
The GST/HST credit is well known to many Canadians. It is a non-taxable quarterly payment that the Canada Revenue Agency automatically issues to individuals and families with lower incomes to partially offset the GST or HST taxes they pay in their daily lives. For many families, it’s not a huge amount, but it helps cover basic expenses: groceries, transportation, household items, children’s needs, and other daily costs.
What is the Canada Groceries and Essentials Benefit
Now the federal government is moving to a new program—the Canada Groceries and Essentials Benefit, or CGEB for short. The name clearly indicates what this assistance is intended for: groceries and essential items. This is not a separate application for “food money,” but an updated federal payment that will replace the GST/HST credit and be provided to those who meet the program’s eligibility criteria.
The main change is that the benefit amounts are set to increase. According to official information from the CRA, quarterly payments under the new program will increase by 25% over five years—from 2026 to 2031. At the same time, the structure of the benefit will remain the same as that of the GST/HST credit: eligibility will be determined based on tax returns, family status, income, and the number of children.
Do you need to submit a separate application
For most people, there is no need to apply separately for the Canada Groceries and Essentials Benefit. The CRA will determine eligibility automatically after you file your tax return. That is why the main requirement remains simple: you must file taxes every year, even if you had no income or your income was very low. If you do not file a return, payments may not be issued or may be temporarily suspended.
When will regular payments begin
The first regular payments under the new program are scheduled to begin in July 2026. Payments for the period from July 2026 to June 2027 will be calculated based on information from the 2025 tax return. This means that the 2025 tax return will be key to determining the amount an individual or family can receive in the first year of the CGEB.
According to official data, for the period from July 2026 to June 2027, the maximum amount could be up to $679 for a single person, up to $890 for a married couple or a couple in a common-law relationship, and up to $234 for each child under 19. The final amount will depend on income and family situation.
One-time additional payment before the program launches
Before the new program launches, Canadians who were eligible for the GST/HST credit in January 2026 will also receive a one-time additional payment. Payments will begin on June 5, 2026. This payment will amount to 50% of the annual GST/HST credit for the period from July 2025 to June 2026. For example, if the annual GST/HST credit was $400, the one-time top-up will be $200.
The CRA explains that this one-time payment is transitional support ahead of the launch of the Canada Groceries and Essentials Benefit. It is intended to help people cover daily expenses even before regular payments under the new program begin in July. The money will be delivered in the same way as other CRA payments: via direct deposit or paper check if direct deposit is not set up.
To receive the one-time payment, it is important that the person has filed a 2024 tax return and is eligible for the GST/HST credit in January 2026. If the return has not yet been filed, the CRA advises doing so, even if there was no income. After reviewing the return, the agency will determine whether the person is eligible for the payment.
What Newcomers to Canada Need to Know
There is a specific detail for newcomers to Canada. In most cases, there is no need to file a separate application for the GST/HST credit or the upcoming CGEB, but new Canadian residents may need to file Form RC151 in their first year of becoming residents for tax purposes. If the family has children, additional forms related to the Canada Child Benefit may be required.
This news is important for Ukrainians in Canada because many newly arrived families are currently in the adjustment period: renting a home, groceries, transportation, child-related expenses, job hunting, education, or retraining. Even small regular payments can make a difference, especially if the family is living on a single income or is just starting to get back on its feet financially.
This is not a grocery card or a voucher
At the same time, it is important not to confuse this payment with a separate grocery card or a special voucher. The Canada Groceries and Essentials Benefit is a cash payment from the CRA that will be issued quarterly. The recipient decides how to use this money. The program is named this way solely to highlight its purpose—to help with basic living expenses.
Another important point: this benefit is not taxable income. That is, it does not need to be included as regular income on your tax return. It is also specifically designed to support people with low and moderate incomes, so high-income households typically do not receive these payments or receive significantly smaller amounts.
How to Check Payment Status
If you want to check whether you’ll receive a payment, it’s best to log in to your CRA My Account. There you can view the status of benefits and credits, direct deposit details, tax returns, and upcoming payments. It’s also important to make sure the CRA has your current address, marital status, and bank account information. If this information is out of date, your payment may be delayed or sent to the wrong account.