Canada Groceries and Essentials Benefit Launches with 25% Boost for Low-Income Households
Starting July 3, 2026, the federal government replaced the GST/HST credit with the new Canada Groceries and Essentials Benefit (CGEB), offering 25% higher quarterly payments for five years. All eligible households receive a one-time top-up this June, then quarterly amounts begin in July.
What Changed and When
The Canada Groceries and Essentials Benefit (CGEB) replaced the GST/HST credit in July 2026. In July 2026, there was a 25% increase to the benefit amount which will remain for 5 years from 2026 to 2031. Before the new benefit began, eligible Canadians received a one-time GST/HST credit top-up payment, starting June 5, 2026, intended to provide immediate financial support during the transition period.
Payment Amounts and Eligibility
The eligibility, payment calculation, and structure remains the same as the GST/HST credit. The new payment levels are significantly higher: Maximum payments increased by 25% per year for five years, starting in July 2026, so that a household with two adults and two kids could receive up to $1,890 in 2026 through the CGEB (including the top-up).
The CGEB uses the same eligibility criteria as the GST/HST credit, and new residents of Canada may need to apply separately using Form RC151. Entitlement for the July 2026 to June 2027 benefit year is based on information reported in a taxpayer's 2025 income tax return.
For Newcomers and Expats
If you are a new resident or expat settling in Canada with low to modest household income, filing your 2025 tax return is essential to unlock this benefit. If your family qualifies for the CGEB, you will automatically receive payments once you've filed your taxes, unless you're a new resident, in which case you may need to submit a special form. The quarterly payments—now 25% larger—provide direct tax-free cash support for groceries and essentials, making this one of the most important federal benefits to claim. Set up direct deposit in your CRA account to receive payments quickly.
Sources
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