CGEB for Seniors — How CPP, OAS, and GIS Affect Your Payment
Seniors are one of the largest groups of CGEB recipients. If you're 65+ and living mostly on CPP, OAS, GIS, and modest investment income, you almost certainly qualify — and the new benefit pays meaningfully more than the old GST/HST credit. This guide explains exactly how CPP, OAS, and GIS affect your CGEB, with worked examples for typical retirement incomes.
The Short Answer
CGEB looks at your adjusted family net income (AFNI) from your 2025 tax return. CPP and OAS are taxable and fully count toward AFNI. GIS is non-taxable but is added back in by the CRA for benefit calculations. The phase-out starts at ~$45,000 for singles and ~$65,000 for couples. Most seniors living on government pensions sit well below those thresholds and receive the full amount.
How Each Income Source Affects CGEB
| Income source | Counts toward CGEB? | Notes |
|---|---|---|
| CPP retirement | Yes — fully | Taxable income on T4A(P) |
| OAS pension | Yes — fully | Taxable on T4A(OAS) |
| GIS | Yes — added back | Tax-free, but counted for benefit phase-outs |
| Workplace pension | Yes — fully | Pension income split with spouse may help |
| RRIF withdrawals | Yes — fully | Each $1,000 withdrawn = $50 less CGEB above phase-out |
| TFSA withdrawals | No | Not income — never counted |
| Capital gains (taxable portion) | Yes | 50% inclusion for most taxpayers |
| Eligible dividends | Yes — grossed up | $1,000 cash = $1,380 AFNI |
Worked Example 1: Single Senior on CPP + OAS + GIS
A 72-year-old single senior receives:
- CPP: $9,600/year
- OAS: $8,800/year
- GIS: $11,400/year (tax-free, added back)
AFNI = $9,600 + $8,800 + $11,400 = $29,800. Below the $45,000 single threshold → receives full $496/year CGEB ($124/quarter), plus full GIS, plus the GST/HST credit transition top-up if applicable.
Worked Example 2: Couple With Workplace Pension
A retired couple in Ontario:
- Spouse 1: CPP $11,200 + OAS $8,800 + workplace pension $22,000
- Spouse 2: CPP $5,400 + OAS $8,800
Combined AFNI = $66,200. Just over the $65,000 family threshold by $1,200. CGEB reduction = $1,200 × 5% = $60. Annual CGEB = $650 − $60 = $590/year ($147.50/quarter).
Worked Example 3: Single Senior With Modest RRIF Drawdown
A 78-year-old single senior:
- CPP $10,400 + OAS $8,800 = $19,200
- RRIF minimum withdrawal: $7,500
- Total AFNI: $26,700
Below the $45,000 threshold → full $496/year CGEB. The RRIF drawdown does not push them into phase-out.
Pension Income Splitting Can Boost Your CGEB
If one spouse has a much higher pension (workplace pension or RRIF income), pension income splitting can move up to 50% of eligible pension income to the lower-earning spouse. This rarely changes your combined AFNI, but in some edge cases — particularly when one spouse would otherwise be just below their personal phase-out — splitting can increase the overall household CGEB. Most CRA-certified tax software will optimize this automatically. Manual filers should run the return both ways.
Why Seniors Benefit Most From the CGEB Change
- Larger maximum payments — singles see roughly +46% versus the old GST/HST credit.
- Wider phase-out thresholds let more middle-income seniors stay at the maximum.
- Same automatic delivery — no application, no paperwork, just file your taxes.
- Doesn't reduce GIS, doesn't trigger OAS clawback, doesn't count as income for any other federal benefit.
What to Do This Spring
- File your 2025 return by April 30, 2026. Even if your only income is CPP + OAS + GIS, you must file every year.
- If you turned 65 in 2025, make sure you've also applied for OAS — it's not automatic.
- Verify direct deposit, address, and marital status in CRA My Account and Service Canada's My Service Canada Account (MSCA).
- Use our CPP Calculator and RRIF Calculator to project next year's AFNI before making big withdrawals.
- Mark July 5, 2026 — first CGEB deposit lands.
Source: Canada Revenue Agency — Income tax and benefit guide for seniors and Department of Finance Canada — Federal Budget 2026 (canada.ca).
Related Reading
Related CGEB resources
The full Canada Groceries Benefit toolkit — calculators, eligibility checks, and explainers. For the complete index, visit the CGEB Hub.
- CGEB HubEverything on the new groceries benefit — start here
- CGEB CalculatorEstimate your quarterly payment
- Eligibility Checker60-second eligibility quiz
- Payment Dates2026 quarterly schedule
- CGEB Deep DivePillar guide to the program
- CGEB vs GST/HST CreditWhat changed and who's better off
- For NewcomersEligibility for PRs, work & study permits
- Late Payment HelpWhat to do if your CGEB is late
- Scam AlertsHow to spot CGEB phishing texts
Editorial disclaimer
This article is published by LoonieLabs for general information only. It is not financial, tax, legal, accounting, or immigration advice and must not be relied on as such. Rules, dollar figures, interest rates, and program eligibility change — always verify with the Canada Revenue Agency, IRCC, or a qualified professional before acting. Spotted an error? See our corrections policy. Last reviewed: April 19, 2026.
Frequently Asked Questions
Written and reviewed by Shrey Patel — Founder & Editor-in-Chief
Winnipeg, MB · Figures cross-checked against official tax & benefits sources · Last reviewed April 19, 2026 · LinkedIn
Founder of LoonieLabs · based in Winnipeg, MB · writes and reviews every page on the site I oversee every figure on this page personally — verified against primary sources (CRA, IRCC, Statistics Canada, the Bank of Canada, or the originating provincial ministry). LoonieLabs has no affiliate relationships with any bank, credit card, or immigration consultant featured on this site. Spotted a mistake? Tell us.
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