Starting July 5, 2026, the GST/HST credit is permanently replaced by the Canada Groceries and Essentials Benefit (CGEB). The new benefit, announced in the Federal Budget 2026, delivers higher quarterly payments — up to 46% more for singles and 25% more for families with two children. The transition is automatic for everyone who files a 2025 tax return.

Why the GST/HST Credit Is Being Replaced

The GST/HST credit launched in 1991 as a rebate to offset the federal sales tax burden on lower-income Canadians. While the dollar amounts were indexed to inflation, the underlying structure was never modernized. Maximum payments lagged the actual cost-of-living increases of the past five years — Canadian grocery prices alone rose roughly 22% between 2020 and 2025 according to Statistics Canada Consumer Price Index data, while the GST/HST credit grew far less.

The Canada Groceries and Essentials Benefit (CGEB) was introduced to address that gap. It uses the same quarterly delivery infrastructure and the same income-tested formula, so administratively it sits on top of the existing CRA benefit pipeline. The change is in the dollar amounts, the income thresholds, and the name — which the government adopted to better reflect what households actually spend the money on.

Key Changes at a Glance

• Higher payments: Singles go from a maximum of $340/yr to $496/yr. Families with two children move from $730 to $910.
• Per-child amount: Each additional child adds approximately $130 (vs. $86 under the old credit).
• Wider phase-out: Single phase-out begins around $45,000 of adjusted family net income (vs. ~$42,000); family phase-out begins around $65,000 (vs. ~$58,000).
• Same payment schedule: Still paid quarterly — July, October, January, and April.
• No application required: The CRA automatically enrols you if you've filed your 2025 tax return.
• Still tax-free: CGEB payments are not taxable income and don't reduce other benefits.

How the New Amounts Compare by Household Type

Worked Example: Couple With Two Kids in Manitoba

Suppose a couple in Winnipeg has an adjusted family net income of $52,000 with two children under 18. Under the old GST/HST credit, they'd receive roughly $730/year ($182.50/quarter). Under the CGEB, they receive the full $910/year ($227.50/quarter) because their income sits below the $65,000 phase-out threshold. That's an extra $180/year — roughly two weeks of grocery bills for a family of four.

For the same family at $70,000, phase-out kicks in. They'd see roughly $660/year under CGEB instead of around $480 under the old GST/HST credit — still a meaningful increase, just smaller than at the maximum.

Timeline of Key Dates

• April 4, 2026: Final GST/HST credit payment (with the one-time 50% top-up).
• April 30, 2026: Tax filing deadline. Filing your 2025 return is what triggers your CGEB enrolment.
• June 2026: CRA confirms exact 2026–2027 benefit-year amounts based on indexation.
• July 5, 2026: First CGEB payment is deposited.
• October, January, April: Subsequent quarterly payments through the 2026–2027 benefit year.

What Newcomers Need to Know

New permanent residents and study/work permit holders who became Canadian tax residents in 2025 qualify for CGEB starting July 2026, provided they file a 2025 return. If you arrived partway through 2025, your benefit is pro-rated based on the number of months you were a resident. The CRA will calculate this automatically — you don't need to apply or claim a partial year.

Common Questions

Do I need to apply? No. Filing your 2025 tax return enrols you automatically.

What if my income changed in 2025? Your CGEB is based entirely on your 2025 adjusted family net income. If your income went up significantly, your CGEB will be smaller than your last GST/HST credit. If it dropped, your payments will be larger.

Is CGEB taxable? No — CGEB is fully tax-free and doesn't appear on your T1 as income.

What if I miss the April 30 filing deadline? You'll still get CGEB once your return is processed, but your July payment may be delayed by weeks or months.

What You Should Do Now

1. File your 2025 tax return before April 30, 2026.
2. Confirm your direct deposit, marital status, and address are current in CRA My Account.
3. If you have children, ensure your CCB profile is up-to-date — CGEB uses the same household data.
4. Check our CGEB page for the full amount tables and eligibility details.
5. Use our Benefits Finder to confirm what other federal and provincial programs you qualify for alongside CGEB.

Source: Department of Finance Canada — Federal Budget 2026 (canada.ca/en/department-finance) and Canada Revenue Agency benefit administration guidance.