The federal government has introduced a new financial support program aimed at helping Canadians cope with rising grocery and everyday living costs.

Called the Canada Groceries and Essentials Benefit, the program is an expanded version of the existing GST/HST credit.

It will provide extra, tax-free payments to low- and modest-income Canadians, with more money starting this spring and larger payments coming later this year.

 

What is the benefit?

In simple terms, this benefit puts extra cash in people’s pockets to help pay for groceries, household items, and other essentials.

The government has rebranded and increased the GST/HST credit to better reflect today’s higher cost of living.

 

How does it work?

Eligibility is linked directly to your tax return.

Canadians who file their income taxes automatically have their eligibility assessed, and no separate forms or applications are required.

Filing on time is essential, as failing to file could mean missing out on payments.

Income thresholds vary depending on household type. For example, in 2024:


A single person with no children qualified if their net income was below $56,181.



A single parent with four children qualified if their net income was below $74,201.


Payments decrease as income rises, ensuring the program targets Canadians who need it most and the benefit has two main parts:

1. One-time payment in spring 2026

The government plans to pay eligible Canadians the one-time top-up payment as early as possible in spring and definitely no later than June.

This payment is equal to about 50% extra on top of what you’d normally get from the GST/HST credit this year.

That means most people who qualify should see this lump sum arrive sometime between now and June, typically through automatic direct deposit (or a mailed cheque if you don’t have direct deposit with the CRA)

2. Higher ongoing payments starting July 2026

Beginning in July, regular quarterly payments will increase by 25 per cent.

These larger payments will continue for the next five years and payments are issued four times a year: July, October, January, and April.

 

Who is eligible?

Eligibility is based on income and family size, similar to the current GST/HST credit rules. In general, you must:

Even people with little or no income need to file taxes to receive the benefit.

 

How much could people receive?

The exact amount varies, but here are examples based on maximum benefit levels:


Single adults could receive roughly $950 total over the year.



Seniors on low income could receive a similar amount, helping cover food and basic needs.



A family with two children could receive up to about $1,890 over the year.


Amounts decrease as income rises.

 

How does this affect different groups?

Singles: Low-income single Canadians will see a noticeable boost, with hundreds of dollars added over the year to help with groceries and daily expenses.

Seniors: Many seniors already receive the GST/HST credit. This increase provides additional help at a time when food, utilities, and housing costs remain high.

Families with children: Families generally receive larger payments because benefits scale with household size.

This support is in addition to the Canada Child Benefit and may help offset rising food and school-related costs.

 

What the benefit does — and doesn’t — do

The program does not control grocery prices or eliminate inflation. Instead, it provides direct financial relief to help people manage higher costs.

The increased payments are currently scheduled to last five years, after which the program would need to be renewed or adjusted.

 

Why it Matters

The government says the new benefit will help Canadians manage grocery and living costs amid global economic uncertainty.

While the payments will not fully offset rising prices, they provide direct financial relief to households most affected by inflation.

 

Bottom line

The Canada Groceries and Essentials Benefit is designed to make life a little more affordable for Canadians by:


Providing a one-time bonus payment in spring



Increasing regular quarterly payments starting in July



Supporting singles, seniors, and families based on income



Automatically delivering payments to those who qualify


For many households, the extra money won’t solve everything, but it could make grocery trips and everyday expenses a bit easier to manage.

**With information from the Government of Canada

 

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