The federal government led by Mark Carney has announced a major enhancement to the GST/HST Credit, rebranding it as the Canada Grocery and Basic Needs Benefit (CGBB). Administered by the Canada Revenue Agency (CRA), the benefit will rise 25% starting July 2026 for five years.
In addition, a one-time top-up equal to a 50% increase of the current credit will be issued in spring 2026 (no later than June), subject to royal assent. The government estimates 12.6 million Canadians could benefit.
No application is required if you file your taxes on time.
What Is the Canada Grocery and Basic Needs Benefit?
The CGBB is an enhanced version of the GST/HST Credit designed to help low- and moderate-income households cope with higher grocery and essential goods costs.
What’s Changing
- 25% permanent increase (for five years) beginning July 2026
- One-time 50% top-up paid in spring 2026
- Automatic delivery through the CRA, like the GST/HST Credit
- Indexed to inflation
Finance Minister François-Philippe Champagne said the goal is to provide immediate relief while strengthening ongoing quarterly support.
Who Is Eligible?
You may qualify if you already receive the GST/HST Credit and:
- Are a Canadian resident for tax purposes
- Are 19 or older (or meet specific criteria if younger)
- File your 2024 and 2025 income tax returns
Important Filing Rules
- To receive the spring 2026 one-time payment, your 2024 return must be filed.
- To receive the enhanced quarterly amounts from July 2026 onward, your 2025 return must also be filed.
Even if you had no income, filing is essential.
How Much Could You Receive?
Amounts depend on adjusted net family income and household composition.
2026 Examples (Including Lump Sum)
Single person (no children)
- Up to $950 in 2026, including:
- $267 one-time supplement
- $136 annual enhancement
- Up to $700 annually by 2027
Couple with two children
- Up to $1,890 in 2026, including:
- $533 one-time supplement
- $272 annual enhancement
- Up to $1,400 annually by 2027
These figures include base GST credit amounts plus enhancements.
Income Thresholds to Know
You qualify for the maximum credit if:
- Adjusted net family income is $46,432 or less
For single individuals:
- Must earn at least $23,264 to receive the full supplement
- Income above $46,432 reduces the benefit gradually
- Fully phased out around $60,000
For a family with two children:
- Phases out completely near $73,600
Benefits decrease gradually above threshold levels.
When Will Payments Be Made?
One-Time Top-Up
- Paid no later than June 2026, once legislation receives royal assent
Enhanced Quarterly Schedule (Starting July 2026)
- July 3, 2026
- October 5, 2026
- January 5, 2027
- April 5, 2027
Payments follow the same quarterly structure as the GST/HST Credit.
Why This Benefit Was Introduced
The government cites:
- Persistent grocery inflation
- Higher essential goods costs
- Pressure on middle-income households
The CGBB aims to provide targeted support without requiring new applications, using the existing CRA payment system.
Also Read:
Mark Carney Announces Up to $1,890 Groceries Benefit for 2026: Who Qualifies for the Spring Payment
What You Should Do Now
To ensure you receive payments:
- File your 2024 tax return immediately if not already done
- File your 2025 return on time
- Update direct deposit information in CRA My Account
- Confirm marital status and dependent information is accurate
No separate application form is required.
How This Compares to the Previous GST Credit
| Feature | GST/HST Credit (Old) | CGBB (New) |
|---|---|---|
| Base Amount | Income-tested | Income-tested |
| Enhancement | None | +25% for five years |
| Lump Sum | No | 50% one-time top-up |
| Administration | CRA | CRA |
The program effectively expands the GST credit into a larger cost-of-living support tool.
Frequently Asked Questions (FAQ)
When will the one-time grocery payment arrive?
No later than June 2026, subject to royal assent.
Who qualifies for the CGBB?
Low- and moderate-income Canadians who qualify for the GST/HST Credit and file taxes.
Do I need to apply?
No. Payments are automatic if tax returns are filed.
Also Read:
CRA Confirms GST/HST Credit Payment for February 2026 : Up to $698 for Eligible Canadians
How much can a single person receive?
Up to $950 in 2026, depending on income.
Will this affect other benefits like CCB?
No. It functions similarly to the GST credit and is income-tested separately.
Is the benefit taxable?
No. Like the GST/HST Credit, it is non-taxable.
What happens if I don’t file my tax return?
You will not receive the payment.