Canada Groceries and Essentials Benefit Launches July 3 with 25% Boost
Starting July 3, 2026, the GST/HST credit is replaced by the Canada Groceries and Essentials Benefit (CGEB), with a permanent 25% increase locked in for five years. Eligible families can now receive up to $1,890 annually, up from $1,400 under the old program.
The federal government has officially transitioned the GST/HST credit to a new program called the Canada Groceries and Essentials Benefit (CGEB), effective July 3, 2026. While the name and payment amounts have changed, the eligibility rules and quarterly payment structure remain identical — no new application is required.
What's Changed
- Payment amounts increase by 25% for the next five years (2026–2031). For the July 2026–June 2027 benefit year, maximums are $679 for a single person (up from $533), $890 for a couple (up from $698), and $234 per child under 19 (up from $184).
- One-time top-up payment: Eligible households received a bonus equal to 50% of their annual July 2025–June 2026 credit, issued June 5, 2026. Families with four children could receive up to $717.
- Same payment schedule: Quarterly payments arrive July 3, October 5, January 5, and April 2 each benefit year. Payments are tax-free and automatically assessed — filing your tax return is the only action needed.
- Income phase-out unchanged: The benefit begins to reduce at adjusted family net income above $45,521, declining by 5% of income above that threshold.
Practical Implications for Expats and Newcomers
If you've recently arrived in Canada or are settling with your family, filing your 2025 tax return is essential to unlock these quarterly payments. Even if you had no income, filing ensures the CRA assesses your household composition and automatically calculates your CGEB entitlement. Direct deposit is the fastest way to receive payments. The increase takes effect immediately on July 3, so families relocating to Canada mid-year should confirm their eligibility based on their residency date and family structure. For income-tested benefits like this, a strategic TFSA withdrawal instead of an RRSP withdrawal in a given year can protect your eligibility without affecting your adjusted family net income.
Sources
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