What is the news?
The goods and services tax/harmonized sales tax credit was renamed and enhanced as the Canada Groceries and Essentials Benefit in July 2026. The benefit builds on the existing credit, with the same core eligibility and payment structure.
The benefit amount increased by 25% beginning in July 2026. That increase is legislated for five years, from 2026 to 2031; it is not a permanent increase.
- First enhanced quarterly payment
- July 2026
- Payment schedule
- July, October, January, and April
- Enhanced amount
- 25% higher for five years
Who is affected?
Canadian residents with low or modest income who meet the Canada Groceries and Essentials Benefit eligibility rules may qualify, including many retirees receiving Old Age Security, the Guaranteed Income Supplement, or the Canada Pension Plan. Filing a tax return is how the Canada Revenue Agency assesses eligibility, even when no tax is owed.
What is the impact?
Canada Groceries and Essentials Benefit payments are tax-free and are paid in addition to the Guaranteed Income Supplement. Finance Canada’s illustration says a single senior with $25,000 in net income received a $267 one-time June top-up and will receive a $136 longer-term increase in 2026–27, for up to $950 total for that benefit year.
What should you do?
File your annual tax return, keep your marital status and direct-deposit details current with the Canada Revenue Agency, and check your account or payment details if an expected payment does not arrive. Use the agency’s payment chart for your exact amount rather than a general example.
Official sources
General educational information only—not financial, tax, or legal advice. Confirm eligibility and payment amounts directly with the Canada Revenue Agency.