The grocery and essentials benefit that replaced the GST/HST credit

For years, millions of households received a quarterly deposit labelled as the GST/HST credit, often without knowing exactly what it was for. Since July 2026 that deposit has a new name, the Canada Groceries and Essentials Benefit, and for most recipients it is larger. Nothing had to be done to keep receiving it, other than the one thing that was always required: filing a tax return.

This file explains what changed, what the published maximum amounts are, and why the benefit is easy to lose track of for people who do not usually file.

A familiar payment with a new name

The Canada Revenue Agency says the Canada Groceries and Essentials Benefit replaced the GST/HST credit in July 2026. It is a tax-free quarterly payment for individuals and families with low and modest incomes, intended to help with the cost of everyday essentials. The eligibility criteria are the same as those of the GST/HST credit it replaced. Parliament passed the legislation in February 2026.

What changed in July 2026

Two things changed at the start of the July 2026 benefit year:

• The name, and with it the label on the deposit and on CRA notices.
• The amount. According to the CRA, the benefit amount increased by 25% in July 2026, and that increase will remain for five years, from 2026 to 2031.

The Department of Finance estimated, when the benefit was announced in January 2026, that 12.6 million individuals and families would benefit, including 500,000 who would newly qualify because of the larger amounts.

The maximum amounts for July 2026 to June 2027

The CRA publishes these maximum annual amounts for the payment period from July 2026 to June 2027:

These are maximums. The benefit is smaller for households with higher adjusted family net income, and stops entirely above income levels the CRA sets for each type of family. Paid quarterly, a single person’s maximum works out to $169.75 a payment.

How the yearly figures fit together

The Department of Finance’s backgrounder from January 2026 broke the first year down into three parts: the regular amount, the 25% increase, and a one-time top-up paid earlier in 2026. The regular amount plus the increase matches the CRA’s maximums above.

For a couple with two children, $890 for the couple plus $234 for each child gives the same $1,358 yearly maximum. The one-time top-up applies only once; from the July 2027 benefit year onwards, the yearly maximum, indexed to inflation, is the relevant figure.

The one-time top-up in June

Before the new name took effect, the government paid a one-time top-up on June 5, 2026, equal to 50% of the 2025–26 GST/HST credit. It went automatically to people who were entitled to the GST/HST credit in January 2026. It was not a new program and it will not repeat. Anyone who sees a website or message offering to “release” a grocery payment in exchange for personal details or a fee is not dealing with the government.

Who is eligible

According to the CRA, you can receive the benefit if you are a resident of Canada for tax purposes in the month before and at the beginning of the month in which a payment is made, and you are at least 19. Someone under 19 can qualify if they have, or had, a spouse or common-law partner, or are, or were, a parent living with their child. For couples, both incomes are combined into adjusted family net income, and the household is assessed against the income levels for couples.

Why the tax return is the application

The amount for July 2026 to June 2027 is calculated from the 2025 tax return. It is recalculated every July from the previous year’s return. That has two consequences:

• No return, no benefit. People with little or no income, who owe no tax, still need to file to be considered. Couples both need to file.
• A change in income shows up a year later. A job loss in 2026 is reflected from July 2027, after the 2026 return is filed.

Low-income workers who file may also be entitled to the Canada Workers Benefit, which is claimed on the same return. Income inside a TFSA is not reported on the return, so, as our TFSA file notes, it does not affect the calculation.

Payment dates and missing payments

The CRA lists the 2026 payment dates as January 5 and April 2 (paid as the GST/HST credit) and July 3 and October 5 (paid as the Canada Groceries and Essentials Benefit). The CRA will send a notice with the annual entitlement and the quarterly schedule. If a payment does not arrive, the CRA asks people to check its status in My Account, make sure their information is up to date, and wait 10 business days after the expected date before calling.

What to check

For how this benefit differs from the separate change in income tax rates, see our file on the 2026 federal tax cut.

SOURCES ON FILE

1. Canada Revenue Agency — Canada Groceries and Essentials Benefit — replaced the GST/HST credit in July 2026; 25% increase for five years; automatic on filing.
2. Canada Revenue Agency — How much you can get — maximum amounts for July 2026 to June 2027, based on the 2025 return.
3. Department of Finance Canada — Backgrounder: The new Canada Groceries and Essentials Benefit — example amounts, top-up and reach.
4. Canada Revenue Agency — Payment dates — 2026 payment dates and what to do if a payment is missing.

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