Prime Minister Mark Carney has announced a major affordability package that includes a 25% permanent increase to the existing GST/HST Credit, along with a one-time top-up equal to 50% of the credit this year.
Administered by the Canada Revenue Agency (CRA), the enhanced payment is being rebranded as the Canada Groceries and Essentials Benefit. The government says the measure will put “hundreds of dollars more” into the bank accounts of more than 12 million Canadians.
While final eligibility details are expected in upcoming legislation, the benefit will apply to Canadians who currently qualify for the GST/HST Credit and file their tax returns.
How Much More Will Families Receive?
According to Carney, a family of four currently receiving about $1,100 annually under the GST credit could see payments rise significantly.
2026 Benefit Year Example
- Up to $1,890 in 2026 (including the one-time 50% supplement)
- Approximately $1,400 annually for each of the next four years under the 25% increase
Exact amounts will continue to depend on adjusted net family income and household composition.
Who Qualifies?
Although full criteria have not yet been released, eligibility is expected to mirror existing GST/HST Credit rules:
- Canadian resident for tax purposes
- Filed income tax return
- Income within program thresholds
The CRA will use tax data to determine automatic eligibility. No separate application is anticipated if returns are up to date.
Payment Timeline
One-Time Top-Up
- Expected in 2026, following legislative approval
- Equivalent to 50% of the existing GST credit
Ongoing Increase
- 25% boost to GST credit beginning in 2026
- Continues for five years
Payments will follow the same quarterly schedule as the GST/HST Credit.
Why the Increase Is Being Introduced
The announcement comes amid elevated grocery inflation and affordability concerns.
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Statistics Canada recently reported inflation accelerating to 2.4% in December, intensifying pressure on household budgets.
Carney said the goal is to:
- Offset rising grocery prices
- Support middle- and low-income households
- Provide predictable, automatic relief
Additional Affordability Measures Announced
The grocery rebate enhancement is part of a broader package that includes:
- A new National Food Security Strategy
- Support for the Competition Bureau to monitor food pricing
- Measures to improve food security in northern Canada
- $20 million top-up for food banks
- A $500 million fund to strengthen food supply chains
The strategy also proposes clearer unit pricing labels so consumers can compare grocery costs more easily.
Political Reaction
The Conservative Party of Canada criticized the measures, arguing they do not address structural cost pressures.
Government House Leader Steve MacKinnon called on opposition parties to support the legislation during the upcoming spring session of Parliament.
The announcement also comes amid renewed Canada–U.S. trade tensions following comments from Donald Trump regarding potential tariffs.
What Canadians Should Do Now
To ensure eligibility:
- File your income tax return on time
- Keep direct deposit information updated in CRA My Account
- Monitor official CRA updates for payment confirmation
Since payments will be income-tested, changes in income could affect benefit levels.
How This Compares to the Current GST Credit
| Feature | Current GST Credit | New Groceries & Essentials Benefit |
|---|---|---|
| Base Payment | Income-tested | Income-tested |
| Increase | None | +25% for five years |
| One-Time Bonus | No | 50% extra payment in 2026 |
| Administration | CRA | CRA |
Frequently Asked Questions (FAQ)
How much is the GST credit increasing?
It will rise by 25% for five years, plus a one-time 50% supplement in 2026.
When will the one-time payment arrive?
Expected in 2026 after legislative approval.
Who qualifies?
Canadians who qualify for the GST/HST Credit and file their taxes.
Do I need to apply?
No separate application is expected.
How much will a family of four receive?
Up to $1,890 in 2026, depending on income.
Is the payment taxable?
No. Like the GST credit, it is non-taxable.
Will this affect other benefits?
It is separate from programs like the Canada Child Benefit.