Introducing the Canada Groceries & Essentials Benefit (formerly the GST/HST Credit) – 2026 updates & payment details.

Canadians have been feeling the squeeze at the checkout line for years now, and the federal government has officially stepped in with some much-needed relief. Say hello to the newly renamed and expanded Canada Groceries & Essentials Benefit, formerly known as the GST/HST credit. This change is part of a broader affordability effort aimed at helping households manage rising day-to-day costs.

If you’ve ever wondered whether the government really gets what your grocery bill looks like these days, well, this might be the closest thing to a yes.

Here’s everything you need to know.

At-a-glance summary of the Canada Groceries & Essentials Benefit.

• Replaces the GST/HST credit.
• One-time 50% top up this spring (no later than June 2026).
• Quarterly amounts rise 25% starting July 2026.
• Family of four: up to $1,890 from July 2026 to June 2027.
• Single person: up to $950 from July 2026 to June 2027.
• No application needed, CRA uses your tax return.
• Money can be used for anything, not just groceries.

What’s the Canada Groceries & Essentials Benefit?
The federal government has rebranded and enhanced the long-standing GST/HST credit, now called the Canada Groceries & Essentials Benefit. This updated benefit is designed to give Canadians more support, fast.

According to the Department of Finance, the legislation officially passed on February 12, 2026, with Royal Assent granted to Bill C-19, enabling significant boosts to payments starting this year. 

Check out the Government of Canada website to read more on how legislation passes to deliver the new Canada Groceries and Essentials Benefit. 

How much money will Canadians receive?
More than 12 million Canadians are expected to benefit from the new enhancements. Here’s how the support breaks down:

1. A one-time special payment – June 2026.

• A lump sum payment equal to a 50% increase in your annual GST/HST credit amount for this year.

• This top up is designed to provide immediate relief and will be delivered as early as spring or June 2026. 

2. Quarterly payments increasing by 25% – starting July 2026.

• For the next five years, quarterly benefit payments will rise by 25%.

• This delivers long-term affordability support to low- and modest-income Canadians. 

Real life examples:

• Family of four: Up to $1,890 this year (previously around $1,100).
  Future years: about $1,400 annually.

• Single person: Up to $950 this year (previously about $540).
  Future years: about $700 annually.

Do I have to spend it on groceries?
Nope! Despite the name, the Canada Groceries & Essentials Benefit isn’t restricted to groceries or household items. Canadians can use the funds for anything they need most, whether that’s rent, transit, health expenses, or yes, your actual grocery bill.

The intention is to help offset rising essential costs, but how you spend it is entirely up to you. (We won’t tell if it goes toward a well-deserved treat.)

Do I need to apply?
The good news: most Canadians don’t need to apply at all.
The Canada Revenue Agency will automatically determine your eligibility when you file your taxes –making tax filing more important than ever.

To receive these payments:

• File your 2024 tax return to qualify for the one-time payment.

• File your 2025 return to receive the increased quarterly amounts starting July 2026.

If you already receive the GST/HST credit, you’re likely already covered.

When are the quarterly payment dates?
Once the enhanced Canada Groceries & Essentials Benefit begins its long-term increase in July 2026, payments will follow the same schedule as the traditional GST/HST credit.

According to government updates, quarterly payments for the 2026–2027 benefit year will begin in July 2026, with funds typically issued on or around July 5, October 5, January 5, and April 5 of each year. 

Check out our Benefit Payment Dates & Canadian Tax Deadlines page to learn more about when you can expect to receive payments for all eligible credits and benefits. 

Why this change matters.
Food and basic living costs have risen faster than overall inflation in recent years, leaving many families struggling. The federal government has emphasized that these enhanced payments are aimed at offering immediate support while longer-term affordability strategies roll out. 

While this benefit may not solve Canada’s complex food affordability issues on its own, experts agree it’s a meaningful step toward easing pressure on household budgets. 

Frequently asked questions.

Final thoughts from H&R Block Canada.
At H&R Block, we know how impactful government benefit changes can be and how important it is to understand exactly what you’re eligible for. The new Canada Groceries & Essentials Benefit is a welcome boost for millions of Canadians navigating rising living costs.

We’re here to help you make sure you don’t leave a dollar on the table. From preparing your return accurately to helping you understand your benefit eligibility; our Tax Experts have your back every step of the way.