If you’ve been feeling the pinch at the grocery store lately, a little bit of relief could soon be on the way.
Prime Minister Mark Carney just announced a major overhaul to government payments that will put hundreds of extra dollars in the pockets of millions of Canadians this year.
Speaking from an Ottawa grocery store on Monday morning, Carney unveiled two big changes: a brand new one-time Canada Groceries and Essentials Benefit, plus a massive 25% boost to the GST/HST Credit that will last for five years.
More than 12 million low- and modest-income Canadians are expected to benefit from the changes.
“The rise in food prices means that a lot of those Canadians need more support right now,” Carney said.
Combined, this means a family of four will receive up to $1,890 this year, and about $1,400 a year for the next four years. A single person will receive up to $950 this year, and about $700 a year for the next four years.
The one-time grocery benefit
The new Canada Groceries and Essentials Benefit is a one-time payment designed to help tackle food inflation.
It comes after Canada’s latest Food Price Report predicted grocery prices would increase between 4% and 6% in 2026. For an average family of four, that means the annual grocery bill will jump from $16,577 in 2025 to $17,572 in 2026.
Here’s how much you could get:
- $267 for single individuals without kids
- $349 for couples without kids
- $441 for families with one child
- $533 for families with two children
- $625 for families with three children
- $717 for families with four children
According to the federal government, that one-time payment will arrive “as early as possible this spring and no later than June 2026.”
GST/HST Credits are getting way bigger
On top of the grocery benefit, the government is proposing to raise the GST/HST Credit by 25% for the next five years.
Starting with the new benefit year in July, annual maximums for the GST/HST Credit would increase to:
- $679 for single individuals without kids (up from $533 in the current benefit year)
- $890 for couples without kids (up from $698)
- $1,124 for families with one child (up from $882)
- $1,358 for families with two children (up from $1,066)
- $1,592 for families with three children (up from $1,250)
- $1,826 for families with four children (up from $1,434)
Those yearly totals are divided into four equal payments, sent out in July, October, January and April. The boosted amounts would continue until at least the 2030-31 benefit year.
Who’s eligible?
You’re eligible for these new and boosted payments as long as you already qualify for the GST/HST Credit. That means:
- You’re a Canadian resident for tax purposes
- You’re at least 19 years old (or meet specific criteria if you’re younger)
- You filed your 2024 tax return (even if you made no income)
The amount you receive depends on your adjusted family net income. You’ll get the full grocery benefit if your 2024 income was $45,521 or less, regardless of your family size.
For the GST/HST Credit boost starting in July, income thresholds are increasing slightly as well. You’ll get the full (boosted) GST/HST Credit maximum if your 2025 income was $46,432 or less.
For single individuals, there’s also a minimum income threshold to get the full single supplement. You must earn at least $23,264 to receive the maximum amount available to you.
If your household earned more than $46,432 last year, your credit gets reduced gradually. Under the boosted payment amounts, the GST/HST Credit will cut off completely around:
- $60,012 for single individuals without kids
- $64,232 for couples without kids
- $68,912 for families with one child
- $73,592 for families with two children
- $78,272 for families with three children
- $82,952 for families with four children
How to apply
You don’t need to submit anything to be enrolled. As long as you’re already eligible for the GST/HST Credit and have filed your tax returns, the payments will come automatically.
Just make sure you file your 2024 tax return if you haven’t already. And when tax season rolls around this year, file your 2025 return on time to ensure you get the boosted quarterly payments starting in July.
