What's the new Canada Groceries and Essentials Benefit? Find out who's eligible for Carney's increased GST rebate
Vowing to put “more money back in Canadians’ pockets,” Prime Minister Mark Carney announced a new GST rebate in Ottawa on Monday. Formerly known as the Goods and Services Tax (GST) credit, here’s what you need to know about the new Canada Groceries and Essentials Benefit.
How much is it?
Starting in July, the government will increase the existing GST credit amount by 25 per cent for five years. Eligible Canadians will also receive a one-time payment equal to a 50 per cent increase in 2026, which means a family of four will receive up to $1,890 this year and approximately $1,400 per year for the next four years.
A single person will receive up to $950 this year and roughly $700 a year for the next four years.
“Our government is taking direct action to make life more affordable for Canadians. We are providing immediate relief on groceries and essentials, while strengthening domestic food production, competition, and supply chains to build a more resilient, affordable economy for the future,” Finance Minister François-Philippe Champagne said in a news release .
Who is eligible?
The government said that more than 12 million Canadians are eligible for the new Canada Groceries and Essentials Benefit.
Though Carney didn’t specify the eligibility criteria for the new rebate, you’re eligible for the GST credit if you’re a resident of Canada (in the month before the Canada Revenue Agency makes a payment and at the beginning of the month a payment is made), and are at least 19 years old (or you’re under 19 and have or had a spouse or common-law partner or you are or were a parent).
Certain income levels aren’t entitled to receive the existing GST credit. For example, a single individual who made more than $56,181 in 2024 is not eligible to receive it. That figure increases to $74,201 for a single parent with four children.
How can you get it?
Though specifics weren’t announced for the new rebate, to get the existing credit , you don’t need to apply. If you file your tax return every year, the CRA automatically checks your eligibility when it assesses it. If you meet the criteria, you’ll receive payments automatically. If you haven’t filed your tax return, you can’t receive the payment.
When is the GST rebate paid?
The rebate is paid out four times a year . This year, the payment dates are: Jan. 5, April 2, July 3, 2026 and Oct. 5. The January and April payments are “based on your adjusted family net income from your 2024 tax return,” while the July and October payments are based on your 2025 return.
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