As tax residents in Canada, we all know that April marks tax season–and that the GST/HST credit is something many of us receive quarterly. But did you know that this benefit is set to transition into a new program? Starting in July 2026, the GST/HST credit will transition into an updated benefit–Canada Groceries and Essentials Benefit. If this is news to you, here’s what you need to keep an eye on.
The Old GST/HST Credit
The GST/HST credit was calculated based on your adjusted family net income from the previous tax year, along with your family situation (single or have a spouse or children and such).
First, the CRA determines a maximum base amount you are eligible for, which includes a basic amount for you, an additional amount for a spouse or partner, and extra amounts for each child under 19. Then, if your income is above a certain threshold, your credit is gradually reduced by a percentage of the excess income, meaning higher-income households receive less or may not qualify at all. Once the final amount is calculated, it is paid out in four quarterly payments over the benefit year.
Transition to The Canada Groceries and Essentials Benefit
As part of the transition to the new benefit, the Canadian government will provide a one-time GST/HST credit top-up payment that will be issued by June 2026. Anyone who was eligible for the GST/HST credit and filed their 2024 tax return in 2025 will receive this payment.
The amount is based on the total GST/HST credit for the period of July 2025 to June 2026, and it increases that annual amount by 50%. It is also affected by your family situation in January 2026, and your 2024 adjusted family net income.
This payment is to give tax residents extra support before the new program begins, helping with rising everyday costs while the benefit transitions.
For more information: https://www.canada.ca/en/revenue-agency/services/child-family-benefits/gst-hst-credit/how-much/one-time-top-up.html
The New Canada Groceries and Essentials Benefit
Starting in July 2026, we will wave goodbye to the GST/HST credit and say hello to the Canada Groceries and Essentials Benefit. This new program is designed to provide stronger financial support for everyday living costs, especially groceries and essential items.
The payment amount remains income-based, with eligibility determined through tax returns. Payments will continue to be issued quarterly and will be gradually increased by 25% over a five-year period (2026 to 2031) starting in July 2026. Individuals and families will receive more support throughout these years.
For more information: https://www.canada.ca/en/revenue-agency/services/child-family-benefits/canada-groceries-essentials-benefit.html
The difference?
As the name suggests, the new program focuses more on groceries and essentials. It also gives you higher payments. However, the way it works, including eligibility, calculation, and payment schedule, stays the same. Most tax residents do not need to take any extra steps to receive the benefit. Eligibility and payment amounts are automatically determined by the CRA. However, new residents of Canada may need to apply using Form RC151 when filing for the first time.
Access Form RC151 here at: https://www.canada.ca/en/revenue-agency/services/forms-publications/forms/rc151.html
With this change in mind, it is time to mark the calendar: April 30, 2026. File the 2025 tax return to keep benefits on track.
Additional Tips for Saving on Groceries
- Plan your meals and make a list. Planning a few meals ahead helps you shop with purpose and avoid unnecessary purchases.
- Shop with a full stomach. Shopping hungry often leads to impulse buys, especially snacks and extras you didn’t plan for.
- Buy in bulk wisely. Bulk items can save money, but only if you can use them before they expire. Focus on staples you use often.
- Keep an eye on unit prices. Compare price per gram or per item — bigger packages are not necessarily the best deal.
- Choose ingredients that can be used in multiple ways. Consider versatile ingredients (like chicken, eggs, or vegetables) that can stretch across several meals.
- Set a weekly grocery budget. A clear spending limit helps you stay disciplined and track where your money goes.
- Limit “just in case” purchases. Buying items you might use often leads to waste. Focus on what you know you’ll use.