Canada Groceries and Essentials Benefit (CGEB): What Canadians Need to Know About the New CRA Benefit in 2026

Canadians struggling with the rising cost of groceries and everyday essentials will soon receive additional support through a new federal program called the Canada Groceries and Essentials Benefit (CGEB).

Starting in July 2026, the CGEB will officially replace the GST/HST Credit and provide increased financial assistance to millions of low- and modest-income Canadians. Before the new benefit launches, eligible Canadians can expect a one-time top-up payment beginning June 5, 2026.

Here’s everything you need to know.

What Is the Canada Groceries and Essentials Benefit?

The Canada Groceries and Essentials Benefit (CGEB) is a newly enhanced version of the GST/HST Credit administered by the Canada Revenue Agency (CRA).

While the name is changing, the program’s eligibility rules and payment structure will remain largely the same. The biggest difference is that benefit amounts are increasing by 25% for the next five years, providing additional support to help Canadians manage the rising cost of food, household necessities, and everyday living expenses.

The federal government estimates that more than 12 million Canadians will benefit from the program.

What Is Replacing the GST/HST Credit?

Beginning in July 2026, the Canada Groceries and Essentials Benefit will replace the GST/HST Credit.

Although the program has a new name and higher payment amounts, it will continue to be:

• Tax-free
• Income-tested
• Automatically calculated by the CRA
• Paid quarterly
• Based on information from your annual tax return

There is no separate application required for most Canadians. If you are already receiving the GST/HST Credit, you will automatically be assessed for the CGEB when you file your taxes.

One-Time Payment Coming June 5th, 2026

To bridge the gap before the new benefit begins, the federal government is issuing a one-time GST/HST Credit top-up payment starting June 5, 2026.

The payment will equal 50% of your annual GST/HST Credit entitlement for the July 2025 to June 2026 benefit period.

For example:

• If your annual GST/HST Credit was $400, you would receive a $200 top-up payment.
• If your annual GST/HST Credit was $800, you would receive a $400 top-up payment.

If you are enrolled in direct deposit with the CRA, the payment will be deposited directly into your bank account. Otherwise, a cheque will be mailed to you. The payment may still appear as a GST/HST Credit payment while financial institutions update their systems.

Who Qualifies for the June 5th 2026 Payment?

You may qualify for the one-time payment if:

• You filed your 2024 income tax return.
• You were entitled to receive the GST/HST Credit in January 2026.
• Your income met the GST/HST Credit eligibility requirements.

If you have not yet filed your 2024 tax return, there is still time. Once your return is assessed, the CRA will determine your eligibility and issue any payment you qualify for.

How Much Could You Receive?

The maximum one-time top-up payment varies based on your family situation and income. According to the CRA, eligible recipients could receive up to:

Actual amounts will depend on your adjusted family net income and family composition.

How Much Will the New CGEB Pay?

For the July 2026 to June 2027 benefit year, maximum annual payments will increase to:

• Single individual: up to $679 annually
• Married or common-law couple: up to $890 annually
• Eligible children under 19: up to $234 per child annually

Payments will continue to be issued quarterly and will be based on information from your 2025 tax return.

Do You Need to Apply?

Most Canadians do not need to apply.

The CRA will automatically determine your eligibility when you file your income tax return. This is one of the many reasons why filing your taxes on time is so important—even if you have little or no income to report.

Final Thoughts

The new Canada Groceries and Essentials Benefit represents one of the most significant increases to the GST/HST Credit in years. With a one-time payment beginning June 5, 2026, followed by a 25% increase in ongoing quarterly benefits starting in July, many Canadians will see additional support to help offset rising household costs.

If you haven’t filed your 2024 tax return yet, now is the time. Filing ensures the CRA can determine your eligibility and helps you avoid missing out on valuable government benefits and credits.

Need help filing your personal tax return or ensuring you’re receiving all available credits and benefits? The team at White Raven Accounting & Bookkeeping is here to help, contact us!