Federal government renames and boosts GST credit to Canada Groceries and Essentials Benefit
Ottawa is increasing the GST credit with a one-time top-up and a five-year boost, targeting lower- and moderate-income households. About 12 million people will be affected.
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By Torontoer Staff
The federal government announced a multibillion-dollar increase to the Goods and Services Tax credit, renaming it the Canada Groceries and Essentials Benefit. Eligible recipients will get a one-time 50 percent top-up in June and a 25 percent increase to regular payments for five years, starting in July.
Ottawa says roughly 12 million people will see larger quarterly GST payments designed to offset the sales tax paid on goods and services. The measures aim to direct more cash to low- and moderate-income individuals and families as prices remain high for many household essentials.
What the increase includes
Combined, the one-time top-up and the five-year boost raise the maximum possible amounts recipients can expect. According to details published by the Prime Minister’s Office, a single person could receive up to $950 through the credit this year, and up to $700 per year for each of the next four years. A family of four could receive up to $1,890 this year, and about $1,400 annually for the following four years.
Combined, the two measures mean a single person could receive up to $950 this year, and up to $700 a year for the following four years.
Prime Minister’s Office
Who qualifies and how payments are calculated
Eligibility for the GST credit is based on family income from the previous tax year. For the 2024 tax year, an individual without children must have net income below $56,181 to qualify. Higher income thresholds apply for couples and families. Payments are adjusted yearly for inflation and recalculated each July using information from taxpayers’ most recent tax returns.
- About 12 million people are expected to be eligible under current rules.
- Payments are issued quarterly and will be larger starting with a top-up in June, then the increased rate from July.
- Recipients do not have to spend the money on groceries. The government does not restrict how the funds are used.
How this fits with past affordability measures
The change joins a string of temporary federal and provincial programs aimed at easing living-cost pressures. In 2023, the federal government delivered a one-time extra GST payment, labelled a grocery rebate. The government also implemented a short-lived GST/HST holiday between December 2024 and February 2025 that suspended sales tax on a range of items.
Provinces have pursued their own relief, sometimes with broader eligibility. Quebec issued $500 payments to adults under a certain income threshold, and Alberta cut its provincial fuel tax for a time. Critics have argued some past measures benefited households regardless of need, while advocates for low-income Canadians say targeted transfers help those most likely to face food insecurity.
What recipients should know
There is no requirement to spend the new payments on groceries, despite the benefit’s name. Anti-poverty groups note that many low-income households report skipping meals or sacrificing food quality to cover rent and other bills, making it likely that additional cash will be used for food and essentials in many cases.
To ensure you receive the correct payment amounts, file your annual tax return on time and update your address and marital status with the Canada Revenue Agency if circumstances change. Payments are calculated from the previous year’s tax information, so late or missing returns can delay or reduce benefits.
How to plan for the change
Households expecting larger GST credit payments should consider basic budgeting steps: identify recurring essential expenses, set aside the one-time top-up for immediate needs or unexpected bills, and review eligibility for other provincial or municipal supports. Community food programs and local social services can help bridge shortfalls while longer-term financial adjustments are made.
- File your taxes on time to avoid delays.
- Use the one-time top-up for urgent needs or to build a small emergency cushion.
- Check provincial and municipal programs for complementary supports.
The renamed Canada Groceries and Essentials Benefit represents a clearer, more targeted approach than some past broad-based measures. It channels additional cash to lower-income households through an existing program rather than offering blanket tax breaks.
Expect official guidance and payment schedules from the Canada Revenue Agency in the weeks ahead. If you think you qualify but do not receive payments, contact the CRA or consult a tax professional for help.
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