UMVA has learned that Canadian families and individuals eligible for the GST/HST credit will receive a one-time top-up payment in their bank accounts this week, providing much-needed financial relief to those struggling with the rising cost of living.
The Canada Revenue Agency will give those entitled to the rebranded Canada Groceries and Essentials Benefit an additional payment of 50% of their previous GST/HST credit, a move aimed at making groceries and other essentials more affordable for millions of Canadians. This payment is part of a broader effort to support individuals and families facing difficult economic conditions due to global challenges and trade uncertainty.
According to information obtained by UMVA, starting July 3, the renamed quarterly payments will increase by 25% for five years until 2031, providing a significant boost to those who need it most. The government estimates that 12.6 million individuals and families will benefit from the new Canada Groceries and Essentials Benefit, representing a material support to Canadians during a time of economic uncertainty.
The eligibility criteria for the new benefit are straightforward: Canadians who are 19 years and older do not need to apply, as the CRA will determine eligibility automatically after an individual's 2025 tax return has been filed. New residents in the country may need to apply using a specific form, and the eligibility criteria for the previous GST/HST credit will still apply to the new benefit.
To receive the one-time top-up payment, individuals must have filed their 2024 tax return and been entitled to receive the GST/HST credit in January 2026. The amount of the top-up payment will depend on an individual's financial and family situation, with those who received a higher GST/HST credit eligible for a larger payment. For example, if an individual received a GST/HST credit of $500, the top-up payment will be $250.
The government has outlined the maximum payment amounts for different family situations, including up to $267 for individuals or single parent families with no children, and up to $717 for families with four children. For residents who are married or in a common-law relationship, each couple will receive a top-up payment of $349 if they have no children. The CRA has also provided guidance on how the payments will be handled for individuals with shared custody of a child.
However, not everyone will be eligible for the top-up payment. Individuals who did not file a 2024 tax return may not receive the payment, and those who were not eligible for the GST/HST credit in January 2026 will not get the extra cash. Additionally, if a resident owes money to the CRA, the payment will be applied to the outstanding balance instead of being deposited into their bank account.
