New Canada Groceries And Essentials Benefit Of Up To $1,890 In 2026

Last Updated On 26 January 2026, 12:19 PM EST (Toronto Time)

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Ottawa, Ontario — The federal government announced a new Canada Groceries and Essentials Benefit on January 26, 2026, focused on lowering grocery and essentials pressure for low- and modest-income households while also targeting supply chain costs and food insecurity.

At the centre of the plan is the new Canada Groceries and Essentials Benefit, described by the Prime Minister’s Office as the program formerly delivered as the GST credit, with a five-year increase starting in July 2026 plus a one-time top-up in 2026.

Key takeaways for Canadians

The Canada Groceries and Essentials Benefit is the renamed GST credit, with a 25% increase for five years beginning in July 2026.
A one-time payment in 2026 is also promised, equivalent to a 50% increase this year.
Maximum examples in the release: up to $1,890 for a family of four in 2026 and up to $950 for a single person in 2026.
Ottawa says more than 12 million Canadians will receive additional support.
Reuters reports the measures are expected to cost about C$3.1 billion in the first year and C$1.3 billion to C$1.8 billion annually over the following four years.

What Ottawa announced on January 26, 2026

The package is built around two tracks:

Direct household support through the renamed benefit (formerly the GST credit), with higher payments and a one-time top-up.
Food affordability measures aimed at supply chains, domestic production, and food insecurity, including $500 million for supply chain disruption costs, $150 million for SMEs, and $20 million for local food infrastructure.

Canada Groceries and Essentials Benefit explained

The Prime Minister’s Office describes the Canada Groceries and Essentials Benefit as the program formerly known as the GST credit.

This matters because the GST/HST credit framework is already administered by the CRA, is tax-free, and is generally delivered quarterly to eligible low- and modest-income individuals and families.

The five-year increase begins in July 2026

Ottawa says the benefit amount will rise by 25% for five years beginning in July 2026.

July is a key month in the CRA benefit calendar because the GST/HST credit payment period runs from July 1 to June 30 of the next year.

A one-time top-up in 2026

In addition to the multi-year increase, Ottawa says it will provide a one-time payment in 2026 equivalent to a 50% increase this year.

How much could you receive?

The government provided “up to” examples showing the combined impact of the one-time top-up plus the enhanced benefit amounts:

Family Type	Maximum Base Amount for 2026-27	50% Top-Up	25% Increase to 2026-27 Amounts	Total Increase 50% Top-Up + 2026-27 benefit year	Total Benefits Received 50% Top-Up + 2026-27 benefit year
	(A)	(B)	(C)	(B) + (C) = (D)	(A) + (D)
Single	$543	+ $267	+$136	$402	$950
Couple, 2 kids	$1,086	+ $533	+ $272	$805	$1,890
*Assuming Royal Assent by March 31, 2026. Numbers may not add up to totals due to rounding. Example for a single individual assumes no children.

Ottawa says the enhanced benefit will provide additional, significant support for more than 12 million Canadians.

Disclaimer: Estimates are based on maximum examples provided and may vary by income and eligibility; subject to parliamentary approval and Royal Assent.

Timeline: what to expect and when

Here is what is confirmed today, and what typically matters for delivery:

January 26, 2026: Announcement by the Prime Minister’s Office.
2026: One-time top-up equivalent to a 50% increase (the PM release does not specify the exact payment date).
July 2026: 25% increase begins and runs for five years.
GST/HST credit schedule context: CRA lists GST/HST credit payment dates in 2026 as April 2, July 3, and October 5 (the new benefit is described as the renamed GST credit).

Who should pay attention and what to do now

Because this benefit is described as the renamed GST credit, many eligible Canadians should not expect a new application.

The CRA states that Canadians are automatically considered for the GST/HST credit when they file taxes.

To reduce the risk of delays, the practical checklist is:

File your annual tax return on time, because benefits are calculated using tax return information.
Keep marital status and children information up to date with the CRA, since household composition affects benefit calculations.
Confirm direct deposit details in CRA records to avoid missed or delayed payments.

Supply chain and food-system measures included in the package

Ottawa paired the household benefit with a set of measures it says are designed to reduce cost pressures without pushing prices higher at the checkout.

$500 million to help businesses absorb supply chain disruption costs

The government says it will set aside $500 million from the Strategic Response Fund to help businesses manage supply chain disruption costs without passing them on to consumers.

$150 million Food Security Fund for SMEs

Ottawa says it will create a $150 million Food Security Fund under the existing Regional Tariff Response Initiative for SMEs and supporting organizations.

Immediate expensing for greenhouse buildings

To lower food production costs and expand domestic supply, Ottawa says it will introduce immediate expensing for greenhouse buildings, allowing producers to fully write off greenhouses:

acquired on or after November 4, 2025
available for use before 2030

$20 million for Local Food Infrastructure Fund

Ottawa says it will provide $20 million to the Local Food Infrastructure Fund to support food banks and local organizations delivering more nutritious food to families in need.

National Food Security Strategy and competition measures

The government says it is developing a National Food Security Strategy to strengthen domestic production and improve access to affordable, nutritious food.

The PM release also points to measures that would include unit price labelling and support for the Competition Bureau’s market monitoring and enforcement work, including in food supply chains.

How this fits into the broader affordability agenda

The PM’s news release positions today’s announcement alongside previously stated measures, including a first-bracket personal income tax rate cut to 14% starting July 1, 2025, GST changes for first-time homebuyers on certain new homes, and the cancellation of the federal consumer carbon tax effective April 1, 2025.

What is confirmed vs what is still pending details

Confirmed today:

A renamed GST-credit-style benefit with a 25% increase beginning in July 2026 for five years.
A one-time top-up in 2026 equivalent to a 50% increase.
Package amounts: $500 million (Strategic Response Fund), $150 million (Food Security Fund), and $20 million (Local Food Infrastructure Fund).
Fiscal cost estimate reported by Reuters: C$3.1 billion in year one and C$1.3 billion to C$1.8 billion annually for the next four years.

Still pending:

The exact payment date for the one-time 2026 top-up is not specified in the PM release.
Operational details on how the top-up will appear in CRA notices and whether any eligibility thresholds will be adjusted beyond the renamed structure are not published in the release.
Implementation details and timelines for unit price labelling and competition enforcement actions are not detailed in the release.

Ottawa is positioning this announcement as immediate household relief through a renamed and expanded GST-credit-style benefit, alongside policy and funding measures meant to strengthen supply chains, support food banks, and increase domestic food production over time.

For most households, the key practical step remains ensuring taxes are filed and CRA information is current, while Canadians watch for CRA operational guidance that clarifies the exact timing and delivery of the one-time 2026 top-up and the July 2026 increase.

New Canada Groceries and Essentials Benefit FAQs

Will the Canada Groceries and Essentials Benefit affect my other CRA benefits or provincial supports?

In most cases, a federal refundable credit-style benefit is administered separately from the Canada Child Benefit and most provincial programs. However, interactions can vary by province and by how income-tested programs are calculated. The safest approach is to review your benefit notice(s) when they arrive and check whether your province counts the payment as income for any income-tested supports. If anything looks off, contact the administering agency before assuming eligibility changed.

If I did not receive the GST/HST credit before, could I become eligible in 2026?

Yes, eligibility can change year to year because CRA benefits are generally recalculated based on your most recent tax return and your household situation. Income changes, marital status changes, and having a child can all affect eligibility. If you were previously ineligible, filing your tax return for the relevant year is still the essential step to be assessed automatically.

How can I verify whether a payment I receive is legitimate and not a scam?

Use your CRA account and official CRA communications to confirm payment descriptions, dates, and amounts. Avoid clicking links from texts or emails claiming you must “verify” banking details to receive the benefit. Legitimate CRA benefit payments typically appear as direct deposits or cheques tied to your CRA profile, and you can confirm them by signing in directly through official channels rather than through message links.

Who qualifies for the Canada Groceries and Essentials Benefit?

The Canada Groceries and Essentials Benefit is designed for low- and modest-income individuals and families. Eligibility is primarily based on income thresholds, which vary by family size and composition. Single individuals must have a net income below a specified limit based on their 2024 tax return, while single parents and couples have higher thresholds. Additionally, those already receiving the Goods and Services Tax (GST) Credit automatically qualify. To receive the benefit, eligible individuals must file their 2024 and 2025 tax returns to access payments starting in July 2026. For specific income thresholds and updates, visit the Canada Revenue Agency.

Gagandeep Kaur Sekhon

Gagandeep Kaur Sekhon moved to Canada in 2010 on a study visa. She navigated through the ups and downs of her student life and gained her permanent residency in 2015. Today, she is a proud Canadian citizen residing in Calgary, Alberta. She is mother of 2 beautiful daughters and making her difference through writing and guidance at INC – Immigration News Canada.