New GST Payment Increase Coming In 2026

Last Updated On 12 December 2025, 12:32 PM EST (Toronto Time)

Canadian taxpayers can expect a confirmed Goods and Services Tax – GST payment increase in 2026 as the federal government applies a 2% inflation indexation to benefit amounts.

While this adjustment may appear modest compared to the sharp increases seen in earlier years, it still represents an important boost for low- and modest-income individuals and families coping with persistently high living expenses.

The GST credit remains one of the most widely accessed federal CRA benefits, providing tax-free quarterly payments that help offset the GST or HST paid on everyday purchases.

With inflation easing but prices still elevated across housing, groceries, utilities, and transportation, the July 2026 indexation will play a key role in stabilizing household budgets.

This comprehensive guide explains how the 2% increase will work, who qualifies, how payment amounts are calculated, and all the confirmed GST payment dates for 2026.

What Is The GST Payment?

The GST and HST credit is a tax-free quarterly benefit administered by the Canada Revenue Agency.

It is designed to help low- and modest-income Canadians recover part of the GST or HST they pay on goods and services.

Unlike refundable tax credits claimed only at tax time, GST payments are issued automatically four times per year to eligible individuals and families.

The credit is income-tested and adjusted annually to reflect inflation and changes in household circumstances.

The GST credit supports a broad range of recipients, including workers, seniors, students, newcomers, and families with children, making it one of the most critical cost-of-living supports in the CRA benefit system.

Confirmed GST Payment Increase In 2026

The GST payments will increase by 2% starting in July 2026. This adjustment is based on the official inflation indexation applied to income-tested federal benefits.

The increase aligns with the annual indexation framework used by the federal government, which adjusts benefits to reflect changes in the Consumer Price Index.

While inflation has cooled significantly compared to earlier years, the two percent increase ensures that GST credit payments continue to retain purchasing power.

This increase will take effect at the start of the new benefit year, which runs from July 2026 to June 2027.

Why GST Payments Increase Every Year

Federal income-tested benefits such as the GST credit, Canada Child Benefit, and Child Disability Benefit are indexed to inflation to prevent erosion of their real value over time.

Indexation ensures that benefit amounts rise when the cost of living increases, even if wages do not keep pace.

Without indexation, recipients would gradually lose purchasing power year after year.

Increases take effect on July first each year, marking the beginning of the new program year for these benefits.

GST Credit Indexation History

The GST credit indexation rate has varied significantly in recent years due to changing inflation levels.

Year	Indexation increase
2026	2.0%
2025	2.7%
2024	4.7%
2023	6.3%

The steep increases in 2023 and 2024 reflected historically high inflation.

As inflation moderated, the indexation rate declined accordingly, resulting in a smaller but still meaningful increase for 2026.

How GST Payment Amounts Are Calculated

GST credit amounts are recalculated every July based on information from your previous year’s tax return.

Each payment year runs from July to June. For example, income reported on your 2024 tax return determines the GST credit payments you receive from July 2025 to June 2026.

This means your eligibility and payment amount depend on factors such as:

Net family income
Marital or common-law status
Number of eligible children under nineteen
Province or territory of residence

Any changes in these factors can directly affect how much you receive.

Maximum GST Credit Amounts Before The 2026 Increase

Based on the current benefit structure, Canadians can receive up to the following maximum annual amounts for the July 2025 to June 2026 period:

$533 if you are a single individual
$698 if you are married or have a common-law partner
$184 for each child under the age of nineteen

These figures represent the maximum amounts before the two percent indexation takes effect in July 2026.

How Much Can You Get With the New GST Payment Increase In 2026?

With a 2% indexation applied in July 2026, maximum GST credit amounts are expected to increase modestly.

While the Canada Revenue Agency will officially confirm figures closer to July, a 2% adjustment would roughly translate to:

About $543 for a single individual
About $712 for couples or common-law partners
About $188 per eligible child

Actual payment amounts will vary depending on income levels and household composition.

Confirmed GST Payment Dates For 2026

The Canada Revenue Agency has confirmed all GST payment dates for the year 2026.

Payments are issued quarterly and typically arrive by direct deposit or check.

January 5, 2026
April 2, 2026
July 3, 2026 (2% increase comes in effect)
October 5, 2026
January 5, 2027

The July payment is particularly important, as it reflects the new indexed benefit amounts for the entire payment year.

The July payment marks the start of the new GST credit year and incorporates the updated indexation.

This means the July, October, January, and April payments following July 2026 will all reflect the increased amounts.

Canadians who rely on GST payments for budgeting should expect a slightly higher deposit starting in early July.

Who Is Eligible For The GST Payments In 2026

Eligibility for the GST credit is determined automatically when you file your tax return.

You may qualify if:

You are at least 19 years old, or
You have a spouse or common-law partner, or
You are a parent living with your child

You must also be a Canadian resident for income tax purposes.

Eligibility is based on net family income, meaning higher-income households will see reduced or eliminated payments as income rises.

Income Thresholds And Phase-Out Rules

The GST credit is income-tested, and payments gradually phase out as income increases.

While exact thresholds vary by family size, individuals and families with low to moderate incomes receive the highest payments.

Even if you earn too much to receive the full amount, you may still qualify for a partial credit. Filing your tax return is essential, even if you believe your income may be too high.

GST Credit For Families With Children

Families with children under 19 receive additional GST credit amounts for each eligible child.

These child amounts are added to the base credit and are also subject to indexation.

This makes the GST credit particularly important for families facing higher costs related to food, clothing, housing, and childcare.

GST Credit And Seniors

Many seniors rely on the GST credit alongside other benefits such as Old Age Security and the Guaranteed Income Supplement.

Because GST payments are tax-free and do not reduce other benefits, they provide valuable supplemental income for seniors on fixed budgets.

The 2% increase in July 2026 will apply equally to seniors who qualify.

GST Credit For Newcomers To Canada

Newcomers may qualify for the GST credit once they become residents for tax purposes.

In many cases, newcomers must apply separately for the first year by submitting the appropriate CRA forms.

After that, eligibility is assessed automatically based on tax filings.

The GST credit is often one of the first federal benefits newcomers receive, helping them manage initial settlement costs.

To receive the increased GST credit payments in 2026, you must ensure that your tax and personal information is up to date.

Key steps include:

Filing your 2025 tax return on time
Reporting accurate income information
Updating marital status changes promptly
Reporting the birth of a child as soon as possible
Keeping your address and banking details current with the CRA

Failure to file taxes, even with no income, can result in missed payments.

As economic conditions evolve and governments adjust fiscal priorities, the GST credit is expected to continue playing a key role in supporting low- and modest-income Canadians.

The confirmed 2% GST credit increase in 2026 may not be as dramatic as earlier adjustments, but it still represents meaningful support for millions of Canadians.

With recalculated amounts taking effect in July and payments issued quarterly throughout the year, the GST credit will continue to help households manage everyday costs in a challenging economic environment.

Filing your taxes on time and keeping your information updated remains the single most important step to ensure you receive every dollar you are entitled to in 2026 and beyond.

Frequently Asked Questions (FAQs)

What is the GST credit and who qualifies for it in Canada?

The GST credit is a tax-free quarterly payment issued by the Canada Revenue Agency to help low- and modest-income Canadians offset the GST or HST they pay on goods and services. You may qualify if you are at least 19 years old or have a spouse or common-law partner or are a parent living with your child and you are a Canadian resident for tax purposes. Eligibility is based on your net family income reported on your tax return.

How often is the GST credit paid and when are the payments issued?

The GST credit is paid four times a year. Payments are typically issued in January, April, July, and October. Each payment reflects your annual entitlement divided into quarterly installments. The July payment is especially important because it includes any annual indexation increase.

How are GST credit amounts calculated each year?

GST credit amounts are recalculated every July based on your previous year’s tax return. The CRA considers your net family income, marital or common-law status, number of children under age 19, and province or territory of residence. CRA Benefit amounts are also adjusted annually for inflation using an indexation rate.

Do I need to apply for the GST payments every year?

No separate application is required if you file your tax return. The CRA automatically determines your eligibility and payment amount each year based on your tax filing. If you do not file a tax return, you will not receive GST payments, even if you have no income.

Will the GST credit affect other benefits or taxable income?

No, GST payments are tax-free and do not count as income. Receiving the GST credit does not reduce other federal or provincial benefits such as the Canada Child Benefit, Old Age Security, or the Guaranteed Income Supplement.

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.