Canadians to Receive One-Time GST Top-Up in June, Grocery Benefit Rolls Out in July

Produce displayed at a grocery store in Toronto in a file photo. The Canadian Press/Frank Gunn

A one-time top-up will be distributed to millions of eligible Canadians in June, marking the launch of Ottawa’s new grocery benefit that will replace GST/HST credit payments and will increase payment amounts for five years.

Prime Minister Mark Carney had announced in January that the Canada Groceries and Essentials Benefit (CGEB) would increase the financial support provided to families and individuals through the Goods and Services Tax (GST)/Harmonized Sales Tax (HST) credit.

The payment boost under the new grocery benefit will begin with a one-time 50 percent GST/HST rebate top-up on June 5 and will be followed by a 25 percent increase to the quarterly GST/HST rebate in July, the Canada Revenue Agency (CRA) said on its website. The 25 percent increase to the quarterly payment will continue through to the summer of 2031.

“These measures will provide increased financial support to more than 12 million Canadians with low and modest incomes to help manage the costs of everyday essentials,” the CRA said.

Carney has described the multibillion-dollar credit plan as a bid to alleviate the burden of sales taxes incurred on groceries and household essentials.

The Conservatives, meanwhile, called the measure a “Band-Aid solution,” saying it does not address the root causes of the high cost of living. However, they voted to pass the legislation when the then-minority Liberals introduced it earlier this year.

The Parliamentary Budget Officer has estimated that the program will cost $12.4 billion over five years.

Who’s Eligible for the One-Time Rebate?

Any Canadian 19 or older who filed their 2024 tax return and was entitled to receive the GST/HST credit in January 2026 will receive the one-time top-up payment.

The payment is calculated based on an individual’s annual GST/HST credit amount for the period from July 2025 to June 2026 and provides a 50 percent increase to that total annual amount, the CRA said.

For instance, if the person’s total annual GST/HST credit was $400, the one-time top-up payment will be $200.

Marital status and number of children are also factors in determining how much a household will receive, the agency said.

A single individual with no children could receive a maximum payment of $267, while a single-parent family could receive up to $441 with one child, $533 with two children, $625 with three children, $717 with four children.

A married or common-law couple with no children could receive a maximum payment of $349, while two-parent families with one child could receive up to $441. This could go up to $533 for families with two children, $625 with three children, and $717 with four children. Only one parent will receive the payment.

Parents with shared custody of a child will split the amount they would have received if they had full custody of the child, the CRA said.

Those who are signed up for direct deposit will notice the funds being credited to their accounts in the same manner as how the GST/HST credit typically appears. The payment will not be handed out to anyone with an outstanding balance to the CRA.

Who Is Eligible for the CGEB?

The CRA determines eligibility for the grocery benefit automatically when individuals file their 2025 tax return. The agency said the CGEB will have the same eligibility criteria as the GST/HST credit.

A single person with no children who has an adjusted net income of less than $56,181 will receive the GST rebate, according to the CRA website. Single parents with one child must have a net income of less than $63,161 while those with three children must make less than $70,521.

Couples with no children who have an adjusted net income of $56,181 or less will also qualify for the rebate. Couples with two children must bring in less than $66,841 while those with four must make less than $74,201.

A single individual can expect to receive up to $679 for the benefit period from July 2026 to June 2027, while those who are married or have a common-law partner could receive as much as $890. Families will also receive $234 for each eligible child younger than 19.

Quarterly CGEB payments will use the same payment schedule as the GST/HST credit beginning in July. The agency noted that the payment may still appear on bank statements as GST/HST credit while Canadian financial institutions update their systems to reflect the new name.

Those who have registered for direct deposit will have their funds transferred directly to their bank accounts, while those who have not will receive a paper cheque by mail.