Canada’s New Groceries and Essentials Benefit Explained (With Simple Examples)

Groceries are expensive. Rent is high. Bills don’t stop.

To help Canadians manage the rising cost of food and daily essentials, the Government of Canada has introduced a new support payment called the Canada Groceries and Essentials Benefit.

This benefit replaces and improves the old GST/HST Credit and gives more money than before, not just once — but every year going forward.

If you file taxes in Canada, this blog is important for you.

Let’s explain it in very simple terms.

What Is the Canada Groceries and Essentials Benefit?

The Canada Groceries and Essentials Benefit is an enhanced version of the GST/HST Credit.

There are two big changes:

1️⃣ A one-time top-up payment
2️⃣ A 25% increase in the regular GST/HST benefit amount

This means Canadians don’t just get a one-time payment — they also receive higher quarterly payments every year.

The benefit is paid by CRA.
You don’t apply separately.
You qualify by filing your tax return.

Who Can Get This Benefit?

You may qualify if:

You live in Canada
You have low or moderate income
You file your taxes (even if you had little or no income)

This includes students, newcomers, single individuals, married couples, families, and seniors.

If you were already receiving GST credits, you’ll now receive 25% more money.

Simple Examples (This Is How It Works)

Example 1: Single Individual

Let’s say Aman is a student or single worker earning around $18,000 a year.

Because Aman files his tax return, CRA calculates his benefit like this:

Step 1: Old GST/HST Credit (Before Increase)

👉 $543 per year

Step 2: 25% Increase in Regular Benefit

The government increases this amount by 25%:

👉 $543 × 25% = $136
👉 New annual benefit = $678

This $678 is paid in 4 quarterly payments every year.

Step 3: One-Time Top-Up (Before June 2026)

On top of the increased annual benefit, Aman also receives a one-time payment equal to 50% of the old GST credit:

👉 50% of $543 = $267
Paid as a single lump sum

Total Money Aman Receives

👉 $267 (one-time top-up)
👉 + $678 (new increased annual benefit)

🔹 Total = $945

This is real money deposited into Aman’s bank account to help with groceries and daily essentials.

If Aman does not file his tax return, he receives $0.

As a student, filing also unlocks tuition credits that can lead to larger refunds - learn more in our Student Tax Guide.

Example 2: Married Couple, One Income

Now let’s look at Rohit and Neha.

Rohit works full-time.
Neha is studying and has no income.
They also have two children.

CRA looks at their family income and family size together, which makes them eligible for higher household benefits.

Old Annual GST/HST Credit (Before Increase)
👉 Approximately $1,086

25% Increase Applied
👉 $1,086 × 25% ≈ $272
👉 New annual benefit = ~$1,358
(Paid over 4 quarterly payments)

One-Time Top-Up
👉 50% of old credit ≈ ~$533
Paid as a lump sum

Total Household Support

👉 ~$533 (one-time payment)
👉 + ~$1,358 (new annual benefit)

🔹 Total ≈ $1,891

This money helps Rohit and Neha cover groceries, utilities, school snacks, and other essential household expenses for their family.

To ensure your family income is calculated correctly, read our guide on The Right Way for Married Couples to File Taxes.

When Will the Money Be Paid?

The benefit works in two ways:

One-time extra payment (based on your last tax return)
Regular quarterly payments going forward

The money is sent directly to your bank account by CRA, just like GST credits.

No forms. No application.

Only tax filing matters.

Important: Filing Taxes Is Mandatory

Many people think:

“I didn’t earn much, so I don’t need to file.”

This is the biggest mistake.

If you don’t file your tax return:

CRA cannot calculate your benefit
You won’t receive this payment
You may also miss other benefits

Even if your income is $0, you must file.

Final Takeaway

The Canada Groceries and Essentials Benefit is real help for real people.

It puts extra money in your pocket to help with food and basic needs. But CRA only pays it if your tax return is filed and correct.

If you want these benefits, tax filing is not optional — it’s essential.

About the Author

Karishma Vidhani

Co-Founder, Toronto Tax Boutique

Karishma plays a key role in ensuring accuracy, structure, and compliance at Toronto Tax Boutique. Her journey from humble beginnings to building a successful firm has shaped her belief that financial clarity creates confidence. She is passionate about helping couples and families navigate tax filings correctly during important life transitions.