TORONTO, July 2, 2026 – The Canada Revenue Agency will issue the first Canada Grocery and Essentials Benefit payment on July 3, formally replacing the former GST/HST credit. The new payment cycle will be calculated using 2025 tax return information, and benefit rates will increase by 25 per cent beginning this July. Low-income families, newcomers and people with no employment income may not receive the payment on time if they have not filed their taxes or updated their personal information.
The benefit is a tax-free quarterly payment, and most residents do not need to submit a separate application. The CRA automatically determines eligibility based on annual tax return information. Even people with no employment income during the year still need to file a tax return, because otherwise the system cannot calculate family income or the benefit amount.
The July and October payments will be based on adjusted family net income for 2025, so the amounts may differ from payments received in January or April. A 25 per cent increase in benefit rates also does not mean every household will receive exactly 25 per cent more in its bank account. Family income, marital status, the number of eligible children and shared custody arrangements can all affect the actual amount.
People who filed their taxes late this year may experience a temporary interruption in payments. Once the CRA completes the assessment and confirms eligibility, missed amounts are generally included in a later payment. Anyone who has not yet received a Notice of Assessment should first confirm that the tax return was successfully submitted rather than waiting only for a bank deposit.
Newcomers who have recently become Canadian tax residents and have not yet filed their first tax return may apply for benefits through a separate process. New residents without children under 19 may submit Form RC151. Families with children under 19 may also need to submit a child benefit application and proof of birth. Documents that are not in English or French generally need to be accompanied by a translation.
Some newcomers do not file taxes because they had no income, which can prevent their benefit eligibility from being established. Payments may also be delayed or changed if residents fail to update the CRA after moving, getting married, separating or changing bank accounts.
Anyone who does not see a payment on July 3 can first sign in to their CRA account to check the expected payment amount, tax assessment status and benefit notices. They should also confirm that their address, marital status and direct deposit information are correct. If the CRA has sent a letter requesting additional documents, the recipient should respond using the method specified in the notice.
Residents who are unfamiliar with online accounts or English-language forms can ask a tax preparer, family member or community volunteer tax clinic for assistance. Submitting duplicate applications will not necessarily speed up processing and may instead create inconsistencies in the information on file.（LJI by Yuanyuan）
