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Canada Groceries and Essentials Benefit

July 21, 2026

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Canada Groceries and Essentials Benefit

The Canada Groceries and Essentials Benefit, formerly known as the GST/HST Credit, is a federal benefit designed to provide financial assistance to eligible low- and modest-income individuals and families in Canada.

This benefit helps offset the GST and HST paid on everyday goods and services. Eligibility and payment amounts are determined based on factors such as family net income, marital status, number of eligible children, and residency status.

To receive the benefit, individuals must file their annual income tax return. The Canada Revenue Agency (CRA) uses the information from the tax return to determine eligibility and calculate the payment amount.

What is GST?

The Goods and Services Tax (GST) is a federal consumption tax applied to most goods and services purchased or used in Canada.

GST applies to different types of taxable supplies, including:

  • Goods and services purchased within Canada.
  • Real property, including land and buildings.
  • Intangible property, such as trademarks, patents, and digitally purchased products.

The federal GST rate is 5%.

GST and HST Rates Across Canada

Some provinces have combined their provincial sales tax with GST to create the Harmonized Sales Tax (HST).

HST applies in the following provinces:

  • New Brunswick
  • Newfoundland and Labrador
  • Nova Scotia
  • Prince Edward Island
  • Ontario

The combined HST rates are:

  • 13% in Ontario.
  • 15% in other participating provinces.

Provincial Sales Tax Differences

  • British Columbia: Applies a 5% GST and a separate 7% provincial sales tax.
  • Alberta: Does not have a provincial sales tax, so residents only pay the 5% GST.

What is the GST/HST Credit?

The GST/HST Credit is a tax-free payment provided to eligible individuals and families with lower incomes to help reduce the impact of GST and HST costs.

Eligibility is determined based on the taxpayer's net income for the taxation year.

The CRA generally issues GST/HST Credit payments in four equal instalments during the year:

  • July
  • October
  • January
  • April

If the quarterly payment amount is less than $50, CRA issues a single payment in July.CRA may also issue payments for outstanding amounts related to previous years.

How is the GST/HST Credit Calculated?

The GST/HST Credit amount is calculated based on the family's financial situation and household details, including:

  • Family net income.
  • Worldwide income from all sources inside and outside Canada.
  • Marital status.
  • Number of eligible children.
  • Residency status.

For married or common-law couples, only one spouse can receive the GST/HST Credit. However, the payment amount remains the same because it is calculated using the combined family net income.

Any changes in family circumstances must be reported to CRA as they may affect the benefit amount.

Who Can Apply for the GST/HST Credit?

Individuals may qualify for the GST/HST Credit if they are residents of Canada for income tax purposes at the beginning of the month when CRA issues payments and meet at least one of the following conditions:

Individuals 19 Years of Age or Older

Individuals who are 19 years of age or older may qualify for the GST/HST Credit.

Individuals Under 19 Years of Age

Individuals under 19 years of age may qualify if:

  • They are currently or previously a parent.
  • They have or previously had a spouse or common-law partner.

Important Note: Individuals turning 19 before April 1, 2026, should file their 2025 tax return, even if they have no income, to receive the GST/HST Credit.

Who Does Not Qualify for the GST/HST Credit?

Individuals may not qualify for the GST/HST Credit if, at the beginning of the month when the payment is issued:

  • They are confined to a prison or similar institution for 90 days or more.
  • They are exempt from paying Canadian income tax because they are officers, servants, employees, or family members of another country’s government, such as diplomats.

Individuals who are exempt from Canadian taxation under Section 149 of the Income Tax Act are not eligible to receive benefits such as:

  • GST/HST Credit.
  • Canada Child Benefit.
  • Ontario tax credits.

GST/HST Credit for Dependent Children

A taxpayer may receive the GST/HST Credit for each eligible dependent child who meets all of the following requirements:

  • The child is under 19 years of age.
  • The child has never had a spouse or common-law partner.
  • The child has never been a parent.
  • The child lived with the taxpayer or was claimed as a dependant by the taxpayer or spouse.

The child must also be a resident of Canada.

Applying for the GST/HST Credit

Individuals generally do not need to submit a separate application for the GST/HST Credit.To receive the benefit, they must file their annual income tax return.

The tax return must include accurate information for both spouses or common-law partners because eligibility is based on the combined family net income.

For married or common-law couples:

  • Only one spouse can receive the GST/HST Credit.
  • The benefit amount remains the same regardless of which spouse receives it.

Notice of Determination

The CRA does not combine GST/HST Credit payments with income tax refunds.

After reviewing the tax return, CRA issues a Notice of Determination in July. This notice provides details about:

  • Eligibility for the benefit.
  • The amount of credit received.
  • How the benefit amount was calculated.
  • Payment details.

If direct deposit is set up with CRA, the notice will confirm the deposited amount.

Reporting Changes to CRA

Since the GST/HST Credit depends on family circumstances, individuals must inform CRA when changes occur.

CRA should be notified if:

  • Marital status changes.
  • A new child is born or added to the family.
  • A child receiving the credit is no longer living with the taxpayer.
  • The taxpayer becomes a spouse, common-law partner, or parent.
  • The taxpayer or spouse is no longer a resident of Canada.
  • The taxpayer or spouse passes away.

Any adjustments resulting from these changes will generally be reflected in the next quarterly GST/HST Credit payment.

Turning 19 Years Old

To qualify for the GST/HST Credit, an individual generally must be 19 years old unless they are already a parent, married, or living common-law.

When an individual reaches age 19, they should file their tax return based on the previous tax year to begin receiving payments.

For example:

  • If a taxpayer turns 19 in July, August, or September 2025, they may receive their first payment in October 2025.
  • If a taxpayer turns 19 in October, November, or December 2025, they may receive their first payment in January 2026.

Newborn Children and GST/HST Credit

CRA uses information from the Canada Child Benefit (CCB) to determine the number of eligible children when calculating the GST/HST Credit.

If a child is not registered for the Canada Child Benefit, individuals should complete Form RC66 to register the child.

GST/HST Credit for New Immigrants

Individuals who become residents of Canada may qualify for the GST/HST Credit.

New residents must complete:

  • Form RC151 - GST/HST Credit and Canada Carbon Rebate Application for Individuals Who Become Residents of Canada.

Income earned before arriving in Canada may be considered when CRA calculates eligibility for GST/HST Credit and other benefits.

Additional GST/HST Credit for Individuals Living Alone

Individuals who are single, separated, divorced, or widowed may qualify for an additional GST/HST Credit amount.

This additional amount may apply whether or not the individual has children.

For individuals without children, income must exceed the required threshold to qualify for the additional credit.

The CRA Benefits Department calculates this amount automatically after the tax return has been filed.

Tax software programs are designed to perform these calculations accurately, so taxpayers do not need to memorize the formulas or calculation amounts.