New Canada Benefit Helps Canadians and Newcomers

On January 26, 2026 Prime Minister Mark Carney announced a new benefit to help Canadians and newcomers pay for groceries and other daily needs. The benefit is called the Canada Groceries and Essentials Benefit.

This new benefit is part of the government’s plan to create a stronger economy and make life more affordable for people across Canada.

What Is the Canada Groceries and Essentials Benefit?

The Canada Groceries and Essentials Benefit replaces the old GST (Goods and Services Tax) credit. While the name has changed, the goal to help people with lower incomes afford everyday costs remains the same. Additionally, the government is providing more financial support than before.

Starting in July 2026, the benefit amount will increase by 25 percent and will stay at this higher level for the next five years. In addition, the government will provide a one-time extra payment this year (2026) which will be a 50 percent increase.

How Much Money Will People Receive?

The amount of money a person receives depends on their family size. A family of four can receive up to $1,890 in 2026, and about $1,400 each year for the next four years. A single person can receive up to $950 in 2026, and about $700 each year for the next four years.

This money is meant to help pay for groceries, household items, and other essential daily expenses.

Who Can Get This Benefit?

The Canada Groceries and Essentials Benefit is available to people who are 19 years of age or older and who are residents of Canada, including most newcomers. To qualify, a person must earn less than a certain income amount. For example, in 2024, the income limit for a single person with no children is $56,181 per year.

What Do You Need to Do to Receive It?

To receive the benefit starting in July 2026, a person must have filed a 2025 tax return. For those who have filed their 2025 taxes, the government is expected to begin sending payments every three months, starting in July 2026.

Important Information

Newcomers who arrived in Canada after the most recent tax filing season can still receive the benefit. They need to complete and send Form RC151 for the year they became a resident of Canada for tax purposes.