GST/HST Credit in Canada: What You Need to Know This Year

Understanding the GST/HST Credit and the 2026 Benefit Changes

The Goods and Services Tax/Harmonized Sales Tax (GST/HST) credit is a tax-free payment from the Canadian government. It helps individuals and families with low or modest incomes offset the sales tax they pay throughout the year. For many households, these quarterly payments provide essential breathing room for everyday expenses like groceries and bills.

This year brings several important updates to how this credit works. The government recently announced a transition to a new name and a boost in payment amounts. Understanding these changes is the first step toward making sure you receive every dollar you are entitled to based on your family situation.

The credit is designed to be simple for most Canadians to access. It does not require a separate application if you already file your annual income tax return. However, staying informed about the eligibility rules and the payment schedule is still vital for your household budgeting and planning.

In this guide, we will break down who qualifies for the credit and how much money you might receive in 2026. We will also explore the new Canada Groceries and Essentials Benefit, which is the updated name for this program starting later this year. This information is intended to help you navigate the system with confidence.

What exactly is the GST/HST Credit?

The GST/HST credit is a non-taxable amount paid four times a year. Because it is non-taxable, you do not have to report these payments as income on your tax return. It is essentially a refund of the sales tax you pay when you buy goods and services in Canada.

The amount of money you get is based on your adjusted family net income. This figure is calculated using the information from your most recent tax return. The Canada Revenue Agency (CRA) uses your income, marital status, and the number of children you have to determine your specific payment amount.

It is important to remember that this is a federal program, but it often works alongside provincial credits. Depending on where you live, your quarterly payment might include extra money from your province or territory. These amounts are usually combined into one single deposit in your chequing account or one cheque in the mail.

The New Canada Groceries and Essentials Benefit

Starting in July 2026, the GST/HST credit is being officially rebranded as the Canada Groceries and Essentials Benefit. This change is more than just a new name; it reflects a significant increase in the support provided to eligible Canadians. The government has introduced this to help with the rising cost of living.

One of the most exciting parts of this change is a one-time top-up payment. This extra payment is expected to be issued by June 2026. It will be equal to 50% of your total GST/HST credit amount from the 2025-2026 benefit year. This is designed to provide immediate relief for household costs.

In addition to the one-time boost, the government is increasing the regular quarterly payments by 25% for the next five years. This means that starting with the July 2026 payment, eligible residents will see a noticeable increase in their bank accounts. This enhancement aims to help families keep up with the price of essential items at the grocery store.

Who is Eligible for the Credit in 2026?

To be eligible for the GST/HST credit, you must be a resident of Canada for income tax purposes. This residency must apply both in the month before the CRA makes a payment and at the beginning of the month the payment is issued. Most people who live and work in Canada permanently meet this requirement.

In terms of age, you generally must be at least 19 years old. However, there are exceptions for younger residents. You may qualify if you are under 19 and have (or had) a spouse or common-law partner. You also qualify if you are a parent who lives with your child.

The most critical step to becoming eligible is filing your taxes. Even if you earned no income during the year, you must file a tax return to receive the credit. The CRA uses that return to verify your income and automatically calculate if you qualify for the payments. Without a filed return, the CRA cannot send you the money.

How the Payments are Calculated

The amount of your credit depends on your “base year” income. For the first half of 2026 (January and April), the payments are based on your 2024 tax return. For the second half of the year (July and October), the payments are based on your 2025 tax return, which you file in the spring of 2026.

If you are single, the CRA looks only at your individual net income. If you have a spouse or common-law partner, your incomes are combined. This total is your adjusted family net income. As your income rises, the amount of credit you receive gradually decreases until it reaches zero.

The government also provides extra amounts for each child under the age of 19. If you have shared custody of a child, you and the other parent may each receive half of the credit for that child. It is important to ensure your custody arrangements are correctly registered with the CRA to avoid payment delays.

Illustrative Payment Amounts for 2026

While the exact amount varies for every person, the CRA provides maximum limits for each benefit year. These numbers help you estimate what a typical household might receive. Below is a table showing the maximum annual amounts for the 2025-2026 benefit year (before the new 2026 boost takes full effect).

With the new Canada Groceries and Essentials Benefit top-up and increase, these totals will go up. For example, a single person could receive a total of approximately $950 CAD this year when the top-up is included. A family of four could see their total support rise to roughly $1,890 CAD for the year.

Important Payment Dates in 2026

The GST/HST credit is usually paid on the fifth day of the month at the start of each quarter. If the fifth falls on a weekend or a federal holiday, the payment is issued on the last business day before that date. This ensures that you have access to the funds as early as possible.

For the 2026 calendar year, the scheduled payment dates are: January 5, 2026; April 2, 2026; July 3, 2026; and October 5, 2026. Mark these dates on your calendar so you can monitor your bank account or mailbox. If you do not receive your payment within ten business days of these dates, you should contact the CRA.

There is a special rule for small payment amounts. If your total annual credit is less than $200 CAD, the CRA might not send four quarterly payments. Instead, they may send the entire amount in one single payment in July. This reduces the cost of processing many small payments throughout the year.

How to Apply as a Newcomer

If you are a new resident of Canada, you do not have a prior year’s tax return on file yet. This means the CRA does not automatically know you are here or what your income looks like. In this case, you must manually apply to start receiving your payments before you file your first tax return.

Newcomers without children should fill out Form RC151, which is the GST/HST Credit Application for Individuals Who Become Residents of Canada. If you have children, you should use Form RC66, which is the Canada Child Benefits Application. This single form will register you for the GST/HST credit and the Canada Child Benefit at the same time.

Once you have submitted these forms, the CRA will process your information and determine your eligibility. After your first year in Canada, you will no longer need to use these forms. Simply filing your annual tax return each spring will keep your benefits active and up to date.

Keeping Your Information Current

Your life can change quickly, and these changes often affect your eligibility for government benefits. If you move to a new province, get married, or have a new baby, you must tell the CRA as soon as possible. These life events can increase or decrease the amount of money you are entitled to receive.

The fastest way to update your information is through your CRA My Account online. You can change your address, update your marital status, and manage your direct deposit settings there. Keeping your direct deposit information accurate is the best way to ensure your money arrives safely and on time without waiting for a cheque.

If you wait too long to report a change, you might receive the wrong amount. If you are underpaid, you will have to wait for the CRA to catch up. If you are overpaid, the CRA will ask you to pay the extra money back. Reporting changes quickly helps you avoid these stressful financial adjustments later on.

Income Thresholds and Phase-outs

The GST/HST credit is designed for households with low to modest incomes. Because of this, the benefit begins to decrease once your income passes a certain level. This is known as a phase-out. For the 2026 benefit year, the reduction usually starts when family income exceeds roughly $40,000 CAD.

The exact point where your credit reaches zero depends on your family size. For example, a single person with no children might stop receiving the credit once their income reaches approximately $56,000 CAD. A family with several children will have a much higher threshold before their credit is completely phased out.

It is helpful to view the credit as a sliding scale rather than an “all or nothing” benefit. Even if your income increases slightly, you may still qualify for a partial payment. Every dollar counts, so it is always worth filing your taxes to see where you land on the eligibility scale for that year.

Summary of Steps for 2026

To ensure you get the most out of the GST/HST credit and the upcoming Canada Groceries and Essentials Benefit, follow a few simple steps. First, file your 2025 income tax return before the April 30, 2026, deadline. This is the single most important thing you can do to keep your payments coming.

Second, sign up for direct deposit if you have not already. This prevents your payments from being lost or delayed in the mail. It also ensures that the 2026 top-up payment arrives in your account as soon as the government releases it. You can set this up through your bank or directly with the CRA.

Finally, keep an eye on your mail or your CRA My Account for a notice of entitlement. This notice will tell you exactly how much you will receive for the new benefit year starting in July. Reviewing this notice helps you understand your household budget for the months ahead and confirms that the CRA has your correct information.

The transition to the new benefit program is a positive move for many Canadians. While the system can feel complicated, it is built to support those who need it most. By staying organized with your taxes and keeping your personal details current, you can make the most of this financial support in 2026.