This year’s GST credit update is a reminder that small tax changes can have a real impact when costs keep rising.
Inked by Blinc
January 27, 2026
At Blinc, we spend a lot of time watching the parts of the tax system that don’t always get much attention but quietly make a real difference. Tax credits are a big one. The GST credit falls squarely into that category and this year, it’s changing in a meaningful way.
The federal government has announced a boost to the existing GST credit, now rebranded as the Canada Groceries and Essentials Benefit. On paper, it looks like a small policy tweak. In practice, it means hundreds of extra dollars for millions of Canadians.
If you’ve heard about a GST credit boost and are wondering “does this apply to me?”, here’s the straightforward breakdown.
The GST or HST credit is a tax free payment designed to offset the sales tax you pay on everyday purchases.
Everyone pays the same GST at the checkout. The difference is how much of your income those essentials take up. When groceries, utilities, and household basics make up a larger share of your budget, the GST hits harder.
The GST credit exists to rebalance that.
This year, the federal government has expanded the GST credit and renamed the expanded version the Canada Groceries and Essentials Benefit.
The benefit is:
If you file your taxes, the CRA does the rest.
Eligibility is based on personal net income, not job title and not business revenue. The CRA uses the term “low or modest income,” but that label is misleading. There is no single cutoff where the credit suddenly disappears. Instead, the amount phases out gradually as income rises, and depends on your household situation.
In practice, people who often qualify include:
If you run a business, this is especially relevant. A growing business does not automatically mean a high personal income. Eligibility is tied to what you personally report on your tax return, not what flows through your company.
If your income varies year to year, you may qualify even if you didn’t expect to.
Before the expansion, typical annual GST credit amounts were approximately:
That worked out to roughly $135 to $275 per quarter, depending on income and household details.
There are two changes this year:
A one time top up
Eligible Canadians will receive an extra payment equal to 50% of their usual GST credit.
Higher regular payments going forward
Starting in July, quarterly GST payments increase by 25% and remain at that higher level for the next five years.
Based on government estimates:
Future years will be lower than this one time peak, but still higher than the previous system. Payments remain tax free and follow the same quarterly schedule.
Food prices remain high even as broader inflation has started to cool. Groceries and household essentials are not expenses you can easily reduce, and increases show up immediately in weekly spending.
At the same time, higher interest rates have put pressure on cash flow through rent increases, mortgage renewals, and higher borrowing costs. For many households, there is simply less room month to month.
From the government’s perspective, boosting the GST credit is one of the fastest ways to respond. It uses an existing system, does not require applications, and delivers cash to households that feel rising costs most directly.
The expansion is framed as immediate relief, paired with a bridge to longer term affordability measures.
No extra steps are required.
To receive the increased payments, make sure you:
If those boxes are checked, the CRA calculates eligibility and issues payments automatically.
Many Blinc clients fall into the GST credit range without realizing it, including:
Because eligibility is tied to personal net income, choices around salary, dividends, and timing can affect access to credits like this one. Tax credits are part of the full planning picture.
At Blinc, we track credits like this because small structural decisions add up, and because benefits only help if you actually receive them.
📍Book a demo with us today and we’ll be happy to chat more about the GST credit and other tax credits with you!
