Canada’s New Grocery Benefit & GST/HST Credit Increase: What You Need to Know

Canada’s New Grocery Benefit & GST/HST Credit Increase: What You Need to Know

Key impact: If you are a low- or middle-income Canadian, you will soon receive a one-time grocery benefit and larger quarterly GST/HST credit payments. This money is meant to help you cope with rising food prices. You do not need to apply—the Canada Revenue Agency (CRA) will send it automatically based on your most recent tax return.

What is this benefit?

The Canadian government has announced two tax-free payments to help households with inflation-driven grocery costs:

1. One-time grocery benefit – A single payment to help offset higher food prices.
2. Increased GST/HST credit – Your regular quarterly rebate will be larger for a period of time.

Both payments are delivered by the CRA. You will receive them by direct deposit or cheque.

Who is affected?

You are affected if you:

• Are a Canadian resident for tax purposes.
• File your taxes every year.
• Meet the income thresholds for the GST/HST credit.

The payments are adjusted based on your household size and income. The lowest earners receive the maximum amounts. If you are a low- or middle-income family, you likely qualify.

How much will you get?

The exact amounts depend on your income and family size. The CRA will calculate your payment based on your most recent tax return. Check your CRA My Account for specific dates and amounts.

When will you receive it?

Expect the grocery benefit and the increased GST/HST credit to arrive in the coming months. The CRA will issue payments on a set schedule. Log into your CRA My Account to see your payment dates.

What you should do

Follow these steps to ensure you get your full payment:

• File your 2024 taxes early. The CRA uses your most recent tax return to determine eligibility. If you haven’t filed yet, do so as soon as possible.
• Update your personal information. Make sure your address and direct deposit details are current with the CRA. You can do this through CRA My Account.
• Check your CRA My Account regularly. Look for payment dates and amounts. This is the fastest way to confirm your benefits.
• Do not apply separately. There is no application form. The CRA will send the payments automatically to eligible Canadians.

Bottom line

This new grocery benefit and GST/HST credit increase are designed to give immediate, tax-free relief to low- and middle-income Canadians struggling with high food costs. You do not need to apply—just file your taxes and keep your information up to date. Check your CRA My Account for your payment dates and amounts. This support is a crucial lifeline for families facing higher costs at the checkout.