Who is eligible for Canada’s new grocery rebate and how it works

(Horizon Weekly / OTTAWA) — The federal government has unveiled a new benefit aimed at helping Canadians manage the rising cost of groceries and other everyday essentials. Prime Minister Mark Carney announced the Canada Groceries and Essentials Benefit, an expanded and boosted version of the existing Goods and Services Tax (GST) credit. The measures are designed to provide direct financial relief to low- and moderate-income households nationwide.

Under the new plan, more than 12 million Canadians will receive extra support starting this spring, if approved by Parliament. The benefit builds on the existing GST credit with a one-time top-up this year, equal to 50 per cent more than what recipients would normally receive. It will also include a longer-term increase of 25 per cent for five years beginning in July 2026.

What this means for families and individuals

According to government estimates, the combined support could deliver:

• Up to $1,890 this year for a family of four
• Roughly $1,400 a year for the next four years for families
• Up to $950 this year for a single adult
• About $700 annually in future years for individuals

These amounts are paid quarterly and are added to the regular quarterly GST benefit payments. The aim is to put more money directly into the pockets of Canadians managing rising food costs.

Who is eligible?

Eligibility for the new benefit uses the same criteria as the existing GST credit. To qualify:

• You must file your income tax return for 2024 if you have not already done so
• You must be a resident of Canada for tax purposes
• Applicants must be 19 or older, or under 19 with a spouse or as a parent

There is no separate application process. If you qualify for the GST credit and have filed your taxes, you should be automatically eligible for the enhanced grocery benefit.

Why this matters

Food prices have been rising faster than overall inflation in many parts of the country, making grocery bills a growing concern for households on tight budgets. The government says the enhanced benefit will help families cover everyday costs without forcing them to rely on credit or emergency savings.

In addition to the direct payments, Ottawa is also taking steps to address the root causes of food insecurity by developing a new National Food Security Strategy and investing in measures that support producers and strengthen supply chains. This includes money set aside to help food businesses manage rising costs and funding to support food banks and local food programs.

Next steps

The enhanced Canada Groceries and Essentials Benefit and related measures still require approval from Parliament and Royal Assent before they can take effect. If passed, the one time top up could be paid as early as spring, with the increased quarterly payments starting in July 2026.