Canada just announced a new grocery benefit & massive GST/HST Credit increase

If you've been feeling squeezed by rising grocery bills, you're not alone — and some relief is finally on the way.

The Canadian government just dropped major news about government payments, rolling out a new grocery benefit and boosting the GST/HST Credit in a big way.

Prime Minister Mark Carney made the announcement on Monday morning from an Ottawa grocery store, saying millions of Canadians will soon see more money in their bank accounts.

The new Canada Groceries and Essentials Benefit is a one-time payment aimed at tackling food inflation, delivering extra cash this year to more than 12 million Canadians. Plus, Carney announced a longer-term increase to quarterly GST/HST Credit payments, kicking in this July.

Here's what you need to know.

How much money could you get?

Carney said his government is raising the current GST/HST Credit by 25% for the next five years. On top of that, there will be a one-time grocery benefit payment this year, worth 50% of your usual annual credit.

So for 2026:

• A single person could get up to approximately $950
• A family of four could get up to approximately $1,890

Starting in 2027 and continuing for four more years, payments will still be higher than they used to be — around $700 for a single person and $1,400 for a family of four.

According to exclusive reporting from The Toronto Star, the first top-up — that one-time 50% boost — will land in June, while the 25% bump to quarterly payments will start with the new benefit year in July.

Who's eligible for the new grocery benefit?

Essentially, you're eligible for these new and boosted payments as long as you are already eligible for the GST/HST Credit. That means you're eligible if you:

• Are a Canadian resident for tax purposes
• Are at least 19 years old (or meet specific criteria if you're younger)
• File a 2025 tax return, when the time comes (even if you made no income)

The amount you receive depends on your adjusted family net income. You'll get the full GST/HST Credit if your income is $46,432 or less, regardless of your family size.

For single individuals, there's also a minimum income threshold to get the full single supplement. You must earn at least $23,264 to receive the maximum amount available to you. So to get the full credit, single people must make between $23,264 and $46,432.

If you earn more than that, your credit gets reduced — and it cuts off completely around (roughly):

• $60,000 for a single person
• $73,600 for a family with two kids

Why now?

Carney pointed to the rising food prices for essentials like ground beef, orange juice and coffee, saying they've jumped as much as 24% in the past year.

"Everyone pays the same GST on items that they buy, no matter how much money they make. But since groceries and other essentials make up a larger share of the budget of lower-income Canadians, the GST puts a higher burden on those less well-off," Carney said on Monday.

"Last year, Food Banks Canada announced that nearly 2.2 million Canadians went to food banks every month," He went on. "The rise in food prices means that a lot of these Canadians need more support right now."

For now, as food prices keep climbing, every extra dollar can help stretch the budget a little further. And with the first payment coming soon, it's a good time to check your eligibility and make sure you file your tax return on time this spring.