GST/HST Credit
The GST/HST credit is a tax-free quarterly payment from the CRA designed to help individuals and families with low and modest incomes offset the GST/HST they pay on everyday purchases. You don't need to apply separately — the CRA automatically determines eligibility when you file your T1 tax return.
Since 1 July 2026 the credit has been paid under a new name, the Canada Groceries and Essentials Benefit (CGEB), with the same automatic return-based eligibility, the same income test and the same quarterly schedule. For the July 2026 to June 2027 period (based on your 2025 return), the maximum annual payment is $679 for a single person ($890 if married or common-law), plus $234 per child under 19. The benefit phases out at 5% of adjusted family net income above $46,432. Payments are issued in July, October, January, and April.
To receive the payment, you must file a T1 return each year — even if you have no income to report. This is one of several reasons low-income Canadians should always file: it ensures eligibility for the CGEB, the Canada Child Benefit, the Canada Workers Benefit, and provincial credits.
How it works
Eligibility and payment amounts are recalculated once a year, every July, using the tax return you filed for the prior calendar year — the benefit year that runs July 2026 to June 2027, for example, is based on your 2025 return. You don't submit a separate application in most cases; simply filing your T1 return, even with zero income to report, is what triggers the CRA's automatic eligibility assessment.
Married and common-law couples receive a single combined payment calculated on their combined adjusted family net income rather than two separate payments, and the amount is reduced gradually — at 5% of adjusted family net income above the $46,432 threshold for the July 2026 to June 2027 benefit year — until it phases out completely. Adding a child to your family, whether through birth or adoption, typically increases your payment automatically once it's registered with the CRA, without a separate application.
Since 1 July 2026 the credit has been paid as the Canada Groceries and Essentials Benefit (CGEB). The mechanic carried over unchanged — automatic eligibility based on your filed tax return, with no separate application for most recipients — so continuing to file a return every year, even with no income, remains the way to stay eligible. The CGEB amounts are 25% higher than the credit would otherwise have been, for five years from July 2026.
Example: how the income phase-out reduces your credit
Say you're a single person with an adjusted family net income of $51,432 for the July 2026 to June 2027 benefit year. That's $51,432 - $46,432 = $5,000 above the phase-out threshold.
The payment is reduced by 5% of that excess: $5,000 x 5% = $250. Starting from the maximum annual payment of $679 for a single person, your actual payment works out to $679 - $250 = $429 for the year.
Frequently asked questions
Do I need to apply separately for the GST/HST credit?
No — filing your T1 return each year, even with no income to report, is enough for the CRA to automatically assess your eligibility; the main exception is people new to Canada in their first year, who typically need to submit a separate application first.
What happened to the GST/HST credit after July 2026?
It is now paid as the Canada Groceries and Essentials Benefit (CGEB). The automatic, return-based eligibility process carried over unchanged, so continuing to file a tax return every year remains the way to stay eligible, and the amounts are 25% higher than the credit would otherwise have been.
Why did my payment change even though my income stayed about the same?
The July payment is recalculated using the return you filed for the prior calendar year, so changes in marital status or the number of children in your care can shift the payment independently of any change in your actual income.
Related Terms
GST (Goods and Services Tax)
The GST is a 5% federal value-added tax applied to most goods and services sold in Canada.
HST (Harmonized Sales Tax)
HST combines the 5% federal GST with a provincial portion into a single harmonized tax, simplifying compliance for businesses operating in multiple provinces.
CCB (Canada Child Benefit)
The Canada Child Benefit (CCB) is a tax-free monthly payment from the CRA to eligible families to help with the cost of raising children under 18.
CRA (Canada Revenue Agency)
The Canada Revenue Agency (CRA) is the federal body responsible for administering Canada's tax laws, collecting income taxes and GST/HST, and delivering benefit programs such as the Canada Child Benefit (CCB) and the GST/HST credit.