Chamber
commons
Stage
3rd Reading
Introduced
Jan 28, 2026
Progress
This bill temporarily boosts GST/HST credit payments to help low- and middle-income Canadians afford groceries and essentials.
Key Changes
- Creates a one-time 50% boost to the GST/HST credit for the 2025–2026 benefit year, paid in January 2026
- Creates a 25% ongoing increase to the GST/HST credit from July 2026 to April 2031 (five years)
- Sets specific dollar amounts for the enhanced credit: up to $1,047 per adult and $552 per child for the January 2026 payment
- Includes special rules for shared-custody parents to ensure both parents receive a fair share of the enhanced credit
- Indexes the new 25% ongoing increase to inflation starting after 2026
- Includes coordinating amendments to align with Budget 2025 Implementation Act (Bill C-15) if it passes
Gotchas
- The January 2026 one-time payment is based on 2024 tax return information, meaning Canadians who did not file their 2024 taxes would not automatically receive it
- The benefit phases out at higher income levels — individuals with adjusted income above $45,521 (January 2026) or $46,432 (ongoing) receive reduced amounts
- The 25% ongoing increase is set to expire after April 2031 unless further legislation extends it
- The bill includes coordinating amendments that only take effect if the separate Budget 2025 Implementation Act (Bill C-15) also receives royal assent, creating a dependency between two bills
- The enhanced amounts are delivered through the existing GST/HST credit system, so no new application process is required for those already enrolled
Who's Affected
- Low- and middle-income individuals and families who already receive the GST/HST credit
- Single adults with no dependants earning below approximately $45,521
- Families with children who qualify for the GST/HST credit
- Shared-custody parents who split time with their children
- Seniors on fixed incomes who receive the GST/HST credit
Vibes
0 responses
Gotchas
- The January 2026 one-time payment is based on 2024 tax return information, meaning Canadians who did not file their 2024 taxes would not automatically receive it
- The benefit phases out at higher income levels — individuals with adjusted income above $45,521 (January 2026) or $46,432 (ongoing) receive reduced amounts
- The 25% ongoing increase is set to expire after April 2031 unless further legislation extends it
- The bill includes coordinating amendments that only take effect if the separate Budget 2025 Implementation Act (Bill C-15) also receives royal assent, creating a dependency between two bills
- The enhanced amounts are delivered through the existing GST/HST credit system, so no new application process is required for those already enrolled
Summary
Bill C-19, called the Canada Groceries and Essentials Benefit Act, changes the Income Tax Act to increase the GST/HST credit (GSTC) — a tax-free payment the government sends to lower-income Canadians to offset sales taxes they pay. The bill creates two boosts: a one-time 50% increase for the 2025–2026 benefit year (paid in January 2026), and a 25% increase starting in July 2026 that continues for five years until April 2031. The GST/HST credit is already paid quarterly to eligible Canadians based on their income and family size. This bill adds extra amounts on top of the regular credit, with the size of the boost depending on whether you have a spouse or partner, how many children you have, and your income level. People with higher incomes receive reduced amounts or nothing, as the benefit phases out above certain income thresholds. The bill was introduced in January 2026 in response to the rising cost of living, particularly the cost of groceries and everyday essentials. It is aimed at helping low- and middle-income individuals and families who are most affected by inflation and higher prices.
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Vibes
0 responses