If you’re a newcomer to Canada struggling with grocery bills, I’ve got some genuinely good news for you. The federal government just announced a major expansion to a tax credit that could put up to $950 in your pocket this year—and that’s just the beginning.
I know what you’re thinking. Another government program with impossible hoops to jump through, right? Actually, this one’s different. If you’ve filed your 2025 tax return (or plan to), you’re probably already eligible. No complex applications, no waiting in line at Service Canada. The money just shows up in your bank account.
Let me break down everything you need to know about the Canada Groceries and Essentials Benefit, especially how it applies to international students, temporary foreign workers, and permanent residents.
What Is the Canada Groceries and Essentials Benefit?
Think of this as the government’s way of acknowledging that groceries have gotten ridiculously expensive. The benefit provides additional support for more than 12 million Canadians through what used to be called the GST/HST tax credit.
The program has two parts:
This year (2026): A one-time 50% boost to your regular GST credit, plus the ongoing 25% increase
Next five years (2027-2031): A permanent 25% increase to the quarterly payments
What does that actually mean in real money? Let’s get specific.
How Much Money Can You Actually Get?
Here’s where it gets interesting for newcomers. The amounts aren’t small:
For Single Individuals
- 2026: Up to $950 (compared to the old $533)
- 2027-2031: Up to $700 per year (compared to the old $533)
That’s an extra $417 this year alone, and an extra $167 every year after that.
For a Family of Four
- 2026: Up to $1,890 (compared to the old $1,100)
- 2027-2031: Up to $1,400 per year (compared to the old $1,100)
These aren’t pie-in-the-sky numbers. The benefit gives low- and modest-income Canadians eligible for the GST rebate a boost that raises what a family of four receives annually to $1,890 and increases what an individual gets to $950 in the first year.
The payments come quarterly—meaning you get money deposited into your account four times a year, not just once.
Who Qualifies? (And Yes, Most Newcomers Do)
This is where the program really shines for people new to Canada. You’re eligible if you meet these criteria:
Age and Residency
You must be:
- 19 years or older (or living with a spouse/common-law partner or child)
- A resident of Canada for tax purposes
That second point is crucial. Being a “resident for tax purposes” doesn’t mean you need to be a citizen or even a permanent resident. It includes:
- International students studying in Canada
- Temporary foreign workers
- Permanent residents
- Protected persons and refugees
Basically, if you’re living in Canada and filing Canadian taxes, you likely count as a resident for tax purposes.
Income Threshold
For 2024 (the most recent year with finalized thresholds), single individuals without children needed to have a net income below $56,181 CAD to qualify for the full benefit.
The threshold changes based on:
- Your marital status
- Number of children
- Overall family composition
Higher-income families can still receive partial benefits—it phases out gradually, not with a hard cutoff.
Why This Matters More for Newcomers
Here’s something most articles won’t tell you: This measure is expected to benefit a larger proportion of newcomers than native-born Canadians, and there’s a simple reason why.
International students, newly arrived temporary foreign workers, and recent permanent residents typically earn less than the national average while they’re getting established. You’re often working entry-level jobs, building Canadian work experience, or studying while working part-time.
That means you’re more likely to fall under the income threshold—and therefore more likely to qualify for the maximum benefit.
Plus, let’s be honest: groceries take up a bigger chunk of your budget when you’re just starting out. The prime minister said his government is using the GST rebate designed for Canadians with low and modest incomes because groceries and other essentials make up a larger share of their family budgets.
How to Get the Money: The Simple Route
If you filed your 2025 tax return, you don’t need to do anything. Seriously.
The Canada Revenue Agency (CRA) automatically calculates your eligibility when you file your taxes. If you qualify, the payments start showing up in July 2026.
Payment Schedule:
- Payments arrive quarterly (every three months)
- First payment: July 2026
- Subsequent payments: October, January, April
The money gets deposited directly into the same bank account where you receive other government payments or tax refunds.
For Recent Arrivals: The RC151 Form
Here’s where it gets slightly more complicated—but still manageable—if you arrived in Canada after the most recent tax filing season.
You’ll need to submit Form RC151 (GST/HST Credit Application for Individuals Who Become Residents of Canada) for the year you became a resident for tax purposes.
What You’ll Need:
- Your Social Insurance Number (SIN)
- Information about your spouse or common-law partner (if applicable)
- Details about your children (if applicable)
- Your date of entry to Canada
- Proof of residency status
You can download the form from the CRA website or request it by calling 1-800-959-8281.
Pro tip: Don’t wait. The sooner you submit this form, the sooner you can start receiving benefits. Even if you just arrived in Canada last month, you can apply for benefits going back to the month you became a resident.
Common Questions I Get From Newcomers
“I’m an international student. Do I really qualify?”
Yes, if you’re 19 or older and you file Canadian taxes. International students are considered residents for tax purposes if Canada is your primary place of residence while studying.
“What if my income changes during the year?”
Your eligibility is based on your net income from the previous tax year. So 2026 payments are based on your 2025 income, 2027 payments on your 2026 income, and so on.
“I just got my work permit. Can I apply?”
Absolutely. As long as you’re considered a resident of Canada for tax purposes, you can apply using Form RC151 even if you haven’t filed a full tax return yet.
“Do I need to reapply every year?”
Nope. Once you’re in the system (either through filing taxes or submitting RC151), the CRA reassesses your eligibility automatically each year when you file your tax return.
Why Filing Your Taxes Matters More Than Ever
Look, I get it. Tax season isn’t exactly exciting. But for newcomers, filing your 2025 tax return is literally your ticket to hundreds of dollars in benefits.
Even if you didn’t earn much income—or any income at all—you should still file. Here’s why:
- It’s the only way to qualify for this benefit
- You might be eligible for other credits and benefits too
- You’re building your financial record in Canada
- It’s often easier than you think, especially with free software available
If your income was under $35,000, you can use the CRA’s free tax software. Many community organizations also offer free tax clinics for newcomers.
Beyond the Money: What This Really Means
This benefit is part of a bigger picture. Carney said his government is developing a National Food Security Strategy to strengthen food production and improve access to affordable, healthy food.
The strategy includes:
- Unit price labeling (so you can actually compare products)
- Stronger competition enforcement in grocery markets
- Specific measures for food insecurity in Northern Canada
- $20 million for food banks and local food infrastructure
These are long-term fixes, but the Groceries and Essentials Benefit is designed to help right now, while those larger changes take effect.
The Bottom Line
If you’re a newcomer to Canada earning under $56,181 as a single person (or the equivalent for your family size), you could be looking at:
- An extra $417 this year
- An extra $167 every year for the next five years
- Quarterly deposits directly to your bank account
- Zero application hassle if you file your taxes
That’s $1,085 over five years—money that can actually make a difference when you’re buying groceries, paying rent, or just trying to get established in a new country.
The first payments go out in July 2026. If you haven’t filed your 2025 taxes yet, now’s the time. And if you’re a recent arrival who missed the filing deadline, grab Form RC151 and get it submitted.
This is one of those rare government programs that’s actually designed to be accessible. Don’t let it pass you by.
