Canada Groceries and Essentials Benefit
Newcomers May Receive Hundreds of Dollars Through Canada’s Updated Benefit Program
The Canadian federal government has announced a major expansion of financial support aimed at helping low- and modest-income residents manage rising everyday costs. Under newly revealed measures, eligible newcomers to Canada could receive several hundred dollars more each year through a revamped refundable tax credit beginning in 2026.
The updated program, known as the Canada Groceries and Essentials Benefit, replaces and significantly enhances the former GST tax credit. The changes are designed to provide stronger and more predictable financial relief, particularly for households most affected by inflation and higher consumption costs.
What Is the Canada Groceries and Essentials Benefit?
Higher Payments Starting in 2026
- A one-time 50% increase to the benefit for the current year
- A 25% permanent increase to the existing credit, applied annually for five years starting in July 2026
As a result, an eligible single individual could receive up to $950 in total payments this year, compared to about $533 previously. In the following years, annual payments could reach approximately $700. For families, the increase is even more significant. A household of four may qualify for up to $1,890 this year, followed by around $1,400 per year over the next five years, depending on income and family composition.
Who Is Eligible for the Benefit?
- Are 19 years of age or older
- Are residents of Canada for tax purposes
- Fall below the annual net income threshold, which is adjusted based on family size and marital status
For example, for a single individual without children, the income limit is set at $56,181 (based on 2024 income levels). Thresholds increase for couples and families with children. Because many newcomers initially earn lower incomes, the government expects a higher proportion of new immigrants, international students, and temporary foreign workers to qualify compared to Canadian-born residents.
Tax Filing Requirements and Payment Timeline
| Province | Canadian city |
|---|---|
| Ontario | Ottawa |
| London | |
| Mississauga | |
| Toronto | |
| Brampton | |
| Hamilton | |
| British Columbia | Nanaimo |
| Victoria | |
| Vancouver | |
| Kelowna | |
| Alberta | Calgary |
| Edmonton | |
| Quebec | Quebec City |
| Montreal | |
| Saskatchewan | Regina |
| Manitoba | Winnipeg |
| Nova Scotia | Halifax |
Newcomers who arrived in Canada after the most recent tax season are not excluded. They can still access the benefit by submitting Form RC151 for the year they became Canadian tax residents.
Humanitarian Work Permits Under Review
Ukrainian Nationals
Canada’s special employment measures for individuals who arrived under emergency travel authorization for Ukraine are nearing their end. The policy currently allows eligible Ukrainians and their family members to obtain open work permits and study permits. Unless renewed, it will expire on March 31, 2026. If the policy lapses, extensions will no longer be available, potentially forcing thousands of permit holders to transition to other immigration categories or leave the workforce.
Iranian Nationals
A similar situation applies to Iranian temporary residents in Canada. A special policy permitting Iranians who arrived before February 28, 2025, to access work and study permits is scheduled to conclude on February 28, 2026. As of now, the federal government has not announced whether this relief measure will continue beyond that date.
Study Permit Numbers Tightened Nationwide
Managing student intake became another key priority in 2025. The federal government significantly reduced the number of study permits it planned to issue, citing pressure on housing, healthcare, and public infrastructure.
The cap introduced for the year limited the number of applications processed and resulted in fewer permits being approved overall. Mid-year data showed that new student arrivals were well below annual targets, confirming the immediate impact of these restrictions. Further reinforcing this trend, authorities later announced even lower issuance targets for 2026, indicating that tighter controls on international student numbers will continue in the near future.
| National rank | Canadian city |
|---|---|
| 1 | Ottawa, Ontario |
| 2 | Nanaimo, British Columbia |
| 3 | Victoria, British Columbia |
| 4 | Vancouver, British Columbia |
| 5 | Quebec City, Quebec |
| 6 | Calgary, Alberta |
| 7 | Halifax, Nova Scotia |
| 8 | Edmonton, Alberta |
| 9 | Kelowna, British Columbia |
| 10 | Montreal, Quebec |
| 11 | London, Ontario |
| 12 | Mississauga, Ontario |
| 13 | Toronto, Ontario |
| 14 | Brampton, Ontario |
| 15 | Regina, Saskatchewan |
| 16 | Winnipeg, Manitoba |
| 17 | Hamilton, Ontario |
Why the Benefit Matters for Newcomers
Sales taxes tend to affect lower-income households more heavily, as a larger share of their earnings goes toward essential purchases. Newcomers, especially those in their first few years in Canada, often face higher settlement costs while earning entry-level incomes. By increasing this refundable credit, the government aims to reduce financial strain and improve economic stability for new residents as they establish themselves in the country.
Looking Ahead
As cost-of-living concerns continue nationwide, this enhanced benefit is likely to play a key role in helping new and low-income residents manage essential expenses more effectively.
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