The Canadian government has announced a new financial benefit that can put hundreds of extra dollars into the pockets of newcomers living in Canada. This update is especially important for international students, temporary workers, and new permanent residents who are still settling in and managing everyday expenses.
The benefit is called the Canada Groceries and Essentials Benefit, and it replaces the older GST (Goods and Services Tax) Credit. The goal is simple: help people with low or modest income afford daily necessities like food, toiletries, and household items.
What Is the Canada Groceries and Essentials Benefit?
The Canada Groceries and Essentials Benefit is a refundable tax credit, which means you can receive this money even if you do not owe any tax. It is paid directly by the government and is designed to help people cope with rising living costs.
Under the new plan, the government is increasing the amount people can receive in two ways:
• A one-time 50% increase for this year
• A 25% increase every year for the next five years, starting July 2026
This means eligible newcomers can receive significantly more money than before, without needing to apply separately each year.
How Much Money Can You Receive?
Here is how the new benefit compares to the old one:
| Household Type | Maximum Payment in 2026 | Maximum Payment in Following Years |
|---|---|---|
| Single person | $950 (up from $533) | $700 per year |
| Family of four | $1,890 | $1,400 per year |
This is extra support on top of other benefits, not a loan, and it does not need to be paid back.
Who Is Eligible for This Benefit?
Most newcomers living in Canada can qualify, as long as they meet a few basic conditions.
You may be eligible if:
• You are 19 years or older
• You are a resident of Canada for tax purposes
• Your income is below the government’s income limit
For example, in 2024, the income limit for a single person with no children was $56,181. This limit increases if you are married or have children.
Because newcomers often earn less in their first few years, the government expects that new immigrants will benefit more than Canadian-born residents.
Do Newcomers Need to File Taxes to Get This Benefit?
Yes. Filing a tax return is mandatory.
To receive payments starting July 2026, you must have filed a 2025 tax return, even if:
• You had little or no income
• You were a student
• You worked only part of the year
If you already filed your 2025 taxes, payments will automatically start in July 2026 and will be paid quarterly.
What If You Are a Newcomer and Haven’t Filed Taxes Yet?
If you arrived in Canada after the most recent tax filing season, you can still receive the benefit.
You must submit Form RC151, which tells the government:
• When you became a tax resident of Canada
• Your family situation
Once approved, you can start receiving the benefit without waiting another year.
Why Did the Government Introduce This Benefit?
The government recognizes that lower-income individuals spend more of their money on basic needs, such as groceries and household items. Sales taxes affect them more than higher-income earners.
This benefit is meant to:
• Reduce financial pressure on newcomers
• Help cover everyday living costs
• Support people during their early years in Canada
Is this benefit only for permanent residents?
No. International students, temporary foreign workers, and new permanent residents can all qualify, as long as they meet the income and residency rules.
Do I need a job to receive this benefit?
No. You can still receive it even if you are unemployed or earning very little, as long as you file taxes.
Will receiving this benefit affect my PR or visa application?
No. This is a government tax credit, not social assistance. It does not negatively impact immigration applications.
How will the money be paid?
The benefit is paid quarterly, directly to your bank account or by cheque.
Do I need to apply every year?
No. Once you file your taxes, payments are automatic as long as you remain eligible.
Final Takeaway for Newcomers
If you are new to Canada and managing high living costs, this benefit can provide real financial relief. The most important step is simple: file your tax return on time, even if you earned little or nothing.
At Ask Kubeir, we strongly encourage newcomers to stay informed about benefits like this, because many people miss out simply due to lack of awareness.
If you want help understanding your tax residency or benefit eligibility, reach out early and stay prepared.
