Newcomers can receive hundreds of dollars from Canadian government this year under revamped benefit
Each eligible newcomer in Canada could receive up to an additional $417 this year, and up to an additional $167 per year over the next five years, under upcoming measures announced by the federal government.
The money comes in the form of a refundable tax credit, dubbed the Canada Groceries and Essentials Benefit, which revamps what was formerly called the Goods and Services (GST) tax credit.
The additional benefits come in the form of a 25% increase to the existing benefit for five years, starting in July of 2026, plus a one-time increase of 50% for this year.
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According to the government's announcement on January 26, 2026, under the new measures a single eligible individual can receive a total benefit payment up to $950 this year—up from $533—and up to $700 per year for the next four years. For a family of four, the maximum total benefit will be $1890 this year, and $1400 per year for the next five years.
This benefit is available to all individuals aged 19 and over who are residents of Canada for tax purposes—which includes most newcomers—who fall beneath the annual net income threshold, set at $56,181 (CAD) for the year 2024 (for a single person without children). Net income eligibility thresholds are dependent on family size and the marital status of the taxpayer.
To receive the benefit starting in July of 2026, an individual will need to have filed tax return for the year 2025.
For those who filed tax returns for the year 2025, the government is expected to begin issuing quarterly payments in July 2026.
Newcomers who have arrived in Canada after the latest tax filing season can register to receive the rebate by sending a completed form RC151 for the year that they became a resident of Canada for tax purposes.
This measure is expected to benefit a larger proportion of newcomers than native-born Canadians, as newcomers such as international students, newly arrived temporary foreign workers, and permanent residents are more likely to fall beneath the income threshold.
As the successor to the GST tax credit, the Canada Groceries and Essentials Benefit is intended to help lower and modest-income taxpayers offset the sales tax they pay toward everyday purchases.
Lower-income taxpayers are disproportionately affected by consumption taxes such as sales taxes, as they spend a larger portion of their income on day-to-day living expenses.
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