Canada’s 2026 federal budget proposes an additional payment for low- and modest-income households through the Canada Groceries and Essentials Benefit, offering up to C$679 in extra support for eligible families with two children.
The measure, introduced in the November budget, would provide a one-time 50% supplement to the existing benefit for the 2026-27 payment year.
- Canada’s 2026 federal budget proposes a one-time 50% supplement to the Canada Groceries and Essentials Benefit, with payments expected in early 2027.
- Eligible single adults could receive up to C$339 extra, while couples with two children could receive up to C$679, bringing their total annual support to C$1,290 and C$2,570 respectively.
- The proposed C$4.1 bn measure would support more than 12 mn Canadians, although income eligibility limits leave some families struggling with rising costs outside the programme.
Under the proposal, a single adult without children could receive up to C$339, while a couple with two children could qualify for a maximum additional payment of C$679.
The supplement is expected to be distributed in early 2027, although the government has not announced a specific payment date. The proposal requires parliamentary approval before the additional funds can be issued.
Ottawa estimates the measure will cost approximately C$4.1 bn and provide further financial assistance to more than 12 mn Canadians already covered by the benefit.
How much will Canadians receive from the grocery benefit?
The additional payment would build on two previous increases to federal grocery assistance introduced during 2026.
In June, eligible households received a one-time payment equivalent to 50% of the previous GST/HST credit.
The following month, the GST/HST credit was replaced by the Canada Groceries and Essentials Benefit, with payment amounts increased by 25% for five years.
The new budget proposes another one-time increase for the 2026-27 benefit year.
If approved, total assistance across the benefit year, including earlier increases, would reach:
- Single adult without children: Up to C$1,290, including the proposed C$339 supplement.
- Couple with two children: Up to C$2,570, including the proposed C$679 supplement.
These figures represent maximum amounts. Actual payments depend on household income, family circumstances and eligibility.
The government estimates that the latest supplement could lift approximately 120,000 additional people out of poverty in 2027.
Who qualifies for the Canada Groceries and Essentials Benefit?
Eligibility for the proposed supplement would be linked to the existing Canada Groceries and Essentials Benefit, which replaced the GST/HST credit in July 2026.
The programme provides tax-free quarterly payments to eligible residents with low or modest incomes.
The Canada Revenue Agency (CRA) determines eligibility using information from income tax returns, including adjusted family net income, marital status and the number of eligible children.
For the July 2026 to June 2027 payment period, calculations are based on income reported for the 2025 tax year. For a couple with two children, the relevant income threshold is C$73,592.
Households above the applicable threshold may not qualify for payments, even if they face substantial increases in living expenses.
The CRA generally assesses eligibility automatically after processing a taxpayer’s return. The budget has not specified whether recipients will need to take additional steps to receive the proposed supplement. Further administrative details are expected if the measure becomes law.
Federal gas tax relief to end in April 2027
The budget also confirms the gradual reinstatement of federal fuel excise taxes following a temporary suspension introduced on April 20, 2026. The measure reduced gasoline costs by approximately 10 cents per litre, providing relief to drivers facing higher fuel prices.
For a household filling a 70-litre vehicle tank once a week, the suspension represented potential annual savings of approximately C$364.
Under the government’s schedule, fuel excise taxes will return to 50% of their previous levels before being fully restored on April 1, 2027.
The change means some households could face higher transportation costs even as the government introduces additional grocery assistance.
Budget includes further household affordability measures
Beyond the grocery supplement, Canada’s 2026 budget proposes additional measures intended to support workers, renters and households facing higher living costs.
The government plans to introduce the Build Canada Workers Benefit, increasing the maximum refundable benefit to C$1,859 for single individuals and C$3,143 for families.
The proposed changes would also lower the minimum annual earnings requirement from C$3,000 to C$500, potentially extending eligibility to approximately 180,000 additional workers.
Other measures include continued support for lower-income renters through federal housing programmes and investments in energy efficiency.
The budget also provides for recreational infrastructure funding, including C$1.5 bn over nine years to support the construction, expansion and renovation of community facilities and ice rinks.
Canadians under 25 would also benefit from permanently free admission to national museums.
However, the grocery benefit remains one of the budget’s principal measures aimed at providing direct financial assistance.
For eligible recipients, the proposed supplement would offer additional support in early 2027. For households above the income thresholds, relief will depend largely on broader changes in food prices, fuel costs and other living expenses.
