While the view of many Canadians, especially at tax return filing time, is that our tax system exists solely to take money out of their pockets, the reality is far more nuanced. It is certainly true that Canadian tax laws cast a very wide net, in which very few sources of income escape taxation. The reality is also, however, that a substantial amount of tax revenue received by the federal government is returned to Canadians through tax credit and benefit programs. Amounts paid under those programs are received tax-free and this year, changes have been made to some programs which increase the amount provided to Canadian individuals and families.
The tax credit and benefit program year generally runs from July to the following June, meaning that the upcoming benefit year will begin in July 2026 and end in June 2027. The reason for that timing is that eligibility for (as well as the amount of) most federal and provincial tax credits and benefits is based, at least in part, on individual or family income for the previous year. Consequently, the determination of whether an individual or family is eligible for such benefits during the 2026-27 benefit year is based on income amounts earned and reported on the tax return for 2025. It follows, then, that in order to receive such benefits during the 2026-27 benefit year it is necessary for all individuals, and both parents within a family, to file a return for 2025.
Unfortunately, a substantial number of eligible recipients don’t receive benefits to which they are entitled, simply because they haven’t filed a tax return for the previous year, leaving potentially hundreds or thousands of dollars in tax-free income unclaimed each year. As well, many Canadians who do receive such benefits but who then fail to file a tax return each year can see their benefit payments stop, even though they remain eligible to receive those benefits. Eligibility for federal and provincial credits and benefits begins, therefore, with filing an annual tax return. And, while the 2025 return filing deadline for most individuals of April 30, 2026 has passed, it’s not too late to file a return. While late filing of a return may result in delayed payment of benefits, eligibility for those benefit payments will not be lost.
It should be noted, as well, that while the federal government refers to these benefits under the umbrella term “child and family benefits”, it’s wrong to conclude that benefits are only available to parents and/or married individuals. Of the three benefit programs outlined below which will be in place during the upcoming benefit year, only the Canada Child Benefit/Child Disability Benefit program requires that a taxpayer be a parent, and none of the benefit programs require that a taxpayer be married or in a common-law relationship. As well, each of these tax credits/benefits are what are termed “status” credits/benefits, in which eligibility for and the amount of the credit/benefit is based on the taxpayer’s Canadian residence, income, marital status, and (for the Canada Child Benefit/Child Disability Benefit only) number of children. Unlike other deductions and credits claimable under our tax system, there is no requirement for an individual or family to make any expenditure of funds for any purpose in order to be eligible for the following credit/benefit programs.
GST/HST Credit/Groceries and Essentials Benefit
The GST/HST credit is a non-taxable amount paid four times a year (on the fifth of July, October, January, and April) to lower- and middle-income individuals and families, to help offset the cost of the goods and services tax/harmonized sales tax (GST/HST) that they pay. Generally, the credit is available to Canadian residents who meet all of the following criteria:
- aged 19 years of age or older; or
- under age 19 and
- have or had a spouse or common law partner; or
- are or were a parent and live (or lived) with their child.
A number of changes to the GST/HST tax credit were announced in the 2026 federal budget; those changes will mean increased payments under the program for eligible Canadians.
The first change is a renaming of the GST/HST tax credit. As of July 1, 2026, that program will be renamed the “Canada Groceries and Essentials Benefit” (CGEB). The change is one of name only, as the tax-free status, eligibility criteria, and payment schedule for the CGEB remain the same as for the former GST/HST tax credit.
The second change involves an increase in the amount of benefit which will be paid starting with the 2026-27 year. Benefit payments for that year, and until 2031, will be increased by 25%. Following that change, maximum benefits payable under the GEGB program for 2026-27 will be as follows:
- $679 for single individuals;
- $890 for individuals who are married or have a common-law partner; and
- $234 for each child under the age of 19.
Finally, the federal government will be providing a one-time “top-up” payment of the current GST/HST benefit. That payment will be made in June 2026, starting around June 5. The payment will be made to all Canadians who received a GST/HST benefit payment in January 2026, and will be equal to 50% of the total GST/HST credit payments received by such recipients during the 2025-26 benefit year. The amount of the top-up payment will range from $267 (for single individuals without children) to $717 (for single parent or two parent families with four children). Information on the one-time top-up payment is available on the federal government website at One-time GST/HST credit top-up payment - Canada.ca.
Detailed information on the new Groceries and Essentials Benefit can be found on the CRA website at Canada Groceries and Essentials Benefit - Canada.ca.
Canada Workers Benefit
The Canada Workers Benefit (CWB) is a refundable tax credit paid to lower income Canadian residents who are aged 19 or older or are married or have a common-law spouse or child with whom they live, and who have “working income” of at least $3,000. For the purposes of the CWB, such working income can be from employment or self-employment.
The amount of CWB which an individual or family can receive depends on marital status and net income. The basic amounts payable for the 2026 benefit year, and the net income levels at which eligibility for that basic benefit is eroded, are as follows.
- $1,665 for single individuals
The single individual benefit is reduced if adjusted net income is more than $27,392.
- $2,869 for families
The family benefit amount is reduced if adjusted family net income is more than $31,251.
In order to apply for the CWB, a recipient must file their tax return electronically and follow the instructions provided for the particular tax return preparation software, or, if filing a paper return, must complete and file a Schedule 6 with that tax return.
More detailed information on the CWB, including the availability of advanced payments of the Benefit, can be found at https://www.canada.ca/en/revenue-agency/services/child-family-benefits/canada-workers-benefit.html.
Canada Child Benefit
The Canada Child Benefit (CCB) is a tax-free monthly payment made to eligible families to help with the cost of raising children under 18 years of age. The CCB is paid to the parent who is primarily responsible for the care and upbringing of the child or children, and the amount varies with the age and number of children.
The CCB is also a means-tested benefit, with the benefit amount being reduced as family net income increases. CCB amounts paid during the 2026-27 benefit year are based on family net income for 2025.
The maximum amounts payable for the benefit year running from July 2026 to June 2027 are as follows.
For each child:
- under 6 years of age: $8,157 per year ($679.75 per month)
- 6 to 17 years of age: $6,883 per year ($573.58 per month)
Where family net income for 2025 is less than $38,237, recipients will receive the maximum amount outlined above for 2026-27, with no reductions.
Individuals and families who may be eligible for the CCB will have their eligibility automatically assessed when they file their tax return for 2025: there is no requirement to file a particular schedule or other application. More information on the CTB is available on the federal government website at https://www.canada.ca/en/revenue-agency/services/child-family-benefits/canada-child-benefit-overview.html.
Child Disability Benefit
Families who have children under the age of 18 for whom the federal disability tax credit can be claimed, and who are eligible to receive the Canada Child Benefit, will also receive the Child Disability Benefit (CDB).
For the 2026-27 benefit year, the CDB is equal to $3,480 for each eligible child, with the benefit amount being reduced where family net income is greater than $82,847. There is no requirement to apply for the CDB, as that benefit will automatically be issued to any family that has an eligible child for whom they are already receiving the Canada Child Benefit.
More information on the CDB is available at Child disability benefit - Canada.ca.
While the number and variety of federal child and family benefits, and the varying eligibility criteria for each, can be confusing, the necessary determinations and calculations are done by the federal government. The only step which need be taken by an individual is the filing of an annual tax return. Taxpayers who wish to find information on the benefits for which they may be eligible (and to obtain an online estimate of the amount of those benefits) can refer to the Canada Revenue Agency website at https://www.canada.ca/en/revenue-agency/services/child-family-benefits.html and Tax credits and benefits for individuals - Canada.ca, where detailed information on each such benefit program can be found.