The Canada Groceries and Essentials Benefit (CGEB; ) is a fiscal measure administered by the Canada Revenue Agency on behalf of the Government of Canada.
Announced by Prime Minister Mark Carney on January 26, 2026, the benefit replaces the Goods and Services Tax Credit (GSTC) and provides enhanced refunds to lower-income households starting in 2026.
The CGEB is a tax-free quarterly payment provided to individuals and families to refund a portion of the Goods and Services Tax (GST) they pay on their purchases throughout the year. Administered by the Canada Revenue Agency, eligibility to the program is automatically determined upon filling of income taxes.
On January 28, 2026, the minister of finance and national revenue François-Philippe Champagne introduced bill C-19 in the House of Commons to implement the CGEB through amendments to the Income Tax Act. Bill C-19 was passed by the House of Commons on February 4, 2026 and by the Senate on February 12, 2026. It received royal assent later that day.
The refundable federal sales tax credit was introduced by the 1986 federal budget (along with an increase in the rates of the federal sales tax). At the time the yearly credit was $50 per adult and $25 per child. Cost of the new benefit was estimated at $330 millions for fiscal year 1986-87.
Amendments in the Income Tax Act were passed later in 1986 and created section 122.4 which provided the refundable credit. The 1987 federal budget tightened the rules for the calculation of the family income (for instance in the case of unmarried parents).
Amounts for the yearly credit have been increased several times:
The income threshold where the credit is reduced was also raised from $15,000 in 1986 to $16,000 in 1988 and $18,000 in 1990.
As part of the comprehensive tax reform leading up to the introduction of the Goods and Services Tax on January 1, 1991 the federal government announced the replacement of the previous federal sales tax credit with a new and enriched Goods and Services Tax Credit (GSTC). Credit amount would be significantly raised to reach $275 per adult and $100 per child. The income threshold for credit reduction was also significantly raised from $18,000 to $24,800. The government projected in 1989 that 9.3 million families would be eligible for the GSTC in 1991
On December 19, 1989, the minister of Finance announced a reduction in the rate of the GST from 9 to 7% and a reduction of the GSTC yearly amount from $275 to $190 per adult. The amount of the GSTC relative to a child was left unchanged at $100.
The bill legislating the GST and the amendments in the Income Tax Act received royal assent on December 17, 1990, mere days prior to its planned introduction on January 1, 1991. It repealed section 122.4 which provided the former federal sales tax credit and created section 122.5 which provided for the new GSTC.