CGEB (GST/HST Credit) Guide: Eligibility, Amounts & Payments

Key Summary: The GST/HST credit is a tax-free quarterly payment from the CRA that helps low and modest-income Canadians offset the GST/HST they pay on everyday purchases. Starting July 2026, it is being replaced by the Canada Groceries and Essentials Benefit (CGEB) with approximately 25% higher payments ^[1][7]. You do not need to apply separately. Simply filing your annual tax return is enough. A single individual can receive up to $533/year (2025-2026) or $679/year under the new CGEB (2026-2027) ^[3][7].

What is the GST/HST Credit?

The GST/HST credit is a tax-free quarterly payment from the Canada Revenue Agency (CRA) designed to help offset the Goods and Services Tax (GST) or Harmonized Sales Tax (HST) that Canadians pay on goods and services ^[1].

Key characteristics:

• Non-taxable - does not count as income on your tax return
• Paid quarterly - 4 times per year (January, April, July, October)
• Automatic - no separate application needed if you file a tax return
• Income-tested - based on your previous year's Adjusted Family Net Income (AFNI)
• May include provincial credits - many provinces add their own credits to the same payment

The credit was introduced in 1991 alongside the GST to ensure that low-income Canadians would not be disproportionately burdened by the consumption tax. Its legislative authority is found in the Income Tax Act, section 122.5 ^[8].

Important: Do not confuse the GST/HST credit with the GST/HST rebate (for businesses), the GST/HST new housing rebate (for homebuyers), or the GST/HST return (business filing). These are completely different programs.

Big Change: Canada Groceries and Essentials Benefit (CGEB)

Starting July 2026, the GST/HST credit is being replaced by the Canada Groceries and Essentials Benefit (CGEB) ^[7].

Here is what you need to know about the transition:

Transition timeline:

1. January 2026: Regular GST/HST credit payment (old name)
2. April 2026: Last regular GST/HST credit payment under old program
3. June 5, 2026: One-time GST/HST credit top-up payment (50% of annual amount) ^[6]
4. July 2026: First CGEB payment (with 25% increase) ^[7]

You do not need to do anything. If you were receiving the GST/HST credit, you will automatically receive the CGEB. No new application is required ^[7].

Who is Eligible?

You are eligible for the GST/HST credit (and the CGEB starting July 2026) if you meet all of the following criteria ^[2]:

1. Canadian resident for tax purposes during both:

   • The month before CRA makes a payment
   • The start of the month when a payment is made

2. At least 19 years old, OR meet one of these exceptions:

   • Have (or had) a spouse or common-law partner
   • Are (or were) a parent and live (or lived) with your child

3. File an annual tax return (even with zero income)

Who receives the payment in a couple?

The credit is paid to one spouse or common-law partner on behalf of both. The amount is the same regardless of which partner receives it ^[2].

Turning 19 during the year

File your tax return for the year you turned 18. Your first GST/HST credit payment comes on the next quarterly payment date after your 19th birthday ^[2].

Example: Turn 19 on March 15 => first payment on April 5.

Shared custody of children

Parents in shared custody may each receive half of the GST/HST credit for that child. This follows the same shared custody determination used for the Canada Child Benefit (CCB) ^[2].

How Much Can You Get?

2025-2026 Payment Period (July 2025 to June 2026)

Based on your 2024 tax return ^[3]:

Maximum annual amounts:

• Single, no children: $533/year
• Couple, no children: $698/year
• Couple with 2 children: $1,066/year

2026-2027 Payment Period: CGEB (July 2026 to June 2027)

Based on your 2025 tax return, now under the CGEB ^[7]:

Maximum annual amounts under CGEB:

• Single, no children: $679/year (+$146 vs. previous year)
• Couple, no children: $890/year (+$192)
• Couple with 2 children: $1,358/year (+$292)

This represents an approximate 25% increase over the 2025-2026 amounts. The increased payment levels are set for 5 years (2026-2031) ^[7].

One-Time GST/HST Credit Top-Up (June 5, 2026)

As part of the transition to CGEB, a one-time top-up equal to 50% of your annual GST/HST credit amount for the July 2025-June 2026 period will be paid on June 5, 2026 ^[6].

Top-up amounts for single individuals/single parents:

Top-up amounts for married/common-law couples:

Eligibility: You must have been entitled to the January 2026 GST/HST credit payment (i.e., you filed your 2024 tax return) ^[6].

Lump sum vs. quarterly

If your total annual amount works out to less than $50 per quarter (under $200/year), you receive the entire amount as a single lump sum payment in July rather than quarterly installments ^[3].

💡 Want to calculate your exact benefit amount? Use our Government Benefits Calculator to estimate your CGEB, CCB, and other benefits based on your income and family situation.

Payment Dates

Payments are issued 4 times per year, normally on the 5th of the month ^[5]:

Special date in 2026: June 5, 2026 - one-time top-up payment ^[6].

Dates shift slightly when the 5th falls on a weekend or holiday.

Direct deposit vs. cheque: CRA recommends signing up for direct deposit through CRA My Account for faster, more secure payments. Paper cheques may take additional business days ^[5].

Payment period cycle

Each GST/HST credit period runs from July to June ^[5]:

• January and April payments: based on your tax return from 2 years prior
• July and October payments: based on your most recent tax return
• Example: July 2025 payment is based on your 2024 tax return

Income Thresholds: When Does the Credit Phase Out?

The GST/HST credit uses an income-based phase-out (sometimes called a "clawback"). Understanding this is key to knowing exactly how much you will receive ^[3][8].

What is Adjusted Family Net Income (AFNI)?

AFNI is the income figure that determines your credit amount. It is calculated as ^[3]:

AFNI = Combined net income of both spouses (line 23600) minus UCCB received (line 11700) minus RDSP income received (line 12500) plus UCCB repaid (line 21300) plus RDSP repaid (line 23200)

This is the same AFNI used for the Canada Child Benefit (CCB). Any strategy that lowers your AFNI affects both benefits simultaneously.

How the phase-out works

1. You receive the full credit up to the phase-out threshold (approximately $46,000 for the 2024 base year)
2. Above the threshold, the credit is reduced by 5% of every dollar of AFNI over the threshold
3. Eventually, the credit reaches $0 at the maximum income threshold ^[3][8]

Maximum income thresholds (credit reaches $0)

Based on 2024 tax return (for July 2025-June 2026 payments) ^[2]:

Single individuals and single parent families:

Married/common-law couples:

Calculation examples

Example 1: Single, no children, AFNI = $50,000 (2024 base year)

• Maximum credit: $533
• Phase-out threshold: ~$46,000
• Income over threshold: $50,000 - $46,000 = $4,000
• Reduction: $4,000 x 5% = $200
• GST/HST credit received: $333/year ($83.25/quarter)

Example 2: Couple, 2 children, AFNI = $55,000 (2024 base year)

• Maximum credit: $698 + (2 x $184) = $1,066
• Phase-out threshold: ~$46,000
• Income over threshold: $55,000 - $46,000 = $9,000
• Reduction: $9,000 x 5% = $450
• GST/HST credit received: $616/year ($154/quarter)

How to Apply (or Not Apply)

For most Canadians: just file your tax return

There is no separate application. The CRA automatically assesses your eligibility when you file your annual income tax return ^[4]. This is why it is critical to file every year, even if you have zero income.

Filing with $0 income means your AFNI is $0, which means you qualify for the maximum credit amount ^[4].

For newcomers: Form RC151

If you are a new resident of Canada and haven't filed your first tax return yet, you can apply early using Form RC151 ("GST/HST Credit and Canada Carbon Rebate Application for Individuals Who Become Residents of Canada") ^[4]. You will need your Social Insurance Number (SIN) to complete the form.

• Available online through the CRA website
• Only one application per household is needed
• You can apply as soon as you become a resident of Canada

Once you file your first Canadian tax return, CRA switches to automatic assessment.

For newcomers with children

In addition to RC151, you should also file Form RC66 (Canada Child Benefit Application) to receive the CCB ^[4]. Include:

• All children under 19
• Proof of birth for all children
• Translations if documents are not in English or French (with copy of original)

GST/HST Credit for Newcomers

This section is especially important if you are new to Canada ^[4].

Why newcomers should file immediately

A very common mistake among newcomers is not filing a tax return because they think "I didn't earn anything in Canada." This is wrong. Filing a return with $0 income triggers eligibility for ^[4]:

• GST/HST credit (soon CGEB) - up to $533/year per person
• Canada Child Benefit (CCB) - up to $7,787 per child under 6
• Provincial benefits (Ontario Trillium, etc.)

If both spouses file $0-income returns, a couple with 2 children could receive over $1,000/year in GST/HST credit alone, plus thousands in CCB.

Timeline for newcomers

1. Arrive in Canada and establish residency
2. Apply for a Social Insurance Number (SIN)
3. Submit Form RC151 online OR wait to file your first tax return
4. CRA assesses your eligibility
5. First payment on the next quarterly date after assessment ^[4]

Retroactive payments

If you established residency earlier in the year but did not file or apply immediately, you can receive retroactive payments. Once your return is assessed, any missed payments will be included in your next scheduled payment ^[4].

GST/HST Credit for Students

International students

International students are eligible if they file a Canadian tax return and meet residency requirements ^[4]. Studying full-time in Canada typically qualifies as having significant residential ties. Low or zero income means you likely qualify for the full credit amount.

Domestic students

File your tax return even with low or part-time income ^[4]. File at age 18 to receive your first payment after turning 19. Why every student should file:

1. Receive GST/HST credit (up to $533/year for 2025-2026)
2. Build RRSP contribution room (18% of earned income)
3. Accumulate tuition tax credits for future use
4. Establish a filing history with the CRA
5. Access provincial benefits

RRSP and FHSA Strategy to Maximize Your Credit

Since the GST/HST credit is based on AFNI, any strategy that lowers your net income can increase your credit ^[3][8]. Two powerful tools for this are the RRSP and the FHSA.

How RRSP contributions reduce your credit clawback

RRSP contributions are deducted from your net income (line 23600), which directly reduces your AFNI. A lower AFNI means less phase-out reduction on your GST/HST credit ^[8].

Example: Single individual, gross income $50,000

That $5,000 RRSP contribution generates:

• Tax refund from marginal rate: ~$1,500 (at 30% combined rate)
• Additional GST/HST credit: ~$200/year
• Total benefit beyond investment growth: ~$1,700

The triple benefit: RRSP + GST/HST Credit + CCB

For families near the phase-out zone, one RRSP contribution creates a "triple benefit" ^[8]:

1. Tax deduction (immediate refund at your marginal rate)
2. Higher GST/HST credit (less 5% clawback)
3. Higher Canada Child Benefit (CCB uses the same AFNI)

Comprehensive example: Couple, 2 children (ages 5 and 8), income $75,000

That is a 40% return on the $15,000 RRSP contribution, before counting the investment growth inside the RRSP.

FHSA contributions: same effect

FHSA contributions also reduce your net income (line 23600). With a maximum of $8,000/year, an FHSA contribution can reduce clawback by up to $400 at the 5% phase-out rate ^[8].

If you are a first-time home buyer, the FHSA is one of the most powerful accounts in Canada. Read our FHSA Complete Guide for details.

All AFNI-Based Benefits at a Glance

The following government benefits all use the same AFNI for calculation ^[3]:

1. GST/HST Credit / CGEB (federal) - 5% phase-out rate
2. Canada Child Benefit (CCB) - varies by number of children
3. Provincial/territorial benefits delivered alongside the GST/HST credit:
   • Ontario Trillium Benefit (Ontario Sales Tax Credit + Energy/Property Tax Credit)
   • Alberta Child and Family Benefit
   • Saskatchewan Low-Income Tax Credit
   • New Brunswick Harmonized Sales Tax Credit
   • Nova Scotia Affordable Living Tax Credit
   • Newfoundland and Labrador Income Supplement
   • PEI Sales Tax Credit
   • Manitoba Personal Tax Credit

Because all these benefits use the same AFNI, a single RRSP or FHSA contribution lowers your AFNI and increases every AFNI-based benefit simultaneously.

Provincial Credits Delivered with the GST/HST Credit

Many provinces deliver their own credits alongside the GST/HST credit as a combined quarterly payment ^[1].

Ontario Trillium Benefit (OTB)

Combines three credits for Ontario residents:

1. Ontario Sales Tax Credit - for residents 19+
2. Ontario Energy and Property Tax Credit - up to $1,307 (age 18-64) or $1,488 (65+); must have paid rent or property tax
3. Northern Ontario Energy Credit - up to $189 (single) or $290 (families) for Northern Ontario residents

Alberta Child and Family Benefit

For Alberta families with children under 18. Income-tested and paid quarterly alongside the GST/HST credit.

Other provinces

Saskatchewan, New Brunswick, Nova Scotia, Newfoundland and Labrador, PEI, and Manitoba all offer their own income-tested credits that may be combined with the GST/HST credit payment.

GST/HST Rates by Province

Understanding the sales tax you are being compensated for:

Provinces with higher total sales tax (like the Atlantic provinces at 15% HST) often have additional provincial credits to help offset the provincial portion ^[1].

Historical One-Time Enhancements

The government has occasionally provided one-time boosts to the GST/HST credit ^[1]:

• April 2020 (COVID-19): Doubled the maximum payment amounts for the 2019-2020 benefit year
• November 2022: One-time payment that doubled the credit for 6 months
• June 2026: One-time 50% top-up bridging the gap before CGEB ^[6]

Starting July 2026, the CGEB provides a permanent 25% increase for 5 years (2026-2031) ^[7].

How to Check Your Payment Status

You can check your GST/HST credit status through:

1. CRA My Account (online) - view payment amounts, dates, and eligibility
2. MyCRA mobile app - same information on your phone
3. Calling the CRA - automated phone line provides payment information
4. Notice of determination - mailed after your tax return is assessed

If your payment amount seems wrong, verify that your tax return was filed correctly and that your marital status and number of dependants are accurate in CRA's records ^[1].

Key Takeaways

1. File your tax return every year, even with $0 income. This is the single most important step to receiving the GST/HST credit ^[4].

2. The name is changing - from GST/HST Credit to Canada Groceries and Essentials Benefit (CGEB) in July 2026, with ~25% higher payments ^[7].

3. No separate application needed for most people. File your return and CRA handles the rest ^[4].

4. Newcomers: File immediately or submit Form RC151. Do not wait ^[4].

5. Students: File your tax return to start receiving up to $533/year ^[4].

6. Optimize with RRSP/FHSA: If your income is near the phase-out zone, contributions to your RRSP or FHSA can increase your credit, your CCB, and provide a tax deduction simultaneously ^[8].

7. Save in a TFSA: Unlike RRSP withdrawals, TFSA withdrawals do not increase your AFNI, making it the ideal account for withdrawals in years when you want to keep your GST/HST credit intact.

8. Sign up for direct deposit through CRA My Account for faster payments ^[5].