Canadians get 2% boost to benefits and credits starting in July
Government benefit payments rise by 2% in July as the Canada Revenue Agency adjusts for inflation, with new grocery benefit debuting July 3.
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Canadian benefit and credit payments will increase by 2 per cent starting in July as the Canada Revenue Agency adjusts for inflation—a lower hike than the 2.7 per cent increase in 2025.
Since 2018, the CRA has used a process called indexation to adjust benefit payments to keep pace with rising costs of living. The July adjustments affect multiple programs that support families, people living with disabilities, and low-income workers.
The Canada Groceries and Essentials Benefit launches July 3, replacing the GST/HST credit. The government will increase its value by 25 per cent over the next five years, delivering $8.6 billion in additional support over the 2026-2027 to 2030-2031 period to 500,000 new individuals and families. Single individuals without children will receive up to an additional $402, couples will get $527, and couples with two children will receive $805. The benefit will be paid quarterly alongside other existing benefits like the Canada Child Benefit.
The Advanced Canada Workers Benefit, a refundable tax credit for low-income individuals and families, sees its maximum benefit for single individuals rise to $1,665 in 2026—a $32 increase from $1,633 in 2025. Families will see a maximum benefit of $2,869, up $56 from $2,813. The disability supplement increases by $17 to $860.
Ontario residents will also see increases to the Ontario Trillium Benefit, a tax-free payment combining three provincial credits. The Ontario Energy and Property Tax Credit rises from $1,283 to $1,307 for those aged 18-64, and from $1,461 to $1,488 for those 65 and older. The Northern Ontario Energy Credit and Ontario Sales Tax Credit also increase.