Canadians to receive boosted benefit payments in August as indexation reaches 2 percent

Starting in August, eligible Canadians will receive boosted government benefit payments as the Canada Revenue Agency implements its annual indexation adjustment for inflation.

The 2026 indexation increase is 2 percent — lower than last year's 2.7 percent hike. The adjustment is implemented annually each July, marking the start of the new benefit year.

For Ontario residents, the Ontario Trillium Benefit — a tax-free payment combining the Ontario Energy and Property Tax Credit, Northern Ontario Energy Credit, and Ontario Sales Tax Credit — will see significant increases on August 10. The Ontario Energy and Property Tax Credit rises from $1,283 to $1,307 for those aged 18–64; those 65 and older see their maximum increase from $1,461 to $1,488. The Ontario Sales Tax Credit climbs from $371 to $378, with spouse and dependent child credits available.

The Canada Disability Benefit, which supports people with disabilities aged 18–64, increases starting August 20. The maximum monthly payment rises to $204.20, up from $200 in 2025. Eligibility began in June 2025; applicants can receive back payments for up to 24 months from approval.

The Canada Child Benefit — a tax-free monthly payment to eligible families with children under 18 — also increases August 20. The base benefit for children under six rises to $8,157, up $160 from last year. For children aged six to 17, the base benefit reaches $6,883, a $135 increase.

These adjustments aim to help Canadian families cope with rising living costs. Eligible households should monitor their bank accounts for incoming deposits throughout August.