Newcomers can now get extra money from Canada this year, i.e., eligible newcomers in Canada may receive hundreds of dollars more this year under a new government benefit. Each eligible person could get up to an extra $417 this year and up to $167 more each year over the next five years.

The money comes through a refundable tax credit called the Canada Groceries and Essentials Benefit. This new benefit replaces and updates the former Goods and Services Tax (GST) credit.

The increase includes a 25% boost to the regular benefit for five years starting in July 2026, along with a one-time 50% increase for this year.

According to the government’s announcement on January 26, 2026, a single eligible person can receive up to $950 this year, compared to $533 before. They can also receive up to $700 per year for the next four years. A family of four can receive up to $1,890 this year and up to $1,400 per year for the next five years.

This benefit is available to all people aged 19 and over who live in Canada for tax purposes. This includes most newcomers. Applicants must also fall below the annual net income limit, which is set at $56,181 for a single person with no children for the 2024 tax year. Income limits change based on family size and marital status.

To receive payments starting in July 2026, a person must have filed a tax return for the year 2025.

For those who filed their 2025 tax returns, the government plans to start issuing quarterly payments in July 2026.

Moreover, newcomers who arrived in Canada after the most recent tax filing season can apply by submitting Form RC151 for the year they became a resident for tax purposes.

This benefit is expected to help a larger number of newcomers than Canadian-born residents. This is because newcomers, such as international students, newly arrived temporary workers, and permanent residents, are more likely to have incomes below the set threshold.

The Canada Groceries and Essentials Benefit replaces the GST credit and helps people with low and modest incomes manage everyday costs.

People with lower incomes are more affected by sales taxes because they spend a larger share of their income on daily living needs.

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