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Canada's New Grocery Benefit Starts July 3 — How Much Will You Get?

  If you've been receiving the GST/HST credit, something is changing on July 3, 2026 — and it's actually good news. The federal government is replacing the old credit with a new program called the Canada Groceries and Essentials Benefit (CGEB) , and it comes with payments that are 25% larger. More than 12 million Canadians qualify. No application is required. Here's everything you need to know before the first payment lands. What Is the CGEB? The Canada Groceries and Essentials Benefit is the federal government's replacement for the GST/HST credit, which has been around since 1991. Prime Minister Mark Carney announced the new benefit on January 26, 2026, and it received Royal Assent on February 12 under Bill C-19. The legislation commits $11.7 billion in additional support to Canadians over six years — $3.1 billion immediately through the one-time June top-up, and $8.6 billion over five years through higher quarterly payments. The name change is deliberate — it signal...
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Understanding the OAS Clawback: Impact and Costs

 

The Old Age Security (OAS) clawback is a critical aspect of Canada’s retirement system. Let’s delve into the details:

What Is the OAS Clawback?

  • Threshold: Seniors who receive OAS payments may need to pay back a portion if their annual income exceeds a certain amount. This threshold is indexed annually and currently stands at $86,912 for 2023 (estimated to be $90,997 for 2024).

  • 15% Tax: For every taxable dollar earned above this threshold, a 15% clawback tax is applied to the OAS benefit. Essentially, seniors still receive OAS income, but it’s reduced by this withholding tax.

Who Is Affected?

  • High Earners: Previously high-income earners applying for OAS may face immediate clawbacks based on prior tax returns. The timing of pension receipt determines which year’s income is considered.

  • Specific Income Levels:

    • 65-74 Years Old: If your income exceeds $142,609, you won’t receive OAS.
    • 75 and Older: For those over 75, the threshold is $148,179.

Costs and Considerations

  • Annualized Growth: Canada’s economy surged in Q4 2023, but the OAS clawback remains a concern for retirees. Balancing growth and income thresholds is crucial.

  • Minimizing Clawback: Strategies exist to minimize the clawback. For instance, managing investment income and optimizing retirement accounts can help.

Remember, while the OAS clawback affects many, it’s essential to consult a professional for personalized advice. 


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