Updated on December 12, 2025, 12:32 PM EST (Toronto Time)
Canadian taxpayers will see a 2% increase in Goods and Services Tax (GST) payments in 2026, reflecting inflation adjustments made by the federal government.
Although the increase may seem modest compared to previous years, it will provide valuable support to low- and modest-income individuals and families facing high living costs.
The GST credit is a popular benefit provided by the Canada Revenue Agency, offering tax-free quarterly payments to help offset GST or HST paid on everyday purchases.
Given the current high prices in housing, groceries, utilities, and transportation, the July 2026 indexation will help stabilize household budgets.
This guide outlines how the 2% increase will be implemented, who is eligible, how payment amounts are determined, and the confirmed GST payment dates for 2026.
What Is the GST Payment?
The GST and HST credit is a tax-free quarterly benefit managed by the Canada Revenue Agency, aimed at assisting low- and modest-income Canadians in recovering a portion of the GST or HST they pay on goods and services.
Unlike other refundable tax credits, GST payments are automatically issued four times a year to eligible recipients, with adjustments made annually based on inflation and household changes.
The GST credit benefits a wide range of individuals, including workers, seniors, students, newcomers, and families with children, serving as a crucial support in the CRA benefit system.
Confirmed GST Payment Increase in 2026
Starting in July 2026, GST payments will see a 2% increase, following the official inflation indexation applied to federal benefits.
This adjustment aligns with the federal government’s annual indexation framework, which reflects changes in the Consumer Price Index to maintain the purchasing power of GST credit payments.
The increase will be effective for the benefit year running from July 2026 to June 2027.
Why GST Payments Increase Annually
Income-tested federal benefits like the GST credit, Canada Child Benefit, and Child Disability Benefit are indexed to inflation to prevent a decline in their real value over time.
Indexation ensures that benefit amounts increase with the cost of living, even if wages do not rise accordingly.
Without indexation, recipients would experience a gradual loss of purchasing power each year.
Increases typically take effect on July 1st of each year, marking the start of the new program year for these benefits.
GST Credit Indexation History
- 2026: 2.0%
- 2025: 2.7%
- 2024: 4.7%
- 2023: 6.3%
The fluctuation in indexation rates in recent years reflects changes in inflation levels, with higher rates in 2023 and 2024 due to elevated inflation.
The 2% increase for 2026, while smaller, continues to provide meaningful support to recipients.
How GST Payment Amounts Are Calculated
GST credit amounts are recalculated annually in July based on information from the previous year’s tax return, with each payment year running from July to June.
