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Canada's 2026 budget raises grocery benefit and expands tax credits for low-wage workers
Canada's 2026 budget raises its grocery benefit by 50 per cent and expands tax credits for low-wage workers.
Key points
- The Canada Groceries and Essentials Benefit top-up raises payments by 50 per cent for the 2026-27 program year.
- The budget makes the Canada caregiver credit refundable, which could help about 180,000 people who do not currently get it.
- The government suspended the fuel excise tax, saving Canadians about 10 cents a litre on gasoline, and extended that to January 2027.
Why it matters. Lower-income households may receive larger quarterly payments and refundable credits, though economist Armine Yalnizyan says most of the affordability relief is short term.
The federal government's 2026 budget, tabled Thursday, raises quarterly Canada Groceries and Essentials Benefit payments by 50 per cent for the 2026-27 program year. Combined with previous increases, a single person could get up to $1,290 and a couple with two children up to $2,570. Economist Armine Yalnizyan said there is little in the budget for everyday people beyond short-term relief on groceries and gas.
Latest updates
Canada's 2026 budget raises grocery benefit and expands tax credits for low-wage workers
The 2026 federal budget increases payments under the Canada Groceries and Essentials Benefit. It also expands a tax credit for low-wage workers and makes the Canada caregiver credit refundable. CBC News reports that the affordability measures are mostly short term. Much of the budget's emphasis went instead to measures aimed at boosting business investment. The budget was tabled on November 5, 2026.