Canadian Tax Guide · 2026
The GST/HST Credit has a new name and a bigger payment. Here's what it is — and why it doesn't change the tax on your invoices.
The Canada Groceries and Essentials Benefit (CGEB) is the new name for the GST/HST Credit — a benefit paid to individuals. It does not change the GST/HST sales tax you charge and report on your invoices. Nothing about how you bill your clients changes.
If you've seen "CGEB" pop up recently, here's what it is in plain terms — and why it matters (and doesn't) for Canadian business owners.
Starting in July 2026, the long-running GST/HST Credit is being renamed the Canada Groceries and Essentials Benefit. Same idea, new name, bigger payment: a tax-free quarterly amount that helps lower- and modest-income households keep up with the cost of everyday essentials.
The reason it causes confusion is simple — two completely different things share the "GST/HST" name. One is a tax you charge; the other is a benefit people receive. CGEB only touches the second one. Let's untangle them.
The name overlap is the whole source of confusion. Here's the difference at a glance.
| GST/HST — the sales tax | GST/HST Credit — the benefit | |
|---|---|---|
| What it is | The 5%–15% tax you add to invoices, collect from clients, and remit. | A tax-free payment the government sends to households to offset the sales tax they pay. |
| Who it touches | Businesses — this is what iBill calculates for you. | Individuals and families with low or modest incomes. |
| Renamed to CGEB? | No — unchanged | Yes — this is what became CGEB |
CGEB replaces the benefit on the right. The tax on the left — the one on your invoices — stays exactly the same.
The federal GST is still 5%, and the HST provinces are still 13% to 15% (Nova Scotia moved to 14% in April 2025). CGEB doesn't touch a single rate.
You charge tax the same way, on the same line items, for the same clients. iBill calculates GST/HST/PST/QST automatically by province — before and after CGEB, identically.
What you collect and what you remit are calculated from the sales tax — not the benefit. Your filing and remittance process is exactly as it was.
CGEB is a benefit some of your customers — or you personally — may receive. If a client ever asks why their "GST credit" changed, it's the same benefit, just renamed and increased.
The GST/HST Credit is now called the Canada Groceries and Essentials Benefit. Same eligibility, same structure — new name.
Base payments increased about 25%, running from 2026 through 2031 and indexed to inflation. A one-time top-up was also paid earlier in 2026.
Paid quarterly, and completely tax-free.
Individuals and families with low or modest incomes.
It's automatic based on your income tax return — no separate application if you file.
Unchanged. GST stays 5%; HST provinces stay 13%–15% (Nova Scotia 14% since April 2025).
Since CGEB doesn't change the tax on your invoices, here's how iBill handles GST/HST for you.
Work out the tax on any amount, for any province — a free tool with no sign-up required.
Open the calculator →Registration thresholds, place-of-supply rules, and when you need to start charging tax.
Read the guide →How to file your GST/HST return, what to report, and how iBill prepares the numbers for you.
Read the guide →Automatic GST/HST/PST/QST by province, on every invoice. Start free — no credit card required.
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