Canada tax credits and benefits can be worth thousands of dollars a year, and many newcomers miss them because most are paid only after you file. Credits and deductions reduce the tax you owe, while benefits such as the Canada Groceries and Essentials Benefit (which replaced the GST/HST credit in July 2026) and the Canada child benefit are paid to you based on your family's income. This guide explains the main credits, deductions and benefits for the 2025 return and 2026 payments, how they apply in a part-year, and how to claim them from Toronto, Brampton, Calgary, Surrey and elsewhere.
Credits versus deductions: what is the difference?
| Type | How it works | Examples |
|---|---|---|
| Deduction | Reduces the income that is taxed | RRSP (line 20800), FHSA (line 20805), support payments (line 22000), child care, moving expenses |
| Non-refundable credit | Reduces tax, but cannot create a refund by itself | Basic personal amount, spouse or common-law partner amount, disability amount, home buyers' amount, tuition, medical expenses, donations |
| Refundable credit | Paid even if you owe no tax | Examples include the Canada Workers Benefit, claimed with Schedule 6 |
| Benefit | Paid to you based on family income | Canada child benefit, Canada Groceries and Essentials Benefit |
For the 2025 tax year, the federal rate on the first bracket is 14.5% (it fell from 15% to 14% on July 1, 2025), and most non-refundable credits follow that lowest rate. The basic personal amount, which most filers claim, is worth roughly $2,339 at the maximum ($16,129 x 14.5%).
Canada tax credits and benefits: the core credits for the 2025 return
- Basic personal amount (line 30000). $16,129 if net income (line 23600) is $177,882 or less, $14,538 if it is more than $253,414, and a federal worksheet in between.
- Amounts for family. Spouse or common-law partner and dependant amounts are claimed on Schedule 5, and amounts transferred from a spouse on Schedule 2.
- Medical, donations, tuition. Claimed on the return with receipts; donations use Schedule 9 and tuition uses Schedule 11.
- Home buyers' amount, home accessibility, adoption, digital news subscriptions and the multigenerational home renovation tax credit (Schedule 12) are other items the CRA lists.
- Foreign tax credit. If you paid foreign tax on income that Canada also taxes, claim it on Form T2209 (line 40500).
Provincial or territorial credits are claimed on the provincial form in your package and vary: Ontario, British Columbia and Alberta each have their own list. Our T1 step-by-step guide shows where each credit sits on the return, and the registered accounts guide covers the RRSP and FHSA deductions.
Benefits for 2026 payments
Canada Groceries and Essentials Benefit
The CRA says the CGEB replaced the GST/HST credit in July 2026. It is a tax-free quarterly payment for people with low and modest incomes. In July 2026 the amount increased by 25%, and that increase stays for five years from 2026 to 2031. A one-time top-up was issued on June 5, 2026 to people entitled to the GST/HST credit in January 2026.
To qualify you must be a resident of Canada for tax purposes in both the month before a payment and the month it is paid, and be at least 19 (younger if you have or had a spouse or common-law partner, or are a parent living with your child). You do not need to have filed a first return to receive it. The CRA's income limits for base year 2025 include:
| Family situation | Maximum adjusted family net income (base year 2025) |
|---|---|
| Single, no children | $60,012 |
| Single, one child | $68,912 |
| Couple, no children | $64,232 |
Canada child benefit
The CCB is a tax-free monthly payment for a primary caregiver of a child under 18. You or your spouse or common-law partner must be a Canadian citizen, permanent resident, protected person or a temporary resident who has lived in Canada for the previous 18 months and holds a valid permit. For July 2026 to June 2027 (based on 2025 family net income) the maximum is $8,157 a year ($679.75 a month) for a child under 6 and $6,883 a year ($573.58 a month) for ages 6 to 17. The reduction starts above $38,237 of adjusted family net income and gets steeper above $82,847.
Many provinces and territories add their own benefit programs, which the CRA administers in some cases.
How to claim credits and benefits, step by step
- File your return every year, even with little or no income. Benefits depend on it.
- Apply right after arrival if you are a newcomer (see the newcomer first-year guide). Use Form RC151 for the CGEB (a web form is available if you have no children), Form RC66 for the CCB and Form RC66SCH for status and income information. If your spouse is a non-resident, Form CTB9 reports their income.
- Report foreign income for the two years before arrival with a Statement of Income so the CRA can calculate amounts.
- Claim part-year credits correctly. Non-refundable credits based on a full year, such as the basic personal amount, are pro-rated by days in Canada. Others, such as CPP and EI contributions, tuition, medical expenses and donations, are not pro-rated for the resident part of the year.
- Meet the 90% rule or attach a note. For the non-resident part of the year, you can claim the remaining credits in full if Canadian-source income is 90% or more of your net world income for that period. Attach a note stating your net world income in Canadian dollars, showing Canadian and foreign amounts separately.
- Keep the CRA updated about your address, marital status, children and permit. If a temporary resident permit expires, payments stop.
Documents and information you need
- SIN or TTN for you and your spouse, plus children's birth and immigration documents.
- Proof of arrival date and immigration status.
- Income and receipts: medical, donation, tuition, child care, moving.
- Foreign tax payment evidence.
- Your CRA account, which shows benefit payments and the CGEB and CCB notices.
Deadlines and penalties
Credits and deductions are claimed on the return due April 30, 2026 for 2025 (June 15, 2026 for the self-employed). Benefit years run July to June and are recalculated each year from your prior-year return, so a missed return can stop payments, and the Guaranteed Income Supplement for seniors can be reduced if you have not filed. Report a change in marital status by the end of the following month. A late return can also trigger the penalties in our filing deadlines guide.
Worked example: a Brampton family
Sandeep and Harpreet are permanent residents in Brampton with children aged 3 and 8. At the maximum, the Canada child benefit for July 2026 to June 2027 would be $8,157 plus $6,883, or $15,040 for the year. Because their 2025 adjusted family net income is above $38,237, the actual figure is lower, so they use the CRA's benefits calculator and keep their return filed each year. Each also claims the basic personal amount, worth about $2,339 at the 14.5% rate for 2025.
If you also file in the U.S. or India
Canadian credits and benefits are Canada-only concepts: a U.S. return has its own credits, and U.S. citizens and residents must also consider whether Canadian payments are reportable income or foreign-source items in the United States. We review that on the U.S. side. Indian-origin newcomers should align dependants, residence dates and foreign income across returns; see the moving from India to Canada checklist, the U.S. Form 1040 roadmap and three-country family tax planning.
Mistakes to avoid
- Waiting to apply for benefits until after the first return when the CRA allows earlier applications.
- Claiming the full basic personal amount for a part year without pro-rating.
- Leaving out foreign income for the two years before arrival when asked for a statement.
- Forgetting to tell the CRA about a change in family situation.
- Letting a permit expire without updating the CRA.
How we can help
We are a U.S. CPA firm in Aurora, Illinois. We prepare the U.S. return for Canadian residents with U.S. ties, review how Canadian benefits and credits interact with the U.S. return, and coordinate with your Canadian CPA and Indian Chartered Accountant. See individual tax returns for newcomers and NRIs. More Canadian guides are on the Canada hub.
Frequently asked questions
What replaced the GST/HST credit?
The Canada Groceries and Essentials Benefit replaced it in July 2026. The CRA says eligibility rules are the same as before and that you are considered when you file your taxes.
Can a newcomer get the Canada child benefit?
Yes, if the caregiver and child meet the residence and status rules. A temporary resident must have lived in Canada for the previous 18 months and hold a valid permit.
Do I need to file a return to get the CGEB as a newcomer?
No. The CRA says you do not need to do your first tax return before you can get it, although filing each year keeps payments flowing.
Are credits pro-rated in the year I arrive?
Many are, by the number of days you were resident. Others, such as tuition, medical expenses and donations, are not pro-rated for the resident part of the year.
Does a spouse who lives abroad affect my benefits?
Yes. A non-resident spouse's income is reported on Form CTB9 for the CCB, so include it.
Official sources
- CRA: Line 30000, basic personal amount
- CRA: Canada Groceries and Essentials Benefit
- CRA: Who is eligible for the Canada Groceries and Essentials Benefit
- CRA: Canada child benefit, before you apply
- CRA: How we calculate your CCB
- CRA: Federal non-refundable tax credits for newcomers and emigrants
This page summarizes public guidance in plain language. If anything here differs from the official source, the official source controls.
General information only. It is not tax, legal, accounting or immigration advice for your situation, and rules change; confirm the current rules with the official source or a licensed professional in the relevant country.