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Tax benefits in Canada come in three kinds: deductions that shrink your income, credits that shrink your tax bill, and payments the government sends you. Picture two kids, one under 6 and the other between 6 and 17, in a home with $60,000 of net income. That household gets $12,102 a year in Canada Child Benefit payments alone. Most of these need a filed return.
What is the difference between a deduction, a credit and a benefit?
A deduction cuts the income the CRA taxes, so it saves tax at your top rate. A non-refundable credit takes a slice straight off your tax, at the lowest federal rate of 14% for 2026. A benefit is a payment, and it arrives even if you owe no tax. People mix these up all the time. The gap can be big.
Here’s what a deduction does in practice. Put $5,000 into your RRSP on $70,000 of income in Ontario and the RRSP calculator shows $1,483 less income tax. That’s 29.6% of what you paid in. A credit for the same $5,000 would save just $700 federally.
Which payments can you get in 2026 and 2027?
Two payments reach the most households, and both come from the return you filed last year. The figures below cover July 2026 to June 2027 and are based on your 2025 income.
| Payment | Amount for July 2026 to June 2027 |
|---|---|
| Canada Child Benefit, per child under 6 | Up to $8,157 a year |
| Canada Child Benefit, per child aged 6 to 17 | Up to $6,883 a year |
| Family income where the CCB starts to shrink | $38,237 |
| GST/HST credit, adult | $445 a year |
| GST/HST credit, child under 19 | $234 a year |
| Employment Insurance, most per week | $729 at 55% of average earnings |
One change to watch: from July 2026 the old GST/HST credit goes out under a new name, the Canada Groceries and Essentials Benefit, with the same structure and larger amounts.
How much would your family get?
Take the couple above with two children and change only the income. At $60,000 the Canada Child Benefit calculator gives $12,102 a year, or $1,008.50 a month. At $100,000 that family receives $8,040, or about $670 a month. The most this family could receive is $15,040.
The grocery payment is smaller but steadier. A single adult with an income of $30,000 gets the full $679 in the GST/HST credit calculator. A couple with two children and $40,000 gets $1,358, paid in four instalments of $339.50. Neither number includes provincial payments.
Put those side by side and you can see why a missed return hurts. A family at $60,000 with the two kids collects roughly $1,008 every month from the child benefit. Skip filing and that cheque simply doesn’t show up, which for most households is a far bigger loss than any late fee.
Which tax credits and deductions are worth checking?
The disability tax credit is the one most often missed. It only works once the CRA approves your form. The disability tax credit calculator shows the amount for each year.
Medical costs, tuition, donations and the age amount are the others people ask about. The tax credits calculator adds them up, but it’s federal only, so your province will add its own credits on top. Treat its result as a floor.
Registered plans are the deductions worth the most. The RRSP limit for 2026 is $33,810, or whichever is lower of that cap and a share of last year’s earned income, at a rate of 18%. Room you didn’t use rolls over.
Where do you start if you’ve never claimed anything?
Begin with the return itself, because everything else hangs off it. File it on time, even if your income is low or you owe nothing. Then sort what applies to you into the three piles: deductions (RRSP, child care, union dues), credits (tuition, medical, donations, disability) and benefits (child benefit, grocery payment, EI if you lost work). For a first-time filer, that sorting usually shows one or two items you didn’t know about. Even a few bucks a month helps when groceries keep climbing, and these payments arrive whether or not you owe a cent of tax. Our guide to benefits and credits lays the whole list out.
Mistakes that cost money
Not filing is the big one, because both payments are set from your return and nobody sends them without one. They also shrink as income grows, so a bonus or a big RRSP withdrawal in one year can lower the payments you get the following year, sometimes by more than you’d guess.
Another trap is chasing a deduction you can’t use. RRSP contributions above your room are penalised at 1% a month once you’re past the $2,000 buffer. Check your notice of assessment for the room figure before you contribute.
Provinces run their own programs too. We haven’t checked them, so look at your province’s finance page.
Sources, and how we checked them
The child benefit and grocery payment figures come from the Canada Revenue Agency‘s pages for July 2026 to June 2027. The Employment Insurance maximum is Service Canada‘s 2026 figure, and the RRSP limit comes from the CRA. The phase-in and reduction rates of the grocery benefit are worked out from the CRA payment chart rather than printed as rates. The federal credit rate of 14% is the 2026 lowest federal rate.
Frequently asked questions
Do I have to file a return to get the child benefit?
Yes. The payment is worked out from the return you file, so you need one on file for the year the CRA uses.
What is the GST/HST credit called now?
From July 2026 it is paid as the Canada Groceries and Essentials Benefit, with the same structure and higher amounts.
Is a tax credit better than a deduction?
Neither is better in general. A deduction saves tax at your top rate, while a credit takes 14% of its amount off your federal tax.
How much can I put in an RRSP for 2026?
Up to 18% of last year's earned income, capped at $33,810, plus any unused room from earlier years.
Do benefits change when my income changes?
Yes. The child benefit and the grocery credit shrink as family income rises, and they are set from the previous year's return.
All family and benefits calculators
- Canadian tax credits and government benefits explained
The difference between tax credits and benefits in Canada, how they're worked out from your return, and the calculators for the ones people claim most