Three major changes to CRA benefits in 2027, with extra payments of up to $679

OTTAWA — Canada is preparing three significant changes to the financial assistance programs administered by the Canada Revenue Agency (CRA), as part of the proposals in the 2026 federal budget, with the aim of easing cost-of-living pressures for millions of residents during 2027.

The measures include an additional payment to help families cope with food costs, an expansion of the benefit for low-income workers, and the conversion of the tax credit for family caregivers into refundable support.

Some recipients could receive hundreds of dollars more, while the proposed annual value of the workers benefit reaches $3,143 for eligible families.

The government stressed, however, that the proposed measures require legislative approval before they can take effect.

First: an extra payment of up to $679 to deal with rising food costs

The government proposes a one-time payment equal to 50% of the annual entitlement under the Canada Groceries and Essentials Benefit.

The extra payment would reach $339 for a single person without children, while it could reach $679 for a family of two spouses and two children.

More than 12 million people are expected to benefit, at a total cost of about $4.1 billion.

Counting regular benefits and earlier increases, total support in the 2026-2027 benefit year could reach $1,290 for an individual and $2,570 for a family of two spouses and two children.

The government aims to issue the extra payment in early 2027, but no official date has been set so far.

Under the proposal, current recipients would not need to submit a separate application, as the CRA would determine their eligibility based on their tax information.

Second: a higher workers benefit and broader eligibility

The second change concerns the Canada Workers Benefit, which the government proposes to develop under the name Build Canada Workers Benefit.

The maximum annual value of the benefit would rise from $1,709 to $1,859 for eligible individuals.

For families, the maximum value would rise from $2,943 to $3,143.

The government also intends to lower the minimum earned income required for the benefit to begin from $3,000 to $500 a year.

This change would allow about 180,000 additional workers to benefit from the program.

The government expects about 1.9 million workers to benefit from the proposed changes, and some low-income earners could receive annual increases of up to $675.

An important change to the timing of workers' payments

The proposal also changes how advance payments of the workers benefit are issued.

Starting in July 2027, the share of advance payments would drop from 50% to 25% of the entitlement for the previous tax year.

Advance payments are to be eliminated entirely starting with the 2028 tax year.

Recipients would then receive their annual entitlements after filing their tax returns, rather than receiving part of them during the year.

Although annual amounts rise for some workers, the change in payment timing could affect families that rely on periodic payments to cover their daily expenses.

Third: support of up to $1,260 for family caregivers

The third change targets people who provide unpaid care to family members with disabilities or health conditions that require assistance.

The budget proposes converting the Canada Caregiver Credit into a refundable credit starting with the 2027 tax year.

This means eligible people could receive financial support even if they owe no income tax.

The assistance reaches up to $1,260 a year in some cases, depending on the relationship to the person receiving care and on tax conditions.

The government expects about 585,000 people to benefit, including 180,000 who currently receive no support from the non-refundable credit.

The proposed budget allocates an additional $845 million over four years to implement this measure.

When will the new assistance reach bank accounts?

The expected timing varies by type of benefit.

• Additional groceries payment: early 2027
• Increase to the workers benefit: after filing the 2027 return, during 2028
• Refundable caregiver credit: after filing the 2027 return, during 2028

This timing means that not all three changes will become bank payments during 2027.

Eligibility also depends on income, family status and meeting the conditions specific to each program.

How Canadians can make sure they receive what they are owed

The Canada Revenue Agency stresses the importance of filing annual tax returns, even for people who do not pay income tax.

The agency uses tax information to determine eligibility for many support programs, including family, child and workers benefits.

Recipients are also advised to keep their bank account details, address and marital status up to date with the CRA, to avoid delays in any future payments.