Canada Confirms 2026 Benefit Hike For Millions – More Money for Seniors, Families, and Low-Income Workers

Key federal benefits across Canada are set for meaningful increases in 2026, with seniors, workers, and low- to modest-income families expected to see higher payments and income thresholds. These changes are driven by both inflation-linked adjustments and federal policy reforms aimed at easing financial pressures on households.

Broad Overview of the 2026 Benefit Increases

Starting January and July 2026, the federal government will roll out increases for key programs like Old Age Security (OAS), the Canada Pension Plan (CPP), the Canada Workers Benefit (CWB), the GST/HST credit, and child-related payments including the Canada Child Benefit (CCB) and the Child Disability Benefit.

These enhancements reflect Consumer Price Index (CPI) trends and will provide slightly larger payments and more generous income eligibility across various programs.

Canada Workers Benefit (CWB) Set to Rise in 2026

The Canada Workers Benefit, a refundable tax credit for low- and modest-income earners, will increase for the 2026 tax year. The federal government confirms a 2% indexation will apply, building on the 2025 enhancements.

CWB 2025 Base (Affects Early 2026 Advance Payments):

Category	Max Basic CWB (2025)	Disability Supplement (2025)	Phase-Out Income
Singles (no children)	$1,633	$843	$26,855
Families (with children/spouse)	$2,813	$843/person	$30,639

Expect these numbers to increase modestly for 2026, with the Advance CWB paid in three instalments: July, October, and January.

Bigger GST/HST Credits for Low-Income Canadians

The GST/HST credit will rise in July 2026, offering greater relief for low- and modest-income households. The current figures for the 2025–26 cycle are:

• $533 for single adults
• $698 for couples
• $184 per child under 19

From July 2026, these amounts will go up under CRA’s inflation adjustment policy. In addition, income thresholds used to determine eligibility will also increase, providing more inclusive support.

Stronger Financial Support for Families with Children

Families will benefit from CPI-linked enhancements to the Canada Child Benefit (CCB) and the Child Disability Benefit.

Although the final dollar figures will be published closer to July 2026, the government has indicated both benefits will increase again under standard indexation.

Notably, the Child Disability Benefit—for children eligible for the Disability Tax Credit—will also increase from July 2026.

OAS Pension Increases for Seniors in 2026

Seniors aged 65+ receiving Old Age Security will see their monthly pensions increase by 0.3% in Q1 2026, rounding off a total 2% annual increase.

Key OAS Numbers for January–March 2026:

Age Group	Monthly OAS	Notable Changes
65–74	~$742.31	Quarterly indexing
75+	~$816.54	10% permanent age-based top-up

Additionally, the OAS recovery tax threshold will rise to approximately $95,323, allowing higher-income seniors to retain more of their OAS benefits.

CPP Retirement and Disability Payments to Climb

The Canada Pension Plan (CPP) retirement and disability payments are adjusted annually in January. For 2026, a 2% increase is confirmed.

This means:

• Average CPP pension expected to rise from ~$1,360/month in 2025 to ~$1,400/month in 2026, assuming continued inflation around 3%.

Public-sector defined-benefit pensions will also generally see a 2% cost-of-living increase, reinforcing income security for retired Canadians.

How 2026 Federal Tax Changes Benefit Households

CRA’s 2026 updates include:

• Higher income thresholds for all federal tax brackets
• Updated non-refundable credit amounts
• Full-year impact of the 14% lowest federal marginal tax rate (cut from 15% in mid-2025)

These changes help counter inflation and ensure that more income stays in Canadians’ pockets, especially for low- to middle-income earners.

Holistic Impact: More Money Across the Board

The combined effect of these changes is significant:

• A working family could receive higher CWB, bigger GST credits, and enhanced CCB, while paying less tax.
• A senior drawing both OAS and CPP will benefit from quarterly and annual indexation.
• Seniors with partial employment can retain more earnings before facing OAS clawbacks.

These updates make it easier for Canadians to manage rising living costs.

How to Prepare for the 2026 Benefit Year

To take full advantage of the benefit increases:

1. File your 2025 tax return on time, as 2026 benefits depend on previous-year income.
2. Update your marital status, dependents, and income details with CRA and Service Canada.
3. Review your budget considering the expected increases.
4. Consult a tax advisor if your income is close to clawback thresholds.
5. Use CRA’s MyAccount and Service Canada portals to track payments and eligibility.

Top 5 FAQs About Canada’s 2026 Federal Benefit Increases

1. What benefits are increasing in Canada in 2026?

Federal programs including OAS, CPP, GST/HST credit, CWB, and child benefits like CCB and the Child Disability Benefit are all seeing increases due to indexation and tax updates.

2. How much will OAS and CPP payments increase in 2026?

OAS will rise by 0.3% in Q1 2026, totalling around a 2% annual increase. CPP benefits will also increase by 2% starting January 2026.

3. Who qualifies for the Canada Workers Benefit increase?

Low- and modest-income workers who meet income and filing criteria qualify for the CWB. Thresholds and payment maximums are increasing by about 2% in 2026.

4. When will the new GST/HST credit amounts apply?

Updated GST/HST credit amounts for the 2026–27 cycle will apply from July 2026, based on 2025 tax returns.

5. Do I need to apply for these benefits again?

No. As long as you file your taxes and remain eligible, most benefits are automatically applied based on CRA and Service Canada calculations.