Bill C-19
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- ENGLISH
- RECOMMENDATION RECOMMENDATION
- SUMMARY SUMMARY
- 1 Short Title 1 Short Title
- 2 Income Tax Act 2 Income Tax Act
- 6 Coordinating Amendments 6 Coordinating Amendments
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First Session, Forty-fifth Parliament, 3-4 Charles III, 2025-2026 |
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HOUSE OF COMMONS OF CANADA |
An Act to amend the Income Tax Act
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FIRST READING, January 28, 2026
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MINISTER OF FINANCE AND NATIONAL REVENUE |
RECOMMENDATION
Her Excellency the Governor General recommends to the House of Commons the appropriation of public revenue under the circumstances, in the manner and for the purposes set out in a measure entitled “An Act to amend the Income Tax Act”.
SUMMARY
This enactment amends the Income Tax Act in order to increase the maximum annual Goods and Services Tax/Harmonized Sales Tax credit (GSTC) amounts by 50% for the 2025-2026 benefit year. It also amends that Act to increase the maximum annual GSTC amounts by 25% as of the 2026-2027 benefit year for a period of five years.
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Available on the House of Commons website at the following address:
www.ourcommons.ca
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1st Session, 45th Parliament, 3-4 Charles III, 2025-2026 |
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HOUSE OF COMMONS OF CANADA |
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BILL C-19 |
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An Act to amend the Income Tax Act |
His Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:
Short Title
Short title
1 This Act may be cited as the Canada Groceries and Essentials Benefit Act.
R.S., c. 1 (5th Supp.)
Income Tax Act
2 Subsection 117.1(2) of the Income Tax Act is amended by adding the following after paragraph (m):
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Start of inserted block
(m.1) each of the amounts expressed in dollars in subsection 122.5(3.005), for a taxation year that begins after 2026;
End of inserted block
3 (1) Section 122.5 of the Act is amended by adding the following after subsection (3.003):
Additional deemed payment — January 2026
Start of inserted block(3.004) An eligible individual in relation to a month specified for a taxation year who files a return of income for the taxation year is deemed to have paid during the specified month on account of their tax payable under this Part for the taxation year an amount determined by the formula
- A
(a) $1,047,
(b) $1,047 for the qualified relation, if any, of the individual in relation to the specified month,
(c) if the individual has no qualified relation in relation to the specified month and is entitled to deduct an amount for the taxation year under subsection 118(1) because of paragraph (b) of the description of B in that subsection in respect of a qualified dependant of the individual in relation to the specified month, $1,047,
(d) $552 times the number of qualified dependants of the individual in relation to the specified month, other than a qualified dependant in respect of whom an amount is included under paragraph (c) in computing the total for the specified month,
(e) if the individual has no qualified relation and has one or more qualified dependants, in relation to the specified month, $552, and
(f) if the individual has no qualified relation and no qualified dependant, in relation to the specified month, the lesser of $552 and 6% of the amount, if any, by which the individual’s income for the taxation year exceeds $11,337;
- B
- C
Additional deemed payment — July 2026 to April 2031
Start of inserted block(3.005) An eligible individual in relation to a month specified for a taxation year who files a return of income for the taxation year is deemed to have paid during the specified month on account of their tax payable under this Part for the taxation year an amount equal to 1/4 of the amount, if any, determined by the formula
- A
(a) $445,
(b) $445 for the qualified relation, if any, of the individual in relation to the specified month,
(c) if the individual has no qualified relation in relation to the specified month and is entitled to deduct an amount for the taxation year under subsection 118(1) because of paragraph (b) of the description of B in that subsection in respect of a qualified dependant of the individual in relation to the specified month, $445,
(d) $234 times the number of qualified dependants of the individual in relation to the specified month, other than a qualified dependant in respect of whom an amount is included under paragraph (c) in computing the total for the specified month,
(e) if the individual has no qualified relation and has one or more qualified dependants, in relation to the specified month, $234, and
(f) if the individual has no qualified relation and no qualified dependant, in relation to the specified month, the lesser of $234 and 2% of the amount, if any, by which the individual’s income for the taxation year exceeds $11,564; and
- B
(2) Section 122.5 of the Act is amended by adding the following after subsection (3.04):
January 2026 payment — shared-custody parent
Start of inserted block(3.05) Notwithstanding subsection (3.004), if an eligible individual is a shared-custody parent (as defined in section 122.6, with reference to the term “qualified dependant” read as a reference to that term as defined in subsection (1)) in respect of one or more qualified dependants at the beginning of a month, the amount deemed by subsection (3.004) to have been paid during the specified month is equal to the amount determined by the formula
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- B
July 2026 to April 2031 payments — shared-custody parent
Start of inserted block(3.06) Notwithstanding subsection (3.005), if an eligible individual is a shared-custody parent (as defined in section 122.6, with reference to the term “qualified dependant” read as a reference to that term as defined in subsection (1)) in respect of one or more qualified dependants at the beginning of a month, the amount deemed by subsection (3.005) to have been paid during the specified month is equal to the amount determined by the formula
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- B
(3) Subsection 122.5(3.2) of the Act is replaced by the following:
Advance payment
(3.2) If this subsection applies, the total of the amounts that would otherwise be deemed by Insertion start subsections Insertion end (3) Insertion start and (3.005) Insertion end to have been paid on account of the eligible individual’s tax payable under this Part for the taxation year during the particular month specified for the taxation year, and during each subsequent month specified for the taxation year, is deemed to have been paid by the eligible individual on account of their tax payable under this Part for the taxation year during the particular specified month for the taxation year, and the amount deemed by Insertion start subsections Insertion end (3) Insertion start and (3.005) Insertion end to have been paid by the eligible individual during those subsequent months specified for the taxation year is deemed, except for the purpose of this subsection, not to have been paid to the extent that it is included in an amount deemed to have been paid by this subsection.
(4) Section 122.5 of the Act is amended by adding the following after subsection (4.3):
January 2026 — month specified
Start of inserted block(4.4) Notwithstanding subsection (4) and for the purposes of this section, the month specified in subsection (3.004) is January 2026 and the taxation year is the 2024 taxation year.
End of inserted blockJuly 2026 to April 2031 — month specified
Start of inserted block(4.5) Notwithstanding subsection (4) and for the purposes of this section, the months specified in subsection (3.005) are July 2026, October 2026, January 2027, April 2027, July 2027, October 2027, January 2028, April 2028, July 2028, October 2028, January 2029, April 2029, July 2029, October 2029, January 2030, April 2030, July 2030, October 2030, January 2031 and April 2031, and if the month specified is July or October, the taxation year for the month specified is the immediately preceding taxation year and if the month specified is January or April, the taxation year for the month specified is the second preceding taxation year.
End of inserted blockSubsection (3) does not apply — month specified
Start of inserted block(4.6) Notwithstanding subsection (3), the amount that an eligible individual in relation to a month specified in subsection (4.5) is deemed to have paid during the specified month on account of their tax payable under this Part for the taxation year under subsection (3) is deemed to be nil for that specified month.
End of inserted block4 (1) Paragraph 152(1)(b) of the Act is replaced by the following:
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(b) the amount of tax, if any, deemed by any of subsections 120(2) or (2.2), 122.5(3) to Insertion start (3.005) Insertion end , 122.51(2), 122.7(2) or (3), 122.72(1), 122.8(4), 122.9(2), 122.91(1), 125.4(3), 125.5(3), 125.6(2) or (2.1), 127.1(1), 127.41(3), 127.44(2), 127.45(2), 127.48(2), 127.49(2) or 210.2(3) or (4) to be paid on account of the taxpayer’s tax payable under this Part for the year.
(2) Paragraph 152(1.2)(d) of the Act is replaced by the following:
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(d) the Minister determines the amount deemed by any of subsections 122.5(3) to Insertion start (3.005) Insertion end , 122.72(1) or 122.8(4) to have been paid by an individual for a taxation year to be nil, subsection (2) does not apply to the determination unless the individual requests a notice of determination from the Minister.
(3) Paragraph 152(4.2)(b) of the Act is replaced by the following:
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(b) redetermine the amount, if any, deemed by any of subsections 120(2) or (2.2), 122.5(3) to Insertion start (3.005) Insertion end , 122.51(2), 122.7(2) or (3), 122.8(4), 122.9(2), 122.91(1), 127.1(1), 127.41(3) or 210.2(3) or (4) to be paid on account of the taxpayer’s tax payable under this Part for the year or deemed by subsection 122.61(1) to be an overpayment on account of the taxpayer’s liability under this Part for the year.
5 Paragraph 160.1(1.1)(b) of the Act is replaced by the following:
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(b) the total of the amounts deemed by Insertion start any of subsections Insertion end 122.5(3) or (3.002) Insertion start to (3.005) Insertion end to have been paid by the individual during those specified months.
Coordinating Amendments
Bill C-15
6 (1) Subsections (2) to (6) apply if Bill C-15, introduced in the 1st session of the 45th Parliament and entitled the Budget 2025 Implementation Act, No. 1 (in this section referred to as the “other Act”), receives royal assent.
(2) Paragraph 152(1)(b) of the Income Tax Act, as enacted by subsection 4(1) of this Act, is replaced by the following:
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(b) the amount of tax, if any, deemed by any of subsections 120(2) or (2.2), 122.5(3) to (3.005), 122.51(2), 122.7(2) or (3), 122.72(1), 122.8(4), 122.9(2), 122.91(1), 122.92(3), 122.93(2), 125.4(3), 125.5(3), 125.6(2) or (2.1), 127.1(1), 127.41(3), 127.42(2) or (3), 127.421(2) or (3), 127.44(2), 127.45(2), 127.48(2), 127.49(2), 127.491(2) or 210.2(3) or (4) to be paid on account of the taxpayer’s tax payable under this Part for the year.
(3) Paragraph 152(1.2)(d) of the Income Tax Act, as enacted by subsection 4(2) of this Act, is replaced by the following:
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(d) the Minister determines the amount deemed by any of subsections 122.5(3) to (3.005), 122.72(1), 122.8(4) or 127.421(2) or (3) to have been paid by a person for a taxation year to be nil, subsection (2) does not apply to the determination unless the person requests a notice of determination from the Minister.
(4) Paragraph 152(4.2)(b) of the Income Tax Act, as enacted by subsection 4(3) of this Act, is replaced by the following:
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(b) redetermine the amount, if any, deemed by any of subsections 120(2) or (2.2), 122.5(3) to (3.005), 122.51(2), 122.7(2) or (3), 122.8(4), 122.9(2), 122.91(1), 122.92(3), 122.93(2), 127.1(1), 127.41(3) or 210.2(3) or (4) to be paid on account of the taxpayer’s tax payable under this Part for the year or deemed by subsection 122.61(1) to be an overpayment on account of the taxpayer’s liability under this Part for the year.
(5) Paragraph 152(1)(b) of the Income Tax Act, as enacted by subsection (2), comes into force on the day on which this Act receives royal assent, except that, for the period beginning on January 1, 2026 and ending on the day immediately before the day on which this Act receives royal assent, that paragraph is to be read as follows:
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(b) the amount of tax, if any, deemed by any of subsections 120(2) or (2.2), 122.5(3) to (3.003), 122.51(2), 122.7(2) or (3), 122.72(1), 122.8(4), 122.9(2), 122.91(1), 122.92(3), 125.4(3), 125.5(3), 125.6(2) or (2.1), 127.1(1), 127.41(3), 127.42(2) or (3), 127.421(2) or (3), 127.44(2), 127.45(2), 127.48(2), 127.49(2), 127.491(2) or 210.2(3) or (4) to be paid on account of the taxpayer’s tax payable under this Part for the year.
(6) Paragraph 152(4.2)(b) of the Income Tax Act, as enacted by subsection (4), comes into force on the day on which this Act receives royal assent, except that, for the period beginning on January 1, 2026 and ending on the day immediately before the day on which this Act receives royal assent, that paragraph is to be read as follows:
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(b) redetermine the amount, if any, deemed by any of subsections 120(2) or (2.2), 122.5(3) to (3.003), 122.51(2), 122.7(2) or (3), 122.8(4), 122.9(2), 122.91(1), 122.92(3), 122.93(2), 127.1(1), 127.41(3) or 210.2(3) or (4) to be paid on account of the taxpayer’s tax payable under this Part for the year or deemed by subsection 122.61(1) to be an overpayment on account of the taxpayer’s liability under this Part for the year.
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Published under authority of the Speaker of the House of Commons
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