New tax benefits announced both Federally and Provincially to help Canadians with the rising cost of living – updates.

February 14, 2023|Updated: October 17, 2024

Both the Federal and Provincial governments have announced new tax benefits to help Canadians cope with the rising cost of living. In all instances, Canadians will have to have filed their 2021 tax return.

A breakdown of the affordability tax credits can be found below. They can also be easily accessed by clicking the links below:

Federal Affordability Benefits

British Columbia Affordability Measures

Saskatchewan Affordability Tax Credit

PEI Inflationary Support Payment

Quebec New Refundable Cost of Living Tax Credit

Manitoba Family Affordability Benefit and Carbon Tax Relief Fund

Alberta Affordability Payments

Newfoundland & Labrador One-time Cost of Living Tax Credit

New Federal Affordability Benefits.

A temporary doubling of the GST/HST Credit in a lump sum.

The amounts used to calculate the GST/HST Credit will be temporarily doubled for a period of six months.

But instead of being added to the quarterly instalments people typically receive, the additional amount was be paid in a lump-sum, near the end of 2022.

The amounts that recipients received if they were fully eligible are shown in the table below.

Not everyone receives a GST/HST credit payment. People must earn under a certain threshold to receive this, and that’s still the case with the double-up payment.

	Regular quarterly payments for July & October 2022 and January & April 2023	Additional Lump-Sum Payment in fall of 2022
Basic Credit	$76.50	$153
Amount for an Eligible Dependant	$76.50	$153
Qualified Child	$40.25	$80.50
Single Supplement	$40.25	$80.50

Taxpayers didn’t need to apply for the additional payment but did need to file a 2021 tax return in order to get both their regular GST/HST cheque and the additional supplement.

One-time top-up of the Canada Housing Benefit.

A one-time top-up to the Canada Housing Benefit program will provide a tax-free payment of $500 for low-income renters with adjusted net income of less than $20,000 for individuals or $35,000 for families.

Taxpayers need to have filed a 2021 tax return but won’t receive the payment automatically. They will need to apply to the CRA and attest that they are paying at least 30% of their adjusted net income on shelter and paying rent for their own primary residence in Canada.

To confirm eligibility, they’ll also need to provide:

The address of the rental property,
The amount of rent they paid in 2022
The landlord’s contact information
Consent to the CRA verifying their information

The application is available here and are open until March 31, 2023.

The payment will not affect eligibility for other federal income-tested benefits, such as the Canada Workers Benefit, the Canada Child Benefit, the GST/HST Credit, and the Guaranteed Income Supplement.

Canada Dental Benefit.

The Canada Dental Benefit will provide payments of up to $650 per child for children under 12 to cover anticipated dental expenses. The payments are contingent on the family’s adjusted net income. Per child, that equals:

$650 for income under $70,000
$390 for income between $70,000-$79,999
$260 for income between $80,000-$89,999

Parents or guardians of eligible children will need to prove that:

Their child does not have access to private dental care coverage
They will incur dental care expenses for which they will use the benefit
They understand that they may need to provide documentation later to verify the expenses incurred

Those eligible can apply here.

British Columbia Affordability Measures.

The BC government is providing a one-time increase to the Climate Action tax credit in October 2022, and an increase to the BC Family Benefit for the first three months of 2023. More details on the increases are below.

BC Climate Action Credit.

For October only, the Climate Action Tax Credit will be increased by a maximum additional $164 per adult and $41 per child. This means a family of two adults and two children can receive up to an additional $410.

	Regular quarterly payments for July & October 2022 and January & April 2023	October payment with increase factored in
Single	$193.50	$357.50
Spouse or common-law partner	$193.50	$357.50
First child in a single parent family	$193.50	$357.50
All other children	$56.50	$97.50

The thresholds for receiving the credit remain the same – taxpayers start to get phased out at $36,901 for singles with no children and $42,051 for families (including single parent families), except the phase-out rates have been reduced so that more people will receive the October payment.

	Thresholds at which the credit is fully phased out for regular quarterly payments	Thresholds at which the credit is fully phased out for the enhanced October payment
Single	$46,576	$79,376
Married or common-law with no children	$62,401	$128,001
Married or common-law with one child	$65,226	$139,026
Married or common-law with two children	$68,051	$150,051
Married or common-law with three children	$70,876	$161,076
Single parent with one child	$62,401	$128,001
Single parent with two children	$65,226	$139,026
Single parent with three children	$68,051	$150,051

BC Family Benefit.

Formally known as the BC Child Opportunity Benefit, the BC Family Benefit will increase by an additional $58.33 per child for January, February, and March 2023.
In order to get the regular payments of the Climate Action Tax Credit and the BC Family Benefit, taxpayers need to have filed a 2021 tax return. The federal government also recently created new and increased benefits, so filing means not only the BC refundable credits but also some increases to federal benefits like GST/HST.

	Regular quarterly payments for July 2022 to June 2023 benefit period	Monthly payments for January to March 2023
First child	$133.33	$191.66
Second child	$83.33	$141.67
Third child	$66.67	$125.00

Saskatchewan Affordability Tax Credit.

The Saskatchewan government is giving its residents a $500 tax credit, which will be paid this fall to all Saskatchewan residents who will be 18 years or older on December 31, 2022, and who have filed a 2021 tax return as a resident of the province. This is part of a four-point plan to assist residents of that province with the rising cost of living. The tax credit is not income-based and is per individual (as in, it’s not just one per household, but rather a cheque for everyone within the house who qualifies), so most of the province can rejoice in this great news!

Their 2021 tax return must be filed by October 31, 2022, in order to get this credit.

The plan includes other components besides the $500 payment:

The removal of fitness and gym memberships and some recreational activities from the planned PST expansion on admissions, entertainment, and recreation, which will take effect in October.
Extension of the temporary 0% small business tax rate retroactive to July 1, 2022 and delaying the restoration of the rate to 2.0% to July 1, 2024. It was originally set to increase back to 1% on July 1.
The retirement of up to $1 billion in operating debt made possible by the higher-than-projected surplus.

Taxpayers who have moved should contact the SATC administration centre to determine their eligibility.

PEI Inflationary Support Payment.

In November, the PEI government announced a one-time inflationary support payment to assist residents of PEI with the rising costs of living. It will be paid with the January 5, 2023 payment of the PEI Sales Tax Credit and will require eligible taxpayers to have filed a 2021 income tax return in order to receive it.

The payment will consist of:

$500 for single taxpayers with adjusted net income of up to $100,000, with taxpayers with adjusted net income between $100,000 and approximately $125,000 receiving a partial payment; and
$1,000 for couples and single parents with adjusted family net income of up to $100,000, with taxpayers with adjusted net income between $100,000 and $145,000 receiving a partial payment.

The eligibility requirements for the PEI Sales Tax Credit are the same as those for the GST/HST Credit. Taxpayers will therefore have to be at least 19 at the beginning of January in order to receive the inflationary support payment, unless they have a spouse or common-law partner or are the parent of a child who lived with them.

Québec New Refundable Cost of Living Tax Credit.

The Québec government announced the payment of a new refundable credit to help taxpayers deal with the rising cost of living. The credit will be paid automatically at the beginning of December 2022 if the 2021 return was filed by November 9, 2022. If the 2021 return is filed after November 9, 2022 but before June 30, 2023, the credit will be paid when the return is processed by Revenu Québec.

The credit depends on a person’s net income for 2021, which can be found on the Québec return line 275.

Net Income for 2021	Amount of the credit
$50,000 or less	$600
$50,000 to $54,000	$400 to $599.99 (reduced by 5% of your income over $50,000)
$54,000 to $100,000	$400
$100,000 to $104,000	$0 to $399.99 (reduced by 10% of your income over $100,000)

There are some conditions to receiving the credit. You must:

Be a resident of Québec as of December 31, 2021,
Be at least 18 years of age on December 31, 2022,
File your 2021 Québec tax return by June 30, 2023,
Have a 2021 net income of less than $104,000.

It’s also important to note that taxpayers who died before September 1, 2022 are not eligible.

Manitoba Family Affordability Benefit.

Though this technically happened in September, it’s worth sharing the news now that the Manitoba government has also announced the introduction of a new Family Affordability Benefit to help low-income seniors and families with children to cope with the rising cost of living. It will consist of:

A payment of $250 for the first child under 18 and $200 for each additional child for families with net income less than $175,000 as reported on their 2021 tax return; and
A payment of $300 for seniors with family income less than $40,000 who claimed the Education Property Tax Credit for Seniors on their 2021 income tax return.

Cheques will start to be mailed out in late September to the address indicated on the taxpayer’s 2021 tax return. Clients who have changed mailing addresses since then will need to update their information with the Manitoba Government. Manitobans have until December 31, 2022 to file their 2021 tax returns in order to receive this benefit. Failure to do so will result in ineligibility for this benefit, so get that done soon!

Manitoba Carbon Tax Relief Fund Payments.

The Manitoba government recently announced a second round of payments to help deal with the affordability crisis, The Carbon Tax Relief fund will assist with lowering the impact of rising winter costs.

The first round of payments that went out in the fall were for families with children and seniors, this second round will be available to all Manitoban's who meet the income eligibility. It will consist of:

$225 for single taxpayers
$375 for couples.

In order to be eligible, you must have filed your 2021 Manitoba income tax return by December 31, 2022. Those who filed their 2021 income tax return after December 31, 2022 are not be eligible

There is no need to apply for these payments. They will be mailed out starting the last week of January.

An additional FYI, if you have changed their address since filing their 2021 tax return must complete an online form before 9 a.m. on Friday, February 10, 2023 at this link: Carbon Tax Relief Fund Address Change | Finance | Province of Manitoba.

Alberta Affordability Payments.

As part of the Affordability Action Plan, Alberta introduced the Affordability Payments Program. Applications opened on January 18, 2023, and will provide some relief for families, seniors and those receiving monthly benefits through AISH, Income Support, Alberta Seniors Benefit or services through Persons with Developmental Disabilities. In order to apply, you need to obtain an Alberta.ca account (MyAlberta Digital ID), and then fill out the application by June 30, 2023.

We’ve included information on who is eligible to apply in each category.

Seniors.

Seniors who meet the following conditions will get $100 per month for six months:

You are 65 or older by June 30, 2023.
Your adjusted family net income as reported on their 2021 tax return is under $180,000.
You were resident of Alberta as of November 30, 2022, and remain so on the first day of each month between January and June.
You have not been incarcerated for 90 days or more during the January to June 2023 period.

Please note that if you receive the Alberta Seniors Benefit, AISH or Income Support, you do not need to apply as you fall into the third category and will get payments automatically.

Families or caregivers with children under 18.

Families or caregivers with children who meet the following conditions will get $100 per month for each child under 18.

You are the parent or guardian of dependent children who are under 18 between January 18 and June 30, 2023.
Your adjusted family net income as reported on your 2021 tax return is under $180,000.
You were residents of Alberta as of November 30, 2022, and remain so on the first day of each month between January and June.
You have not been incarcerated for 90 days or more during the January to June 2023 period.

Parents who share custody 40% to 60% of the time can each apply to get $50 per month for the child.

You are not eligible if:

You do not have custody at least 40 to 60% of the time.
If your children are in care.

Albertans in special programs.

If you are on Assured Income for the Severely Handicapped (AISH), Persons with Developmental Disabilities (PDD) and Income Support between January 18, and June 30, 2023, you will also get six monthly payments of $100 for a total of $600.

Your payments will be issued automatically the same way as you receive your monthly benefit. You don’t need to apply unless you also have children under 18, in which case you will be entitled to $100 per month under the families or caregivers with children under 18 section of the action plan.

As in the case of the first two categories, you must have been resident in Alberta as of November 30, 2022, and remain so on the first day of each month between January and June 2023 to be eligible for each month’s payment.

Newfoundland & Labrador One-time Cost of Living Tax Credit.

The Newfoundland & Labrador government will be giving a one-time payment of up to $500 to all residents of the province who are 18 years or older as of December 31, 2022 who filed a 2021 tax return with an adjusted net income of $125,000 or less. Those with adjusted net income of less than $100,000 will receive $500, and those with adjusted net income between $100,000 and $125,000 will receive a partial payment between $250 and $500.

There is no need to apply for this credit, and cheques will be mailed out before the end of 2022. Residents have until December 31, 2022 to file their 2021 tax return or they will miss out on the one-time benefit.

H&R Block Tax Experts are always here to help you figure out how tax changes will affect your return and look forward to helping you. Choose from one of four convenient ways to file: File in an Office, Drop-off at an Office, Remote Tax Expert, or Do It Yourself Tax Software.