In an effort to combat the rising cost of living and provide additional support to Canadians facing financial hardship, the Canadian government is preparing to issue a one-time $900 Cost-of-Living Payment through the Canada Revenue Agency (CRA) in January 2026. This initiative is part of a broader package aimed at targeting inflation-driven expenses and supporting lower-income individuals and families as they navigate the post-pandemic economic recovery. The CRA will serve as the primary agency responsible for delivering this benefit to eligible recipients across the country.
As inflation continues to fluctuate and the affordability crisis deepens in many provinces, the federal government recognizes the urgent need to provide direct, non-taxable financial aid to vulnerable groups. Designed as a top-up measure complementing existing benefits such as the GST/HST credit and Canada Workers Benefit, this $900 payment is set to bring much-needed relief to nearly nine million low- and modest-income Canadians early next year. Here’s everything you need to know about eligibility, payment timelines, and how to check your status.
Key details of the CRA $900 Cost-of-Living Payment
| Item | Details |
|---|---|
| Payment Amount | $900 (non-taxable, one-time) |
| Payment Delivery | Canada Revenue Agency (CRA) |
| Expected Date | January 2026 (exact day to be confirmed) |
| Eligibility Based On | 2024 Tax Return (filed by the deadline) |
| Who Qualifies | Low- and modest-income individuals and families |
| Application Required | No (automated through CRA if tax return filed) |
What changed this year
The $900 Cost-of-Living Payment represents a significant increase from previous relief measures such as the $500 top-up to the Canada Housing Benefit and earlier climate action incentive supplements. Unlike prior programs, this benefit is broader in scope and is designed specifically for those hardest hit by inflation. While inflation has eased slightly in 2025, the cost of essential goods and services—particularly housing, food, and transportation—remain substantially elevated compared to pre-pandemic levels. This relief is seen not only as a reactive measure but also as a strategic cushion to prevent long-term financial instability among vulnerable households.
One major change is the use of the 2024 tax return to assess eligibility for the 2026 payment. This ensures that recent income data is used to determine need, avoiding outdated assessments based on pandemic-era earnings.
Who qualifies and why it matters
Eligibility for the $900 payment depends primarily on adjusted family net income reported in the 2024 tax year. Individuals must file their 2024 personal income tax return by the deadline to be automatically assessed for the payment. While specific income thresholds may vary based on family size and other benefits received, here are the key eligibility groups:
- Single individuals earning less than approximately $49,200
- Couples or families with combined income less than $58,500
- Recipients of the Goods and Services Tax (GST) credit
- Recipients of the Canada Workers Benefit
The CRA will determine eligibility automatically through income tax data. No separate application is required. This approach is expected to streamline distribution and ensure timely access to funds without bureaucratic delays.
“Putting money directly in the pockets of Canadians who are struggling is the most efficient way to fight short-term financial instability.”
— Emily Cho, Senior Economist, Canadian Policy Centre
How to apply step-by-step
Though no direct application is necessary, there are critical steps Canadians must take to ensure they receive the $900 payment:
- File your 2024 tax return on time – This is the primary action required. The CRA uses tax return data to evaluate income, family structure, and benefit eligibility.
- Set up or update CRA My Account – Ensure your contact information and direct deposit details are current to avoid delivery problems.
- Check benefit eligibility – Review your CRA My Account after filing to verify if you receive the GST/HST credit or Canada Workers Benefit, as these signify income levels likely to qualify for the one-time payment.
- Use CRA’s benefit calculators – Once available, use CRA’s online tools to estimate your likelihood of payment eligibility.
“There’s no separate form to fill out for the special payment—it’s all tied to your income tax return. If you don’t file, you won’t see the benefit.”
— Jordan Kingsley, Tax Advisor, CRA Liaison Program
How and when the money will arrive
The CRA will distribute the $900 payment starting in January 2026. The exact date has not yet been confirmed, but payments are expected to arrive in the second or third week of January. Eligible recipients with direct deposit setup will receive the funds directly to their bank accounts, while those without direct deposit may receive a cheque by mail.
Payments will be processed automatically—no need to confirm eligibility unless you miss your payment window. In that case, Canadians will have the opportunity to contact the CRA for a review or retroactive benefit assessment based on timely tax filing.
Winners and losers of the January 2026 Cost-of-Living Payment
| Winners | Losers |
|---|---|
| Low-income individuals and families | High-income earners above eligibility thresholds |
| Recipients of GST credit or CWB | Non-tax filers who miss deadline |
| Seniors with modest pension income | Canadians not enrolled for direct deposit (may face delays) |
Impact on inflation and government outlook
Critics have raised concerns about whether direct cash transfers will add to inflationary pressures. However, recent analysis from federal economists suggests that short-term support programs like this have a minimal impact on overall price levels, especially when targeted to low-income groups who are more likely to spend on essential needs. The fiscal cost of this one-time payment is expected to be offset in part by higher-than-expected GDP growth and tax revenue in 2025.
“We’re prioritizing economic fairness. Even as inflation ticks down, affordability for everyday essentials hasn’t returned to normal for millions of Canadians.”
— Gianna Moore, Spokesperson, Department of Finance Canada
Why it pays to file even if you have no income
Many Canadians mistakenly believe there’s no reason to file a tax return if they earn little or no income. However, this mindset may result in missed benefits—including this $900 relief payment. Tax returns are the cornerstone of Canada’s income-based support programs. Filing, even with zero or low earnings, maximizes access to a broad range of credits and rebates beyond just the Cost-of-Living Payment.
“Essentially, your tax return is your pass to Canada’s entire social safety net. If you don’t file, you’re opting out, knowingly or not.”
— Danielle White, Advocacy Coordinator, Canadian Income Support Alliance
Final thoughts and what to expect
The January 2026 $900 CRA Cost-of-Living Payment is a proactive step in helping Canadians manage ongoing affordability challenges. It targets those who need the most support, using a system that minimizes barriers and leverages the CRA’s existing infrastructure. As inflation remains persistent in some sectors and wage growth plateaus, direct government assistance continues to be a lifeline for millions.
Filing taxes, maintaining updated CRA account information, and staying informed about upcoming benefit announcements are the most effective strategies to ensure Canadians receive the aid they’re entitled to. While the headlines often focus on national economic indicators, it’s these personal lifelines that make the biggest difference in day-to-day lives.
Frequently Asked Questions (FAQs)
Will everyone get the $900 Cost-of-Living Payment?
No, only individuals and families with low-to-moderate income will qualify, based on their 2024 tax return. Canada Revenue Agency will determine eligibility automatically.
Do I have to apply for this $900 payment?
No application is needed. CRA will issue payments automatically to eligible individuals who filed their 2024 taxes on time.
When will the $900 payment be sent out?
The payment is expected to begin delivery in January 2026. The exact issue date will be confirmed closer to that time.
Is the $900 taxable income?
No, this payment is non-taxable and does not need to be reported on your tax return for 2026.
What if I don’t receive my payment?
If you’re eligible and don’t receive the payment by the end of January 2026, you can contact CRA for assistance or re-evaluation of your file.
How can I check if I qualify?
The easiest way is to log into your CRA My Account after tax season and check your benefit notices and eligibility status.