As 2026 draws closer, news about a potential new government deposit—referred to as the **GST 740 Deposit**—is stirring curiosity and speculation among Canadians. While details are still coming together, many are wondering who qualifies, how much they will receive, and what this deposit actually represents. Designed to offset the impact of rising living costs and support lower-income individuals and families, the GST 740 Deposit could become an important financial relief program.
Much like previous GST/HST credit enhancements, the 2026 initiative hints at a targeted credit or one-time payment aimed at amplifying benefits tied to the Goods and Services Tax. Understanding how this deposit will work requires a deep dive into government policy shifts, income requirements, and anticipated payment timelines.
GST 740 Deposit: Quick Overview
| Topic | Details |
|---|---|
| Deposit Name | GST 740 Deposit |
| Estimated Release Date | February 2026 |
| Primary Purpose | Offset cost of living for lower-income Canadians |
| Eligibility Basis | Annual net income and family size |
| Administered By | Canada Revenue Agency (CRA) |
| Payment Method | Direct deposit or mailed cheque |
What changed this year
In recent years, cost-of-living pressures have intensified due to inflation, rising housing costs, and global economic disruptions. The federal government has responded through a series of targeted financial support measures—including top-ups to the Canada Workers Benefit, Climate Action Incentive, and GST/HST credits. In 2026, it appears a new evolution of this support is on the way, unofficially labeled the **GST 740 Deposit** after an internal program reference number used by the CRA.
This upcoming credit payment isn’t just another periodic benefit. It’s expected to offer targeted relief for a wider range of Canadians, particularly those whose household income falls below a certain threshold. While full confirmation is pending final budgetary legislation, the groundwork is being laid for distribution as early as February 2026.
Who qualifies and why it matters
The eligibility criteria for receiving the GST 740 Deposit are expected to align closely with the standard GST/HST credit framework. That means applicants must meet the following basic requirements:
- Be a resident of Canada for income tax purposes
- Be at least 19 years old, or have (or previously had) a spouse/common-law partner
- Have an individual or family net income below a certain threshold
Additional qualifiers could include the number of dependent children, marital status, and whether or not you already receive other benefits like the Canada Child Benefit or Working Income Tax Benefit. The **benefit amount is expected to be prorated** based on household income levels.
We anticipate the GST 740 will use a sliding scale formula that’s already in place for the GST/HST credit. It’s meant to capture low- to moderate-income households without creating overlap or redundancy.
— Michael Tran, CRA Program Analyst
How the amount will be calculated
Although exact dollar amounts have not been finalized, analysts expect the GST 740 Deposit to range between **$400 to $750 per eligible adult**, depending on several variables. Additional amounts may be provided per dependent child. As with the current GST/HST credit, it is likely calculated automatically based on your previous year’s tax return (i.e., your 2025 return for the February 2026 payment).
Some possible breakdowns include:
- Single adult earning under $40,000: Estimated $640 deposit
- Couple with two children earning under $55,000: Estimated $740 deposit
This amount may be paid as a one-time lump sum, similar to the past Grocery Rebate or top-ups. Exact timing and calculations will be confirmed once CRA releases the official notice.
How to apply step-by-step
For most Canadians, there’s nothing you need to do to apply for the GST 740 Deposit—if you’re eligible, the Canada Revenue Agency will calculate it automatically when you file your 2025 income tax return. However, to ensure you receive it without delays, follow these steps:
- File your 2025 taxes on time — Ensure they are received by the CRA before the April 30, 2026 deadline.
- Set up direct deposit — Update or register your banking info with the CRA to receive payments faster.
- Update family status — Notify the CRA of changes such as marriage, divorce, or new dependents.
- Monitor CRA My Account — Sign in to track eligibility and payment notices beginning January 2026.
CRA typically starts assessing eligibility for GST and other benefits in late fall or early winter, based on income data submitted during tax season. If you’re newly arrived in Canada or have limited recent income history, you may be required to submit additional forms.
Key differences from past GST benefits
The GST 740 Deposit, while built on the same infrastructure as the current GST/HST credit, will differ in key ways:
- **Possibly a one-time top-up** rather than a quarterly payment
- **Higher maximum amounts** projected due to elevated inflation and cost of living metrics
- **Broader coverage**—including more households just above provincial low-income thresholds
These changes reflect efforts to reduce income inequality and lessen the impact of inflation. Similar moves were seen in 2023 and 2024 with special one-time benefit enhancements designed to support low- and modest-income renters and families
Winners and losers of the GST 740 Deposit
| Winners | Losers |
|---|---|
| Low- to moderate-income families | High-income earners above credit thresholds |
| New Canadians with correct documentation | Non-filers or those with missed tax returns |
| Couples with dependents under $55,000 income | Couples over $80,000 income range |
| Seniors with low taxable income | Temporary residents without valid CRA profiles |
Expert forecasts on future credits
Experts believe that the GST 740 Deposit is part of a broader philosophy shift toward **targeted economic supports** versus universal benefits. It follows a global trend where governments are reassessing delivery models for social credits and subsidies in a high-inflation, post-pandemic world.
This is a trial balloon for bigger things. If it works as planned, it could reshape how income supports are distributed for families and seniors in Canada.
— Denise McLeod, Policy Researcher
Looking beyond 2026, the federal government may roll aspects of this deposit into a new **annual credit** or merge it with planned updates to existing GST/HST credits. The focus will remain on automatic, direct-to-consumer benefits based on verified tax data.
Common questions about the GST 740 Deposit
What is the GST 740 Deposit really?
It’s a proposed government credit payment, modeled after the GST/HST rebate, designed to assist low- and middle-income Canadians with cost-of-living support, likely launching in February 2026.
Do I need to apply for the GST 740 Deposit?
No, most eligible recipients will be assessed automatically once they file their 2025 income taxes. The CRA uses tax data to determine eligibility and will deposit funds to your account if you qualify.
How much will I get from the GST 740 Deposit?
Amounts are projected between $400 and $750 per adult, with additional funds for dependents. Exact figures depend on your net income and household composition.
When will the GST 740 be paid out?
Current timelines suggest the payment will be distributed in late February 2026, either through direct deposit or by mail.
What if I moved or changed my banking info?
Log into your CRA My Account and update your mailing address and banking details. This ensures timely receipt of all government payments, including the GST 740 Deposit.
Can newcomers to Canada receive this benefit?
Yes, provided they have filed a return and meet other CRA eligibility requirements, including residency and documented income history.
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