Carney budget targets grocery bills and caregiver costs with new cash infusions
The 2026 federal budget proposes a one-time boost to the Canada Groceries and Essentials Benefit and makes the caregiver credit fully refundable for 585,000 workers.
By Paula Delgado ·
Prime Minister Mark Carney released his second federal budget on Thursday, introducing a one-time 50 per cent increase to the Canada Groceries and Essentials Benefit for the 2026-27 fiscal year. The supplement is scheduled for delivery in early 2027.
The federal government stated that the boost would provide up to $339 to a single person without children. For a couple with two children, the additional payment would reach up to $679. This measure targets low and moderate-income families who already receive quarterly payments under the existing benefit.
The budget also changes the structure of the Canada Caregiver Credit to assist caregivers with incomes too low to pay tax. The government plans to make this credit fully refundable for 585,000 eligible individuals. These caregivers would receive up to $1,260 annually, ensuring the benefit reaches those currently excluded by the non-refundable status of the credit.
In a social media post, Carney announced that Canadian artists would not pay tax on up to $45,000 of income derived from creative work. He described the move as backing artists who tell the country's stories. However, the budget document provided no specific definition of what qualifies as an artist or which creative fields are included.
Public reaction to the artist exemption quickly questioned the scope of the definition. Christine Lindberg asked whether the category included performing and visual artists. Dave Healy noted he was a carpenter who viewed his work as art and planned to discuss the exemption with his accountant. Gerald St. John joked that Subway employees were sandwich artists and might qualify.
Starting with the 2026 tax year, individuals with celiac disease may claim an optional flat $1,000 under the Medical Expense Tax Credit. This amount is designed to cover the higher cost of gluten-free food without requiring taxpayers to calculate and document individual expenses.
The budget also reaffirmed existing affordability measures. It reiterated the allowance for 30-year mortgage terms if at least one borrower is a first-time buyer or the home is newly built. The limit for optional mortgage insurance remains raised at $1.5 million, up from the previous $1 million ceiling. CMHC mortgage loan insurance protects lenders if borrowers stop paying, not the buyers themselves.
