Some Canadians are seeing bigger government benefit deposits this week. Two income-tested benefits — the Advanced Canada Workers Benefit and the Ontario Trillium Benefit — increased starting with the July 2026 benefit year, thanks to the Canada Revenue Agency’s annual inflation adjustment.
Quick Answer
The CRA increased benefit and credit amounts by 2% for the 2026 benefit year through a process called indexation, tied to the Consumer Price Index. Eligible Canadians started seeing the higher Advanced Canada Workers Benefit and Ontario Trillium Benefit payments on Friday, July 10, 2026.
Why Benefits Went Up: Indexation, Explained
Since 2018, the CRA has used indexation to adjust benefit and credit payments each year so they keep pace with inflation and the cost of living. The maximum benefit amounts and the income thresholds that determine eligibility are both indexed annually based on the Consumer Price Index.
This year’s increase is smaller than last year’s. The 2026 indexation adjustment works out to 2%, compared with a 2.7% increase in 2025. The CRA applied the updated, higher payment amounts for certain income-tested benefits starting July 1, 2026 — the start of the new benefit year.
Advanced Canada Workers Benefit (ACWB)
The Advanced Canada Workers Benefit is a refundable tax credit aimed at helping low-income individuals and families. It has two components: a basic amount and a disability supplement.
| ACWB Component | 2025 Maximum | 2026 Maximum | Increase |
|---|---|---|---|
| Single, no children | $1,633 | $1,665 | +$32 |
| Families | $2,813 | $2,869 | +$56 |
| Disability supplement | $843 | $860 | +$17 |
Ontario Trillium Benefit (OTB)
The Ontario Trillium Benefit combines three separate credits into one monthly payment: the Ontario Energy and Property Tax Credit, the Northern Ontario Energy Credit, and the Ontario Sales Tax Credit. All three increased for the 2026 benefit year.
Ontario Energy and Property Tax Credit
| Recipient group | 2025 Maximum | 2026 Maximum |
|---|---|---|
| Ages 18–64 | $1,283 | $1,307 |
| Ages 65+ | $1,461 | $1,488 |
| On a reserve or in a public long-term care home | $285 | $290 |
| Lived in a designated college/university/private school residence in 2025 | — | $25 (flat) |
Northern Ontario Energy Credit
| Household type | 2025 Maximum | 2026 Maximum |
|---|---|---|
| Single | $185 | $189 |
| Families | $285 | $290 |
Ontario Sales Tax Credit
The maximum credit increased from $371 to $378. You may also be eligible for an additional credit of up to $378 for a spouse or common-law partner, plus each dependent child under age 19 as of the first of the payment month. This particular credit does not affect GST/HST credit payments, which are calculated separately.
Who Actually Sees the Increase
These are income-tested benefits, so not every Canadian receives the maximum amount — your actual payment depends on your income, family size, age, and residency situation. Because the increases are built into the existing ACWB and OTB payment schedules, eligible recipients don’t need to apply separately; the higher amount is simply reflected in the July 10 payment (and going forward) if you already qualify.
It’s also worth noting the Ontario Trillium Benefit is, as the name suggests, specific to Ontario residents — it combines provincial energy and sales tax relief that other provinces structure differently through their own credits. The Advanced Canada Workers Benefit, by contrast, is a federal program available to eligible low-income workers across Canada regardless of province.
Other CRA Benefits That Get Indexed the Same Way
The ACWB and OTB aren’t the only payments adjusted through the CRA’s annual indexation process — it’s worth knowing this is a broader mechanism, not a one-off bump. Other commonly known federal benefits that are typically indexed to inflation on their own schedules include the Canada Child Benefit (CCB) and the GST/HST credit. If you receive either of those, it’s reasonable to expect a similar inflation-linked adjustment reflected in your benefit year, though the specific increase amount and timing for those programs is set separately from the ACWB/OTB update covered here — check your CRA My Account for the exact figures that apply to your household.
How Benefit Years Work
One detail that trips people up: the “2026 benefit year” for these programs doesn’t align with the calendar year or even the tax filing deadline. It’s calculated based on your prior year’s tax return and runs from July of one year through June of the next. That’s why the increased amounts took effect specifically on July 1, 2026, and why the first higher payment landed in the July 10 payment cycle rather than at the start of the calendar year.
What If Your Payment Didn’t Go Up
If you were expecting an increase and don’t see one, a few common explanations account for most cases: your income may have risen enough to push you past the phase-out threshold for that benefit, your household circumstances (marital status, number of dependents, or age bracket) may have changed since your last return, or you may not have filed a recent enough tax return for the CRA to calculate an updated amount — both the ACWB and OTB rely on your most recent filed return to determine eligibility and payment size. Filing your taxes promptly each year, even with little or no income, is generally what keeps these payments flowing without interruption.
FAQ
Do I need to do anything to get the increased payment?
No. If you’re already receiving the Advanced Canada Workers Benefit or Ontario Trillium Benefit, the higher amount is applied automatically starting with the July 2026 benefit year.
Why did my payment only go up slightly?
The 2026 indexation adjustment is 2%, smaller than the 2.7% increase applied in 2025 — and both the ACWB and OTB are income-tested, so your actual increase depends on where your income falls relative to the benefit’s thresholds.
Are these the only benefits affected by indexation?
No — the CRA applies indexation broadly to income-tested federal and provincial benefits and credits, not just the ACWB and OTB. These two happened to see payment bumps land in the same week.
Where can I check my exact payment amount?
Your CRA My Account portal shows your specific benefit and credit amounts based on your latest tax return and household information.
What does “indexation” actually mean in plain terms?
It’s the CRA’s yearly process of adjusting benefit amounts and income thresholds upward to keep pace with inflation, using the Consumer Price Index as the measuring stick — so a benefit that stayed flat in dollar terms year after year would effectively shrink in real purchasing power, and indexation is meant to prevent that.
Is the Advanced Canada Workers Benefit the same as the Canada Workers Benefit?
The ACWB is essentially an advance-payment option for the Canada Workers Benefit (CWB) — instead of waiting to receive the full CWB as a lump sum after filing your tax return, eligible workers can get a portion paid out in advance installments throughout the year, which is what increased this week.
Do I need to reapply every year to keep receiving the ACWB or OTB?
No separate application is typically needed each year as long as you keep filing your annual tax return on time — the CRA recalculates your eligibility and payment amount automatically based on that return.