Several federal changes affecting household budgets took effect in Canada this October. Seniors received a slightly larger Old Age Security (OAS) payment on October 28, lower-income families received a Canada Groceries and Essentials Benefit payment, and the Canada Revenue Agency (CRA) set new interest rates for the last quarter of 2026. Here is a clear summary of what changed, who is affected and what to do next.
Old Age Security rises 1.4%
OAS is adjusted every quarter to reflect changes in the cost of living. For the October to December 2026 period, payments rose by 1.4%. The October payment was issued on October 28.
- Ages 65 to 74: maximum monthly payment up from $751.97 to $762.50 (+$10.53).
- Ages 75 and older: maximum monthly payment up from $827.17 to $838.75 (+$11.58).
Your actual amount depends on how long you have lived in Canada after age 18 and on your income, since higher-income seniors repay part of their OAS. You can confirm eligibility and payment dates on the Government of Canada OAS page.
Canada Groceries and Essentials Benefit payment
A quarterly, tax-free Canada Groceries and Essentials Benefit (CGEB) payment was issued on October 5. Eligibility and amounts are based on adjusted family net income from the 2025 tax return. Reported annual maximums are:
- $679 for a single individual
- $890 for a married or common-law couple
- $234 per eligible child under 19
The key point: you must file your tax return to receive it, even if you had little or no income. If a payment did not arrive, check your account in CRA My Account before calling. To stretch your grocery budget further, our guide on how to read food labels in Canada helps you compare products quickly.
New CRA interest rates for October to December
The CRA sets prescribed interest rates every quarter. From October 1 to December 31, 2026:
- 7% on overdue taxes, Canada Pension Plan contributions and Employment Insurance premiums.
- 5% paid on overpayments to individual (non-corporate) taxpayers.
- 3% for taxable benefits on interest-free or low-interest loans to employees and shareholders.
Interest on unpaid tax compounds daily, so even a small balance grows. If you owe the CRA, paying sooner or setting up a payment arrangement is usually the cheapest option. Details are available on the Canada Revenue Agency website.
Carbon rebate: a proposed filing deadline
The consumer carbon rebate is no longer paid out, but people who have not filed past tax returns may still be owed money. A federal bill proposes October 30, 2026 as the deadline to file outstanding returns to claim any remaining Canada Carbon Rebate amounts. Depending on the province, a family of four could be owed up to around $1,800. Because the deadline was still only proposed at the time of writing, anyone with unfiled returns should file as soon as possible rather than wait for confirmation.
Other October changes
Pharmacy rules for controlled substances
Since October 1, pharmacy technicians can take on more tasks involving controlled substances, and pharmacists can extend or transfer certain controlled-substance prescriptions for up to two years from the date received. For patients, this can mean fewer trips back to the doctor for renewals.
Drug and natural health product safety reporting
Health Canada aligned manufacturers’ safety reporting rules with international standards, including annual summary reports for drugs and natural health products.
New cigarette health warnings
By October 31, retailers must sell only tobacco packages that meet updated rules, including a new health message on the upper side flap of cigarette packages.
Watch out for benefit scams
Every time benefits change, scammers send texts and emails pretending to be the CRA or Service Canada, promising a “rebate” if you click a link. The government will not ask you to claim a payment through a text message link. Learn the warning signs in our guide on how to recognize phishing emails and texts, and if you shop online for the holidays, review how to spot online shopping scams. Planning a bigger purchase? Our explainer on the EV Affordability Program covers federal help for electric vehicles.
FAQ
How much did OAS increase in October 2026?
OAS rose 1.4%. The maximum is now $762.50 a month for ages 65 to 74 and $838.75 for ages 75 and older.
Do I need to apply for the groceries benefit?
No separate application is usually needed. Filing your income tax return is what makes you eligible.
What interest does the CRA charge on overdue taxes now?
From October 1 to December 31, 2026, the rate is 7%, compounded daily.