Canada’s GST/HST Credit Set To Rise In 2025 – Check Your Eligibility?

In response to rising living costs, the Canadian government has announced a 2.7% increase in the Goods and Services Tax/Harmonized Sales Tax (GST/HST) credit, effective July 2025.

This adjustment aims to provide financial relief to low- and modest-income individuals and families by offsetting the sales taxes they incur on essential purchases.

Understanding the GST/HST Credit

The GST/HST credit is a tax-free quarterly payment designed to assist eligible Canadians in managing the GST or HST they pay.

Administered by the Canada Revenue Agency (CRA), the credit amount is recalculated annually based on family net income and household size to ensure targeted support.

Details of the 2025 Increase

Starting in July 2025, the GST/HST credit will reflect a 2.7% increase compared to 2024. While this is a smaller adjustment than the previous year’s 4.7% rise, it continues to offer meaningful assistance to those in need.

Revised Payment Amounts

The enhanced payments, based on the 2024 tax return, are as follows:

Recipient Category	Annual Maximum Amount	Quarterly Payment
Single Individual	$349	$87.25
Per Child Under 19	$184	$46
Married/Common-Law Couple	$698 (combined)	$174.50
Single Supplement	$184	$46

Example: A family of four (two parents and two children) could receive up to $1,066 annually, equating to $266.50 per quarter.

Income Thresholds for Elig ibility

Eligibility and payment amounts are determined by adjusted family net income (AFNI). For 2025, the thresholds have increased by 2.7%:

• Phase-in Threshold for Single Supplement: $11,337
• Family Net Income Where Credit Begins to Phase Out: $45,521

Payments decrease gradually for those exceeding the phase-out threshold and cease beyond the maximum limit.

Eligibility Criteria

To qualify for the GST/HST credit, individuals must:

• Be a Canadian resident for tax purposes in the month before and at the start of the payment month.
• Be at least 19 years old, or if under 19, meet one of the following:
  • Have (or had) a spouse or common-law partner.
  • Be (or have been) a parent living with their child.

Newcomers to Canada, including permanent residents, refugees, and temporary residents (such as international students and work permit holders), are also eligible but must apply manually using the appropriate forms.

Application Process

Most Canadians are automatically enrolled for the GST/HST credit upon filing their annual tax returns. Newcomers or those who have not previously filed taxes in Canada should:

• Without Children: Complete Form RC151 (GST/HST Credit Application for Individuals Who Become Residents of Canada) and submit it to the local tax centre.
• With Children: Apply using Form RC66 (Canada Child Benefits Application) and include Form RC66SCH to provide residency and income details.

Payment Schedule

GST/HST credit payments are issued quarterly, typically on the 5th of the month or the preceding business day if the 5th falls on a weekend or holiday. For the 2025–2026 period, payments are scheduled for:

• April 4, 2025
• July 4, 2025 (reflecting the 2.7% increase)
• October 3, 2025
• January 5, 2026

Recipients who do not receive their payment within 10 business days of these dates should contact the CRA at 1-800-387-1193.

Maximizing Your Benefits

To ensure full benefit from the GST/HST credit:

• Timely Tax Filing: File your 2024 tax return promptly, even if you have no income, to facilitate accurate payment calculations.
• Update Personal Information: Notify the CRA of any changes in marital status, number of dependents, or address to prevent payment disruptions.
• Direct Deposit Enrollment: Register for direct deposit to receive payments swiftly and securely.

Impact of the GST/HST Credit Increase

This adjustment aims to alleviate financial pressures by:

• Offsetting Rising Costs: Helping cover expenses related to housing, utilities, and groceries.
• Supporting Families: Providing additional funds per child to assist with educational and childcare needs.
• Assisting Newcomers: Offering financial support to ease the transition into Canadian society.

FAQs

When will the increased GST/HST payments commence?

The enhanced payments will begin on July 4, 2025, based on your 2024 tax return.

Is application necessary for the GST/HST credit?

Most residents are automatically considered upon filing their tax returns. Newcomers must apply using the appropriate forms.

What if I don’t receive my payment on the scheduled date?

If your payment hasn’t arrived within 10 business days post the scheduled date, contact the CRA at 1-800-387-1193.