Hello Canadians! There is some wonderful news to cheer you up if rising living expenses is affecting you. Starting July 2025, the Canada Revenue Agency (CRA) intends to assist low- and moderate-income families offset the Goods and Services Tax (GST) and Harmonized Sales Tax (HST) they pay by raising the GST/HST Credit 2.7%. Whether you are a single person, a family, a newcomer, or an international student, this tax-free quarterly payment significantly helps you to manage your 2025 spending. We will explore the GST/HST Credit increase, eligibility requirements, maximum payment amounts, income threshold, payment dates, and professional advice to make sure you don’t miss out in this thorough guide. Let’s start!
What is the GST/HST Credit?
A tax-free quarterly payment from the CRA, the GST/HST Credit helps Canadians with low to moderate incomes recover some or all of the sales taxes they spend on regular items including groceries, gas, clothes, and services. Giving millions of families financial assistance, it is a pillar of Canada’s social support system. Ensuring it targets those most in need, the credit is recalculated each year depending on your adjusted family net income (AFNI) and household size. Furthermore including extra provincial and territorial advantages would increase its worth.
For the 2025-2026 payment period (July 2025 to June 2026), the CRA is boosting the credit by 2.7% to keep pace with inflation, as measured by the Consumer Price Index (CPI). This increase, though slightly lower than last year’s 4.7% jump, is a meaningful step to ease the financial burden of rising costs.
New Maximum GST/HST Credit Payments for 2025
The GST/HST Credit increase means more money in your pocket starting July 4, 2025. Here’s a breakdown of the new maximum annual payments for the 2025-2026 payment period, based on your 2024 tax return:
-
Single individuals: Up to $349 (up from $340 in 2024). That’s about $87.25 per quarter.
-
Couples (married or common-law): Up to $698 combined (up from $680). That’s roughly $174.50 per quarter.
-
Per child under 19: Up to $184 (up from $179). That’s approximately $46 per quarter per child.
-
Single supplement: Up to $184 for eligible low-income singles, providing extra support.
Example Scenarios:
-
A family of four (two adults, two children) could receive up to $1,066 annually ($698 for the couple + $184 × 2 for the kids), or $266.50 per quarter.
-
A single parent with one child could get up to $533 annually ($349 + $184), or $133.25 per quarter.
-
A single individual with no children could receive up to $349 annually, or $87.25 per quarter.
These amounts are non-taxable, meaning you don’t need to report them on your tax return, and they’re paid directly to your bank account or by cheque.
Income Thresholds for GST/HST Credit Eligibility
Your adjusted family net income (AFNI) determines both your eligibility and the payment amount you receive. The CRA has updated the income thresholds for 2025 to reflect inflation. Here’s what you need to know:
-
Single supplement phase-in threshold: Starts at $11,337 (up from $11,039 in 2024). If your income is below this, you may qualify for the single supplement.
-
Phase-out threshold: Begins at $45,521 (up from $44,324 in 2024). If your AFNI exceeds this, your credit gradually decreases until it phases out entirely.
Income Caps by Family Structure (2023 Base Year, for Reference):
-
Single individual: No credit if AFNI is $54,704 or higher.
-
Couple with no children: No credit if AFNI is $60,000 or higher.
-
Couple with four children: No credit if AFNI is $69,015 or higher.
For precise estimates, use the CRA’s Child and Family Benefits Calculator to input your income and family details. Keep in mind that an increase in your 2024 AFNI could reduce your payments starting in July 2025, so updating your CRA records is crucial.
GST/HST Credit Payment Dates for 2025-2026
The GST/HST Credit is paid quarterly, typically on the 5th of July, October, January, and April (or the last business day before if the 5th falls on a weekend or holiday). Here are the confirmed payment dates for the 2025-2026 period:
-
July 4, 2025 (first increased payment)
-
October 3, 2025
-
January 5, 2026
-
April 3, 2026
If your total credit for the year is less than $50 per quarter, the CRA may issue a one-time payment in July 2025 to cover the entire period. Set up direct deposit through CRA My Account to receive payments faster and avoid delays from mailed cheques. If you don’t receive your payment within 10 business days, contact the CRA at 1-800-387-1193.
Who is Eligible for the GST/HST Credit?
To qualify for the GST/HST Credit in 2025, you must meet the following eligibility criteria:
-
Residency: You must be a Canadian resident for tax purposes in the month before and at the start of the payment month (e.g., April 1, 2025, for the April 4 payment). This includes permanent residents, citizens, and certain temporary residents like international students or work permit holders. Non-residents or those absent from Canada for the entire year are not eligible.
-
Age: You must be 19 or older in the payment month. If you’re under 19, you can still qualify if:
-
You are (or were) married or in a common-law relationship.
-
You are (or were) a parent living with your child.
-
-
Tax Filing: You must file an income tax return for 2024, even if you had no income. This allows the CRA to assess your eligibility automatically.
-
Income: Your AFNI must be below the phase-out threshold ($45,521 for 2025). Higher incomes may reduce or eliminate your credit.
Special Cases:
-
Newcomers to Canada: If you’re an international student, work permit holder, or new permanent resident, you’re eligible in your first year but must apply manually using Form RC151 (no children) or Form RC66 (with children). Submit these to your local tax centre.
-
Shared custody: Parents in shared custody may receive half the credit for their child, along with related provincial credits.
-
Children: If you receive the Canada Child Benefit (CCB), your child is automatically registered for the GST/HST Credit. Otherwise, use Form RC66 to register them.
Ineligibility:
You won’t qualify if:
-
Your AFNI exceeds the phase-out threshold.
-
You’re not a Canadian resident for tax purposes.
-
You’re incarcerated or under similar circumstances during the payment period.
How to Apply for the GST/HST Credit
For most Canadians, there’s no separate application needed! Simply file your 2024 tax return, even if you had no income, and the CRA will automatically assess your eligibility. You’ll receive a GST/HST Credit notice in July 2025 detailing your credit amount for the year.
Newcomers:
If you’re new to Canada, follow these steps:
-
With children: Complete Form RC66 (Canada Child Benefits Application) and Form RC66SCH (Status in Canada and Income Information). Provide proof of birth for your children if the CRA hasn’t paid benefits for them before.
-
Without children: Complete Form RC151 (GST/HST Credit Application for Individuals Who Become Residents of Canada).
-
Submit forms via CRA My Account or mail to your local tax centre.
Updates to Avoid Overpayments or Underpayments:
Notify the CRA immediately about life changes like:
-
Marriage or separation.
-
Birth of a child.
-
Change in custody.
-
Change in income due to reassessment. These updates ensure your payments are accurate. Overpayments may need to be repaid, so keep your info current
Expert Tips to Maximize Your GST/HST Credit
-
File Your Taxes on Time: Even with no income, filing your 2024 tax return by April 30, 2025, is critical to receive your credit starting July 2025. Late filing could delay payments.
-
Set Up Direct Deposit: Sign up through CRA My Account to get payments faster. Cheques can take up to 10 business days to arrive.
-
Check Provincial Credits: Some provinces, like British Columbia (Climate Action Tax Credit) or Newfoundland and Labrador (Seniors’ Benefit), combine payments with the GST/HST Credit. Ensure you’re enrolled for these.
-
Use the CRA Calculator: Estimate your credit with the Child and Family Benefits Calculator to plan your budget.
-
Newcomers, Act Fast: Apply for the credit as soon as you arrive in Canada to avoid missing payments. Retroactive payments are possible for up to 3 years under taxpayer relief provisions.
-
Monitor CRA My Account: Check your payment status, update personal details, and view notices to stay informed.
-
Budget Wisely: Use the credit to cover essentials like groceries, bills, or debt repayment, or save it for big goals like back-to-school shopping.
Why This GST/HST Credit Increase Matters
Along with benefits like the Canada Child Benefit (CCB), Canada Workers Benefit (CWB), and provincial programs, the GST/HST Credit is component of Canada’s larger social support system. Tax-free financial aid helps low- and middle-income Canadians be able to buy necessities and keep financial stability. The Canadian government’s dedication to helping families through inflation and higher expenses is reflected in the 2.7% rise and one-off $250 payment.
Conclusion
The GST/HST Credit increase starting July 2025 is a lifeline for low- and modest-income Canadians, offering tax-free quarterly payments to offset GST/HST costs. With new maximum payments of up to $349 for singles, $698 for couples, and $184 per child, plus a one-time $250 relief payment in May 2025, this benefit can make a real difference in your budget. Whether you’re a long-time resident, a newcomer, or an international student, file your 2024 taxes, update your CRA details, and set up direct deposit to secure your share. Use the CRA’s Child and Family Benefits Calculator to estimate your credit and plan ahead.
FAQs About the GST/HST Credit Increase
Q: When does the GST/HST Credit increase start?
A: The 2.7% increase begins with the July 4, 2025, payment, based on your 2024 tax return.
Q: Do I need to apply for the GST/HST Credit?
A: Most Canadians are automatically enrolled when they file their taxes. Newcomers must apply using Form RC151 or Form RC66.
Q: Can international students or temporary residents qualify?
A: Yes, if you’re a Canadian resident for tax purposes in your first year, you’re eligible. Apply manually with the appropriate form.
Q: What if I miss a GST/HST credit payment?
A: Wait 10 business days, then contact the CRA at 1-800-387-1193. Check CRA My Account for payment status.
