The Canadian government in 2025 will provide one additional payment under the Goods and Services Tax (GST) and Harmonized Sales Tax (HST) credit plan to alleviate the rise in cost of living for low-and moderate-income individuals and families. This tax-free benefit is distributed quarterly by the Canada Revenue Agency (CRA) and is meant to relieve some of the GST/HST paid on everyday purchases. Maximizing this benefit requires knowledge of eligibility criteria, amounts, and schedules for payments.
Description of the GST Credit
The GST/HST credit is a non-taxable payment made quarterly to assist individuals and families of low- to moderate-income levels in offsetting, at least in part, the GST or HST they pay. The CRA decides who is eligible based on your annual tax filing, meaning no separate application is necessary.
Eligibility Criteria for Extra GST/HST Payment for 2025
You will qualify for the extra GST/HST payment in 2025 if:
- Residency: You must be a resident of Canada for income tax purposes.
- Age: You are a least 19 years of age before the month of payment. A person under 19 years of age would still qualify if he or she has a spouse or common-law partner or is a parent living with his child.
- Income Thresholds: Your adjusted family net income must be below the thresholds set by the government based on your 2024 tax return.
- Tax Filing: While filing your income tax for the year 2024, it should be done before April 30, 2025, even though you had no income.
- The CRA makes a check for your eligibility when you file your tax return, so there is no need for a separate application.
Payment Amount in 2025
The amount you receive is based on your family net income, marital status, and the number of children under 19 in your care. For the benefit period of July 2024 to June 2025, these maximum annual amounts are:
- Single individual: $519.
- Married/Common-law couple: $680.
- For each child under 19: $179 per child.
Income Thresholds for Phase-Out
The amount of the credit decreases as your adjusted family net income rises. The general income thresholds for partial benefits are:
- Single: No children: up to $52,255.
- Married/common-law: No children: up to $55,295.
- Married/common-law: One child: Up to $58,295.
- Married/common-law: Two children: Up to $61,295.
The CRA will determine your actual amount from your 2024 tax return.
Payment Dates for 2025
The extra GST/HST credit payments are set to occur on the following 2025 dates:
- April 4
- July 4
- October 3
If the payment falls on a weekend or holiday, it will be sent out on the last preceding business day.
Ensure Payment Filtering Steps
To receive your GST/HST credit smoothly:
- File Tax Returns for 2024: Submissions to reach the CRA by April 30, 2025. Filing may be required even if there is no income in order to be eligible.
- Update Personal Information: Keep marital status, address, and bank information revised with CRA so as not to postpone payment.
- Enrol in Direct Deposit: Sign up through your CRA My Account to have payments faster and reliably.
Example Scenarios
Single Example 1
- Profile: Alex is a single individual with an annual income of $35,000.
- Calculation:
- Base Credit: $519
- Phase-out threshold was below Alex’s income, hence full amount.
- Quarterly payment: $129.75.
Example #2: Married Couple with 2 Kids
- Profile: Maria and John, married, with two children, earn $48,000 combined.
- Calculation:
- Base Credit for Couple: $680.
- Children’s Credit: $179 x 2 = $358.
- Total Annual Credit = $680 + $358 = $1,038.
- Quarterly Payment: $259.50.
Extra Relief Measures for 2025
Along with the extra GST/HST credit, several relief measures have been introduced by the Canadian government in 2025:
- One-Time $250 Rebate for Working Canadians: Tax-free rebate for persons income-earning up to $150,000 in 2023, provided they file their 2023 Tax Return by December 31, 2024, and are Canadian residents by March 31, 2025.
- GST/HST Holiday: Temporary exemption of GST/HST from some basic necessities covering groceries, children’s clothes, and restaurant meals, from December 14, 2024, to February 15, 2025.
These projects are all designed to offer further financial assistance to Canadians at these times.
Understanding the eligibility criteria, payment amounts and dates, filing tax returns on time, and keeping personal information current are some of the ways to maximize the benefits from the extra GST/HST payment in 2025.