With discussions underway since 2025 pertaining to the potential modification of Canada’s Goods and Services Tax (GST), the GST rate continues to stay put at 5% as of today. While the tax rate remains intact, adjustments have been made to the GST/HST credit amounts to provide greater assistance to low- and modest-income Canadians. Also, temporary measures were adopted to provide additional relief during the holiday time.
Understanding The GST Rate Stability
The GST came into existence in 1991 and is a federal tax that applies at a rate of 5% on most goods and services in Canada. The government has opted to maintain the 5% GST rate even in 2025, thus offering an element of certainty to consumers and businesses amidst economic crises and inflationary pressures.
The GST/HST Credit Enhancement
A quarterly payment that is not subject to tax is given by the government to assist individuals with lower and modest incomes. This credit, termed the GST/HST credit, has been adjusted with maximum annual credit amounts for the period of July 2024 to June 2025. A single person can have a maximum credit amount of $519; a married or common-law couple can receive a total of $680. For every child under the age of 19, $179 is added to that credit total. The intention behind the adjustments is to give a marginal counterbalance to GST/HST paid, adequate help being benefited by those families and individuals who qualify.
Payment Schedule of GST/HST Credit for 2025
In 2025, the Canada Revenue Agency has scheduled the GST/HST credit payments for January 3, April 4, July 4, and October 3. Recipients should take note of these dates and keep their personal information up to date with CRA to avoid any delays.
Temporary GST-HST Relief Measures
To provide further assistance during the holiday season between 14th December 2024 and 15th February 2025, a temporary holiday on GST and HST with respect to certain goods has been granted. This measure was aimed at alleviating the burdens of Canadians purchasing basic necessities and gifts.
Conclusion
Even though the GST rate remains unchanged at 5% for the year 2025, the government took steps to improve financial assistance for qualifying Canadians. Through adjustments to the GST-HST credit amounts and the provision of temporary tax relief during the holiday season, these measures are intended to relieve financial burdens from those people in need.
