New GST Payment Increase Coming in Mid-2025
Canadian residents with low and modest incomes can expect changes to the Goods and Services Tax (GST) and Harmonized Sales Tax (HST) credit program starting in mid-2025. The GST/HST credit, a tax-free quarterly payment, is designed to help eligible individuals and families offset the sales taxes they pay on everyday goods and services.
The program, administered by the Canada Revenue Agency (CRA), has been a vital financial support for millions of Canadians. For 2025, the CRA has announced key updates to payment amounts, eligibility criteria, and application processes to ensure more families can benefit from this relief.
What Is the GST/HST Credit?
The GST/HST credit is a quarterly, non-taxable payment provided to low- and modest-income individuals and families. It helps offset the impact of GST/HST paid on purchases of goods and services throughout the year. Payments are issued four times annually, with amounts based on the previous year’s income tax return.
Eligible recipients can receive payments not only for themselves but also for their spouse or common-law partner and their children under 19. This makes the credit a valuable resource for families managing tight budgets.
Key Highlights for 2025
For the payment period from July 2024 to June 2025, the CRA has set the following maximum payment amounts:
- Up to $519 for an individual.
- Up to $680 for a married or common-law couple.
- An additional $179 per child under 19.
These amounts are based on income from the 2023 tax year and family situation. The CRA calculates eligibility and payment amounts after processing tax returns.
Eligibility Criteria for the GST/HST Credit
To qualify for the GST/HST credit, certain conditions must be met. First, you must be a Canadian resident for income tax purposes at the beginning of the month when the payment is issued. Additionally, you must be at least 19 years old in the month of the payment.
Special conditions apply for individuals under 19. You may still qualify if you are married or in a common-law relationship, or if you are a parent living with your child. These provisions ensure that younger individuals and families with dependents are not excluded from receiving the benefit.
How to Apply for the GST/HST Credit
Applying for the GST/HST credit is straightforward for most Canadian residents. The CRA automatically determines eligibility based on your income tax return. Even if you had no income in 2023, filing your tax return is essential to ensure you receive the credit.
For newcomers to Canada, such as international students, work permit holders, or new permanent residents, additional steps may be required. If you are not a parent, you need to complete Form RC151, the GST/HST Credit and Canada Carbon Rebate Application for Individuals Who Become Residents of Canada. Parents should complete the appropriate form and mail it to their nearest CRA tax centre to initiate their application.
How the GST Payment is Calculated
The CRA calculates your GST/HST credit based on your 2023 tax return. After processing your return, they will issue a notification in July 2024. This notification will detail your eligibility for the GST credit and the exact amount you will receive for each quarterly payment.
Missed the January Payment?
If your GST payment is not deposited by January 15, 2025, there are steps you can take to address the issue. First, check your CRA My Account to confirm your eligibility. Ensure your banking information and mailing address are up-to-date. If the issue persists, contact the CRA helpline at 1-800-387-1193 for further assistance.
Important GST/HST Payment Dates for 2025
The CRA has scheduled the GST/HST credit payments for 2025 on the following dates:
- January 3, 2025
- April 4, 2025
- July 4, 2025
- October 3, 2025
Temporary GST/HST Break
A temporary GST/HST break was introduced, offering additional savings on select goods from December 14, 2024, to February 15, 2025. This break provides further financial relief to eligible individuals and families during the specified period.
Conclusion
The GST/HST credit is a valuable benefit designed to ease financial pressures for low- and modest-income Canadians. Ensuring your tax filings are up-to-date is crucial to receiving this benefit. For newcomers, timely applications can help you receive your entitled credits without delay. Stay informed and plan your finances around the key payment dates to make the most of these payments.
Additional Information
For more details and to stay updated on any future changes, visit the Canada Revenue Agency’s official website or contact their helpline for assistance.
Conclusion
The GST/HST credit is a vital financial support for low- and modest-income Canadians, helping to alleviate the burden of sales taxes on everyday purchases. With updated payment amounts and eligibility criteria for 2025, it’s more important than ever to ensure your tax filings are accurate and up-to-date. Whether you’re a long-time resident or a newcomer to Canada, understanding how to apply and when to expect payments can make a significant difference in your household budget. Stay informed about key payment dates and any additional relief measures, such as the temporary GST/HST break, to maximize your benefits throughout the year.
Frequently Asked Questions (FAQ)
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What is the GST/HST credit?
The GST/HST credit is a quarterly, non-taxable payment provided to eligible low- and modest-income individuals and families to help offset the sales taxes they pay on goods and services.
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How much can I receive in GST/HST payments for 2025?
The maximum payments for 2025 are up to $519 for an individual, $680 for a married or common-law couple, and an additional $179 per child under 19.
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How do I apply for the GST/HST credit?
Most Canadian residents are automatically assessed for eligibility based on their tax return. Newcomers may need to complete Form RC151 and submit it to the CRA.
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What are the key GST/HST payment dates for 2025?
The payments will be issued on January 3, April 4, July 4, and October 3, 2025.
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What if I missed my January 2025 GST payment?
Check your CRA My Account for eligibility and ensure your banking and address details are up-to-date. If issues persist, contact the CRA helpline at 1-800-387-1193.
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Do I need to apply if I had no income in 2023?
Yes, you must file your tax return to be assessed for eligibility, even if you had no income.
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Can newcomers to Canada receive the GST/HST credit?
Yes, newcomers may be eligible. They may need to complete additional forms, such as Form RC151, to apply for the credit.
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