In a move aimed at offering greater financial support to low- and modest-income Canadians, the Government of Canada has announced an increase to the Goods and Services Tax (GST)/Harmonized Sales Tax (HST) Credit for 2025. This adjustment, set to take effect in July 2025, reflects the government’s ongoing commitment to helping residents cope with the rising cost of living, particularly for essential items like food, housing, and utilities. By linking the annual credit to inflation, the government ensures that financial aid remains relevant and impactful.
With inflation continuing to affect everyday expenses, this modest yet significant 2.7% increase in the GST/HST Credit will provide a much-needed buffer for individuals and families who qualify. The adjustment is calculated based on recipients’ 2024 tax returns, meaning it’s crucial for eligible Canadians to file their taxes on time to benefit from the raised credit amount. The credit is disbursed quarterly, and the increased payments will begin in July 2025.
This credit is more than just a tax break—it serves as an essential tool for financial relief. Whether you’re a single adult, a parent, or a newcomer to Canada, understanding the eligibility requirements, income thresholds, and payment amounts can help you make the most of this government support.
What Is the GST/HST Credit?
The GST/HST Credit is a tax-free quarterly payment issued by the Canada Revenue Agency (CRA) to assist low- and moderate-income Canadians in offsetting the taxes paid on goods and services. This benefit is especially helpful for single individuals, families with dependents, and newcomers who are adjusting to the Canadian economy. The payment is automatically reassessed each year to reflect inflation, ensuring its relevance amid changing economic conditions.
Why Is the GST Credit Increasing in 2025?
The GST/HST Credit sees an annual adjustment based on the Consumer Price Index (CPI). For 2025, the benefit will rise by 2.7%, a slightly smaller increase compared to the 4.7% seen in 2024. Despite this, it remains a significant measure to support financially vulnerable households. The new rates will take effect with the July 4, 2025, payment and will be determined by information from the 2024 tax return.
How Much Can You Receive in 2025?
The 2025 GST credit amounts have been increased across all categories:
- Single adults: Up to $349 annually (up from $340)
- Per child: $184 (up from $179)
- Couples: Up to $698 combined
- Single supplement: Additional $184
For example:
- A family of four (two adults, two children) could receive up to $1,066 per year, or $266.50 quarterly
- A single parent with one child might receive $533 per year, or $133.25 quarterly
Income Thresholds for 2025
Eligibility is based on Adjusted Family Net Income (AFNI), with updated thresholds for 2025:
- Single supplement phase-in limit: $11,337 (up from $11,039)
- Family net income phase-out limit: $45,521 (up from $44,324)
If your income exceeds these thresholds, your credit amount may be reduced or phased out entirely.
Who Qualifies for the GST/HST Credit?
To receive the GST/HST Credit, you must:
- Be a Canadian resident for tax purposes
- Be 19 years or older, or:
- Be married/common-law, or
- Be a parent living with your child
Newcomers, such as international students, temporary workers, and refugees, are also eligible but must apply manually during their first year of residency.
Payment Schedule for 2025
GST/HST Credit payments are issued quarterly by the CRA. The 2025 schedule is:
- April 4, 2025: Final payment under 2024 rates
- July 4, 2025: First payment with 2025 increase
- October 3, 2025
- January 5, 2026
If the 5th falls on a weekend, payments are issued on the previous Friday.
How to Apply for the GST Credit
Most Canadians are automatically considered for the GST/HST Credit when filing their tax return. However, newcomers must apply manually:
- Without children: Submit Form RC151
- With children: Submit Form RC66 and Form RC66SCH
What to Do If You Don’t Receive Your Payment
If you expected a payment but didn’t receive it:
- Check your CRA My Account
- Ensure your tax return was filed
- Verify your banking details for direct deposit
- Contact the CRA at 1-800-387-1193
What the GST Credit Increase Means for You
This upcoming increase in the GST/HST Credit reflects the government’s effort to ease the pressure of inflation. While the boost may appear modest, it can make a tangible difference when combined with other benefits. To maximize your eligibility and timely receipt of funds:
- File taxes annually, even with no income
- Update your marital/family status with the CRA
- Enroll in direct deposit for faster payments
Prepare ahead of the July 2025 payment to ensure you receive your full entitlements.