In 2025, the Government of Canada is making important adjustments to the Goods and Services Tax (GST) and Harmonized Sales Tax (HST) Credit, offering increased support to low- and modest-income individuals and families.
This increase, which takes effect mid-year, is part of the government’s efforts to help residents manage rising living costs.
By providing a slight increase in GST credit payments, the government aims to ensure that households can keep up with inflationary pressures.
What Is the GST/HST Credit?
The GST/HST Credit is a tax-free benefit designed to help low- and modest-income Canadians offset the taxes they pay on everyday goods and services. It is administered by the Canada Revenue Agency (CRA) and is paid quarterly.
This benefit is especially valuable for:
- Single individuals who struggle with daily living costs
- Families with children who need extra financial support for household expenses
- Newcomers to Canada, including international students and work permit holders
The credit is recalculated annually to reflect inflation, ensuring it stays relevant to the economic conditions of the country.
Why Is the GST Credit Increasing in 2025?
In line with rising living costs, the GST/HST Credit is adjusted each year based on the Consumer Price Index (CPI). For 2025, the credit will increase by 2.7%, slightly lower than the 4.7% increase seen in 2024.
While the increase is modest, it will still provide valuable financial relief for those eligible.
The first payment reflecting this adjustment will be made in July 2025, based on your 2024 tax return. Therefore, it’s important to file taxes on time to ensure the proper calculation of your benefit.
How Much GST Payment Will You Get in 2025?
For 2025, the maximum GST credit payments are as follows:
| Recipient Category | Maximum Annual Amount (2025) | Previous Amount (2024) |
|---|---|---|
| Single individuals | $349 | $340 |
| Per child | $184 | $179 |
| Couples (combined) | $698 | N/A |
| Single supplement | $184 | N/A |
For example:
- A family of four (two adults and two children) could receive up to $1,066 annually or $266.50 per quarter.
- A single parent with one child could receive up to $533 annually or $133.25 per quarter.
Income Thresholds for GST Credit in 2025
The eligibility for the GST/HST Credit depends on your Adjusted Family Net Income (AFNI). For 2025, the income thresholds have been increased by 2.7%, meaning that more individuals and families may qualify for some level of benefit.
| Category | 2025 Income Threshold | 2024 Income Threshold |
|---|---|---|
| Single supplement phase-in limit | $11,337 | $11,039 |
| Family net income phase-out limit | $45,521 | $44,324 |
If your income exceeds the threshold, your payment will gradually reduce. You will no longer qualify for the credit once your income surpasses the maximum threshold.
Who Can Receive the GST/HST Credit?
Eligibility for the GST/HST Credit is based on the following criteria:
- Be a Canadian resident for tax purposes at the start of the payment month
- Be 19 years of age or older
- Individuals under 19 may still qualify if they are married, in a common-law relationship, or have a child living with them
Newcomers to Canada, including international students, work permit holders, and refugees, may also qualify, but they must apply manually during their first year.
When Will the GST Credit Payments Be Made?
The CRA issues GST payments quarterly, typically on the 5th of each month. However, if the 5th falls on a weekend, the payment will be issued on the preceding Friday. The payment schedule for 2025 is as follows:
| Payment Date | Notes |
|---|---|
| April 4, 2025 | Last payment under 2024 rates |
| July 4, 2025 | First payment reflecting the 2.7% increase |
| October 3, 2025 | Regular quarterly payment |
| January 5, 2026 | First payment of 2026 |
If a recipient does not receive their payment within 10 business days, they should contact the CRA at 1-800-387-1193 for assistance.
How to Apply for the GST Credit
Most Canadians automatically qualify for the GST/HST Credit when they file their tax returns. However, newcomers must apply manually for their first year in Canada.
If eligible, newcomers should complete the relevant forms depending on their situation:
- Form RC151 for individuals without children
- Form RC66 and RC66SCH for individuals with children
What to Do If You Don’t Receive Your GST Payment
If you do not receive your payment, follow these steps:
- Verify your CRA My Account to check eligibility and payment status
- Ensure your 2024 tax return was filed on time
- Confirm your banking details if enrolled for direct deposit
- Contact the CRA for further assistance if needed
The 2025 GST/HST Credit increase offers significant financial support to low- and modest-income Canadians, particularly those facing rising living costs.
By ensuring eligibility and filing taxes on time, eligible recipients can benefit from this relief starting in July 2025.
FAQs
How can I check if I’m eligible for the GST Credit in 2025?
Eligibility can be verified through your CRA My Account or by checking the income thresholds listed above.
When will I receive my first increased GST credit payment?
The first increased payment will be issued on July 4, 2025.
How do I apply for the GST/HST Credit if I’m a newcomer to Canada?
Newcomers must apply manually using specific forms based on whether they have children or not.