In 2025, the Canada Revenue Agency (CRA) continues its support for low- and moderate-income Canadians through the GST/HST credit.
This tax-free benefit aims to offset the Goods and Services Tax (GST) and Harmonized Sales Tax (HST) paid by individuals and families.
Eligible recipients can receive up to $680 annually, with payments distributed quarterly. Understanding the eligibility criteria and payment details is crucial to ensure you receive this benefit.
Understanding the GST/HST Credit
The GST/HST credit is a non-taxable payment provided by the CRA to assist individuals and families with low or modest incomes in offsetting the GST or HST they pay.
The credit is calculated based on your adjusted family net income from your 2023 tax return and is paid out over four quarters starting in July 2024 through June 2025.
Eligibility Criteria
To qualify for the GST/HST credit in 2025, you must meet the following conditions:
- Residency: Be a resident of Canada for income tax purposes in the month before and at the beginning of the month in which the CRA makes a payment.
- Age: Be at least 19 years old. If under 19, you must have (or had) a spouse or common-law partner, or be (or have been) a parent and live (or have lived) with your child.
- Income: Your adjusted family net income must be below certain thresholds, which vary depending on your family situation.
Payment Amounts
The amount you receive depends on your family situation and income level. For the payment period from July 2024 to June 2025, the maximum annual amounts are:
| Family Situation | Maximum Annual Credit |
|---|---|
| Single individual | $519 |
| Married or common-law couple | $680 |
| Each child under 19 years of age | $179 per child |
Note: These amounts are subject to reduction based on your adjusted family net income.
Payment Schedule
The GST/HST credit is paid quarterly. For the 2025 calendar year, the scheduled payment dates are:
- January 3, 2025
- April 4, 2025
- July 4, 2025
- October 3, 2025
Payments are typically issued via direct deposit or mailed cheque. If your total annual credit is less than $50, the CRA will issue the full amount in a single payment.
How to Apply
No separate application is necessary for the GST/HST credit. Simply file your annual income tax return, even if you have no income to report. The CRA will automatically determine your eligibility and calculate your credit amount.
Newcomers to Canada may need to complete additional forms:
- Form RC151: For individuals without children.
- Form RC66: For individuals with children, to apply for all child and family benefits, including the GST/HST credit.
These forms should be submitted to your local tax centre.
Income Thresholds
The GST/HST credit is income-tested. Your credit amount is reduced as your adjusted family net income increases, and you may not qualify if your income exceeds certain thresholds. For the 2023 base year, the income levels at which the credit is eliminated are:
| Family Situation | Income Threshold |
|---|---|
| Single individual | $54,704 |
| Married/common-law couple with no children | $57,924 |
| Married/common-law couple with one child | $61,504 |
| Married/common-law couple with two children | $65,084 |
Note: These thresholds are subject to annual adjustments.
Maximizing Your Benefits
If you qualify for the GST/HST credit, you may also be eligible for other government benefits:
- Canada Child Benefit (CCB): Tax-free monthly payments to eligible families to help with the cost of raising children under 18.
- Canada Workers Benefit (CWB): A refundable tax credit for low-income individuals and families who are in the workforce.
- Climate Action Incentive Payment (CAIP): Quarterly payments to offset the cost of federal pollution pricing.
Ensure you file your tax return annually and keep your personal information up to date with the CRA to receive all benefits for which you are eligible.
The GST/HST credit is a valuable benefit designed to ease the financial burden of sales taxes for low- and moderate-income Canadians.
By understanding the eligibility criteria and ensuring timely tax filings, you can take full advantage of this and other government benefits. Stay informed and proactive to maximize your entitlements in 2025.
FAQs
Do I need to apply separately for the GST/HST credit?
No, the credit is automatically calculated when you file your income tax return.
What if I don’t have any income? Should I still file a tax return?
Yes, filing a tax return is necessary to determine your eligibility for the GST/HST credit and other benefits, even if you have no income.
How will I receive my GST/HST credit payments?
Payments are issued via direct deposit or mailed cheque, based on your preference indicated with the CRA.