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In response to ongoing economic challenges and rising living costs, the Canadian government has announced a one-time Extra GST Payment in 2025.
This initiative aims to provide additional financial support to low- and moderate-income individuals and families.
Here’s everything you need to know about this payment, including eligibility criteria, payment amounts, and important dates.
What Is the Extra GST Payment?
The Extra GST Payment is a one-time, tax-free payment of $250 issued by the Canada Revenue Agency (CRA) in May 2025.
This payment is separate from the regular quarterly GST/HST credit and is designed to help Canadians cope with inflation and increased living expenses.
Eligible recipients will receive this payment automatically, provided they meet certain criteria.s
Eligibility Criteria
To qualify for the Extra GST Payment, individuals must meet the following conditions:
- Residency: Must be a resident of Canada for tax purposes.
- Age: At least 19 years old as of December 31, 2024.
- Income Thresholds:
- Single individuals: Adjusted net income below $50,000.
- Families: Adjusted family net income below $150,000.
- Tax Filing: Must have filed the 2023 income tax return.
It’s important to note that the CRA uses information from your 2023 tax return to determine eligibility. Therefore, timely filing is crucial to receive the payment.
Payment Amount and Schedule
Eligible individuals will receive a one-time payment of $250. This amount is consistent across all eligible recipients, regardless of marital status or number of children.
The payment is scheduled for May 2025. If you have set up direct deposit with the CRA, the funds will be deposited directly into your bank account. Otherwise, a cheque will be mailed to your registered address.
Regular GST/HST Credit vs. Extra GST Payment
The Extra GST Payment is in addition to the regular GST/HST credit, which is a quarterly tax-free payment to help individuals and families with low and modest incomes offset the GST or HST they pay.
For the 2023 base year (payment period from July 2024 to June 2025), the maximum annual amounts are:
- Single individuals: Up to $519.
- Married or common-law partners: Up to $680.
- Each child under 19: Additional $179 per child.
These regular payments are issued on the following dates in 2025:
- January 3, 2025
- April 4, 2025
- July 4, 2025
- October 3, 2025
How to Ensure You Receive the Payment
To receive the Extra GST Payment, ensure the following:
- File Your 2023 Tax Return: Even if you have no income to report, filing your tax return is essential.
- Update Direct Deposit Information: Log in to your CRA My Account to set up or update your direct deposit details for faster payment.
- Keep Personal Information Current: Ensure your address and other personal details are up to date with the CRA to avoid delays.
The Extra GST Payment in May 2025 offers timely financial relief to Canadians facing economic challenges.
By understanding the eligibility criteria and ensuring your tax and personal information are up to date, you can take full advantage of this government support.
Stay informed and proactive to receive the benefits you’re entitled to.
FAQs
Do I need to apply for the Extra GST Payment?
No. If you meet the eligibility criteria and have filed your 2023 tax return, the payment will be issued automatically.
Will the Extra GST Payment affect my other benefits?
No. The payment is non-taxable and does not affect other government benefits such as the Canada Child Benefit or Old Age Security.
What if I haven’t filed my 2023 tax return yet?
You should file your 2023 tax return as soon as possible. The CRA will process your eligibility upon receiving your return, and any payments will be issued accordingly.