The Government of Canada has announced an increase in the Goods and Services Tax (GST) and Harmonized Sales Tax (HST) Credit, set to take effect in mid-2025. This adjustment aims to provide financial relief to low- and modest-income individuals and families who are struggling with the rising cost of living.
With inflation affecting the prices of essential goods and services, the government ensures that the GST/HST Credit remains relevant by adjusting it annually. If you are eligible, your payments will automatically increase starting in July 2025, based on the information from your 2024 tax return.
Understanding this increase, who qualifies, and how much you will receive is important to ensure you get the full benefits. This article covers everything you need to know about the 2025 GST credit adjustment.
Understanding the GST/HST Credit
The GST/HST Credit is a tax-free benefit provided by the Canadian government to help lower-income individuals and families offset the sales tax they pay on goods and services. The Canada Revenue Agency (CRA) administers this benefit and issues payments quarterly.
This credit is especially beneficial for:
- Single individuals with limited income.
- Families with children who require financial support.
- Newcomers, such as international students and work permit holders, who need financial assistance when settling in Canada.
Since the credit is indexed to inflation, it is recalculated every year to reflect changes in living costs.
Why Is the GST Credit Increasing in 2025?
Each year, the CRA adjusts the GST/HST Credit based on the Consumer Price Index (CPI). This ensures that Canadians receive financial support in line with inflation. In 2025, the credit will rise by 2.7%, a slight decrease compared to the 4.7% increase in 2024.
While this may seem like a modest adjustment, the increase still helps eligible Canadians manage rising costs. The first payment reflecting this change will be issued in July 2025, based on the income reported in the 2024 tax return.
How Much Will You Receive in 2025?
The increased GST/HST Credit payments for 2025 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 |
Examples:
- A family of four (two parents, two children) could receive $1,066 per year, or $266.50 per quarter.
- A single parent with one child could receive $533 per year, or $133.25 per quarter.
Income Limits for GST Credit in 2025
Your eligibility for the GST/HST Credit depends on your Adjusted Family Net Income (AFNI). The 2025 phase-out thresholds have increased, making more people eligible for some level of payment.
| 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 AFNI exceeds the threshold, your payment amount will gradually decrease. Those earning above the maximum limit will not qualify for the credit.
Who Can Get the GST/HST Credit?
To qualify for the GST/HST Credit, you must:
- Be a Canadian resident for tax purposes at the start of the payment month.
- Be 19 years or older.
- If you are under 19, you may still qualify if you:
- Are married or in a common-law relationship.
- Have a child and live with them.
Newcomers, including international students and work permit holders, may qualify, but they must apply manually in their first year.
Payment Schedule for 2025
GST payments are issued quarterly by the CRA, typically on the 5th of the month (or the previous Friday if it falls on a weekend).
| 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 you do not receive your payment within 10 business days, contact CRA at 1-800-387-1193.
How to Apply for the GST Credit
Most Canadians are automatically enrolled for the GST/HST Credit when they file their tax return. However, newcomers must apply manually in their first year.
If you are a newcomer without children, you must submit:
- Form RC151 (GST/HST Credit Application for Individuals Who Become Residents of Canada).
If you are a newcomer with children, you must submit:
- Form RC66 (Canada Child Benefits Application).
- Form RC66SCH (Status in Canada and Income Information).
What to Do If You Don’t Receive Your GST Payment
If you believe you qualify but do not receive your payment, follow these steps:
- Check CRA My Account to verify eligibility and payment status.
- Ensure your 2024 tax return was filed on time.
- Confirm your banking details if you are signed up for direct deposit.
- Contact CRA at 1-800-387-1193 for assistance.
How the GST Credit Increase Helps You
The 2025 GST/HST Credit increase is a welcome adjustment for Canadians facing higher living costs. To ensure you receive the maximum benefit, make sure to:
- File your taxes on time, even if you have no income.
- Update your marital and family status with the CRA.
- Sign up for direct deposit for faster payments.
With the first increased payment arriving in July 2025, now is the best time to prepare and ensure you receive your full benefits.