The Canadian government has announced a GST/HST Credit increase set to take effect in mid-2025, providing essential financial relief to low- and modest-income households.
This annual adjustment, based on inflation, ensures that the credit keeps pace with rising living costs such as groceries, housing, and utilities.
The updated credit will be calculated based on taxpayers’ 2024 tax returns, and eligible recipients will automatically receive their adjusted payments starting in July 2025.
What Is the GST/HST Credit?
The GST/HST Credit is a tax-free benefit administered by the Canada Revenue Agency (CRA). It helps offset the burden of the Goods and Services Tax (GST) and Harmonized Sales Tax (HST) on everyday purchases.
This credit is particularly valuable for single individuals, families with children, and newcomers to Canada who may be adjusting to the higher cost of living.
Key Features:
- Tax-Free Benefit: Offsets consumption taxes on daily purchases.
- Payment Frequency: Issued quarterly.
- Target Groups: Designed for low- and modest-income households.
- Annual Adjustment: Revised each year based on inflation data from the Consumer Price Index (CPI).
Why the GST/HST Credit Is Increasing in 2025
Every year, the CRA recalculates the GST/HST Credit to reflect changes in the cost of living. For 2025, the credit will increase by 2.7%, a modest adjustment compared to the 4.7% increase observed in 2024.
Despite being a smaller percentage, the boost still provides crucial financial support by offering extra funds to cover basic expenses.
Bullet Points on the Increase:
- Adjustment Based on CPI: Reflects inflation changes.
- 2.7% Increase: Calculated from 2024 tax returns.
- Effective Date: First increased payment will be issued in July 2025.
- Continuous Support: Quarterly payments ensure ongoing relief throughout the year.
How Much Will Recipients Get in 2025?
The increase translates into slightly higher annual amounts for different recipient categories. For single individuals, the maximum annual amount is now estimated at $349, up from $340 in 2024.
For each qualifying child, the amount increases to $184, rising from $179. Couples, when combined, will be eligible for up to $698 annually, and a single supplement is estimated at $184.
| Recipient Category | Maximum Annual Amount (2025) | Previous Annual Amount (2024) |
|---|---|---|
| Single Individuals | $349 | $340 |
| Per Child | $184 | $179 |
| Couples (Combined) | $698 | – |
| Single Supplement | $184 | – |
For example, a family of four (two adults and two children) could receive up to $1,066 annually, equating to approximately $266.50 per quarter. Similarly, a single parent with one child might receive $533 annually, or about $133.25 per quarter.
Income Thresholds for the GST/HST Credit
The amount of the GST/HST Credit also depends on the recipient’s Adjusted Family Net Income (AFNI). For 2025, the income thresholds have been adjusted upward by 2.7%.
The phase-in limit for a single supplement has increased to $11,337, while the phase-out limit for family net income now stands at $45,521.
These adjustments allow more Canadians to qualify for some level of payment, although the benefit gradually reduces as income increases beyond these thresholds.
| Income Threshold | 2025 Amount | 2024 Amount |
|---|---|---|
| Single Supplement Phase-in Limit | $11,337 | $11,039 |
| Family Net Income Phase-out Limit | $45,521 | $44,324 |
Who Qualifies for the GST/HST Credit?
Eligibility for the GST/HST Credit requires meeting certain criteria, ensuring that the support goes to those who need it most:
- Canadian Residency: Applicants must be Canadian residents for tax purposes at the start of the payment month.
- Age Requirement: Generally, individuals must be 19 years or older. Those under 19 may qualify if they are married, in a common-law relationship, or are parents living with their children.
- Income Considerations: Only those with incomes below the specified thresholds will qualify. The credit is phased out for higher incomes.
- Newcomers: International students, work permit holders, and refugees may be eligible but might need to apply manually during their first year in Canada.
Bullet Points on Eligibility:
- Must be a Canadian resident for tax purposes.
- Typically 19 years of age or older; exceptions apply.
- Eligibility depends on income levels and family status.
- Newcomers must apply manually for their first year.
Payment Schedule for the GST/HST Credit
The CRA issues GST/HST Credit payments quarterly. The specific dates for 2025 are as follows:
- April 4, 2025: Last payment under the 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.
Recipients who do not receive their payment within 10 business days should contact the CRA for assistance.
The 2025 GST/HST Credit increase is an important adjustment that ensures low- and modest-income Canadians continue to receive vital financial support in the face of rising living costs.
By aligning the credit with current inflation rates and adjusting income thresholds, the Canadian government aims to expand eligibility and provide additional relief.
Recipients should ensure their tax returns are filed on time and their personal details are up to date to benefit fully from these changes.
Regularly monitoring the CRA My Account will help ensure that payments are received promptly and that all adjustments are correctly applied.
FAQs
Who qualifies for the GST/HST Credit in 2025?
Eligible individuals must be Canadian residents for tax purposes, generally 19 or older, and meet specific income thresholds. Newcomers may need to apply manually.
What is the percentage increase for the GST/HST Credit in 2025?
The credit will increase by 2.7% based on the 2024 tax returns.
When are the GST/HST Credit payments scheduled?
Payments are issued quarterly: April 4, July 4, October 3, 2025, and January 5, 2026.