The Canadian government has announced a modest but impactful increase to the Goods and Services Tax/Harmonized Sales Tax (GST/HST) Credit for the 2025–2026 benefit year. Effective July 2025, the credit will rise by 2.7%, in response to ongoing inflation and rising living costs across the country. While the adjustment is smaller than last year’s 4.7% increase, it still provides vital tax-free financial assistance to low- and modest-income individuals and families.
Here’s what you need to know about the updated payment amounts, eligibility rules, and how this credit can help offset rising expenses.
What Is the GST/HST Credit?
The GST/HST Credit is a quarterly, non-taxable payment from the Canada Revenue Agency (CRA). It’s designed to offset a portion of the GST or HST paid on everyday purchases. Eligible Canadians receive these payments automatically based on their previous year’s tax return—no separate application is needed for most people.
The credit supports those most affected by sales tax, including single adults, couples, and families with children, particularly those with limited or moderate incomes.
Key Changes to GST/HST Payments in 2025
Starting in July 2025, recipients will see a 2.7% increase in their annual GST/HST credit. This inflation adjustment ensures the benefit maintains its value in the face of rising costs.
Updated GST/HST Credit Amounts for 2025:
| Recipient Type | 2024 Amount (CAD) | 2025 Amount (CAD) | Increase |
|---|---|---|---|
| Single Individual | $340 | $349 | +$9 |
| Per Eligible Child | $179 | $184 | +$5 |
| Couple (Combined) | $680 | $698 | +$18 |
| Single Supplement | $179 | $184 | +$5 |
A family with two adults and two children could now receive up to $1,066 per year ($266.50 quarterly), while a single parent with one child could receive $533 annually, or $133.25 per quarter.
Who Qualifies for the GST/HST Credit?
Eligibility for the GST/HST Credit is based on several criteria. To qualify, you must:
- Be a Canadian resident for tax purposes
- Be 19 years or older, or:
- Have a spouse/common-law partner
- Be living with your child
- File an income tax return, even with no income
- For newcomers, submit Form RC151 in the first year
The CRA uses your Adjusted Family Net Income (AFNI) from your prior tax return to determine how much you receive.
2025 Income Thresholds and Phase-Out Levels
As your household income increases, the GST/HST Credit amount gradually decreases. For 2025, thresholds have been adjusted upward by 2.7%.
2025 Updated Income Thresholds:
| Category | 2024 Threshold (CAD) | 2025 Threshold (CAD) | Increase |
|---|---|---|---|
| Phase-in (Single Supplement) | $11,039 | $11,337 | +$298 |
| Phase-out Start (Families) | $44,324 | $45,521 | +$1,197 |
If your income exceeds these thresholds, your credit will be reduced or eliminated entirely. This ensures the benefit targets those with the greatest need.
Payment Schedule and Delivery Methods
The GST/HST Credit is paid quarterly, typically on the 5th of July, October, January, and April. If the 5th falls on a weekend or holiday, payments are issued on the preceding business day.
To ensure timely delivery:
- File your 2024 tax return on time
- Sign up for CRA direct deposit
- Keep your CRA “My Account” information updated
- If you’re new to Canada, submit Form RC151
If a payment is late, CRA advises waiting 10 business days before calling for assistance at 1-800-387-1193.
Why the 2025 GST/HST Credit Increase Is Important
Although a 2.7% increase may not seem like much, it represents a meaningful boost for those relying on every dollar to manage rising costs. This tax-free support goes directly toward everyday essentials—groceries, utilities, transportation—and is particularly vital for families, seniors, and low-income individuals.
Additionally, the automatic and tax-free nature of the credit makes it one of the most efficient federal support programs, offering targeted aid with minimal administrative burden.
As Canadians continue to feel the pinch of inflation, the GST/HST Credit remains a critical lifeline for millions. With a small bump in 2025, it continues to fulfill its purpose: helping those who need it most keep up with the rising cost of living.
FAQs
Do I need to apply for the GST/HST Credit every year?
No. If you’ve filed your tax return, the CRA will automatically determine your eligibility.
How do I apply if I’m new to Canada?
Newcomers must submit Form RC151 in their first year to apply for the credit manually.
What if I didn’t receive my payment on the due date?
Wait 10 business days before contacting CRA at 1-800-387-1193.