The first GST/HST payment of the year will hit the bank accounts of eligible Canadians on January 3, 2025. This benefit, aimed at helping those on the lower end of the income scale, is deposited four times each year, with the next payment following in April. These tax-free payments from the federal government are intended to assist individuals and families with low to moderate incomes to offset the Goods and Services Tax (GST) or Harmonized Sales Tax (HST) they incur on everyday purchases.
The Goods and Services Tax (GST) credit plays a significant role within Canada's social safety net. It’s part of the government’s broader strategy to provide financial relief by helping low and moderate-income households manage the costs associated with GST/HST on goods and services. The payments are calculated based on several factors, including family income, marital status, and number of children under 19 years of age registered for the Canada Child Benefit.
According to the Canada Revenue Agency (CRA), the GST/HST credits are automatically calculated based on the information provided on your tax return. This means Canadians eligible for the benefit do not need to file additional forms; if you qualify, the CRA will determine the appropriate amount. For the benefit year running from July 2024 to June 2025, the maximum payments for eligible individuals are as follows:
- Single Canadians can receive up to $519 annually.
- Married couples or common-law partners may receive up to $680.
- Parents can get up to $179 for each child under the age of 19.
This means, for example, a family with two children could receive up to $1,038 annually, factoring both their base payments and their children’s amounts.
Eligibility for these credits extends beyond just income levels. To be eligible for the January payment, individuals must be at least 19 years of age, reside in Canada during the months before the payment is made, and meet the adjusted family net income threshold, which is capped at $70,000. Notably, even Canadians under 19 years can qualify if they have or had a spouse or common-law partner or if they are parents living with their children. The income amounts are gradually phased out as earnings increase, ensuring the credits serve those with the greatest need.
The CRA has set specific dates for the 2025 GST payments: the first payment on January 3, followed by payments on April 4, July 4, and October 3. Canadians are encouraged to keep their information up to date with the CRA to avoid any payment delays. This includes notifying the agency about changes in marital status, the number of children, and any changes to banking information.
Importantly, the GST/HST credits are not considered taxable income, which means recipients do not need to report these payments as income on their tax return. This provides some reassurance to those receiving assistance, as the total amount can help mitigate the high costs of living, especially in light of recent inflation pressures.
Canada's federal government has also introduced additional measures, including recent “tax holidays” during which GST/HST is waived on specific items, as part of their effort to relieve some financial burden from consumers.
To provide clarity about their entitlements, recipients will receive annual notices indicating the credit amounts they can expect based on their most recently filed tax returns. This helps individuals and families understand their financial support and plan accordingly.
New residents of Canada are also eligible for the GST/HST credit, but they must apply through the CRA. This situation reflects the government’s commitment to supporting newcomers as they establish themselves and their families within the country.
On the other hand, Canadians who have not received their GST payments are advised to wait at least 10 business days post-scheduled payment date before reaching out to the CRA. Keeping personal banking and mailing information current can help prevent missed or delayed payments.
To estimate possible payments, one can use the CRA’s GST/HST credit calculator, which considers income, marital status, and number of children. This helpful tool assists Canadians in maximizing their benefits from this federal support program.
The upcoming payments are likely to be particularly significant for many households, especially as cost-of-living pressures persist. These credits serve not merely as financial support, but as recognition of the challenges faced by many Canadians and the government’s role in mitigating those through targeted assistance.