With inflation continuing to affect everyday costs in Canada, the upcoming January 2025 GST/HST Credit payment offers welcome financial relief for households with lower or modest incomes. This quarterly tax-free payment, issued by the Canada Revenue Agency (CRA), is designed to help offset the costs of Goods and Services Tax (GST) and Harmonized Sales Tax (HST). Eligible recipients can expect their payments as early as Friday, January 3, 2025.
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Here’s a breakdown of everything you need to know about the GST/HST Credit, including who qualifies, how much you could receive, and tips for maximizing your benefit.
What Is the GST/HST Credit?
The GST/HST Credit is a tax-free quarterly benefit aimed at assisting lower-income individuals and families in Canada. By offsetting some of the GST or HST you’ve paid throughout the year, this payment provides much-needed financial support to help cover everyday expenses. In some provinces and territories, additional programs are tied to the credit, offering even greater benefits.
Who Is Eligible for the GST/HST Credit?
To qualify for the GST/HST Credit, you must:
- Be a Canadian resident for tax purposes.
- Not be exempt from taxes (e.g., diplomats and their families).
- Be at least 19 years old by the month before a payment is issued.
Exceptions: If you’re under 19 but married, in a common-law relationship, or a parent living with your child, you may still qualify.
Income Thresholds for Eligibility
Your eligibility and payment amount depend on your family’s income. For example:
- Single individuals earning over $54,704 annually do not qualify.
- Families with four or more children are eligible if their combined income is below $72,244.
How to Apply for the GST/HST Credit
The good news? You don’t need to apply separately for the GST/HST Credit if you file your taxes each year. The CRA automatically assesses your eligibility based on your tax return.
Newcomers to Canada
If you’re new to Canada, you’ll need to complete Form RC151 to apply for the GST/HST Credit and the Canada Carbon Rebate. Be sure to include proof of birth for any children in your care. Once completed, mail the form to your tax centre.
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How Much Can You Receive?
The amount you’ll receive depends on your family’s income and situation. Here’s a quick overview of the maximum amounts for each quarter:
- Up to $129.75 for an individual.
- Up to $40.25 for a spouse or common-law partner.
- Up to $44.75 for each child in your care.
- Single parents can receive $129.75 for their first child.
Additional Provincial and Territorial Programs
Certain provinces and territories offer extra benefits tied to the GST/HST Credit:
- British Columbia: The BC Climate Action Tax Credit adds up to $126 for an individual, $63 for a spouse, and $31.50 per child.
Future Payment Adjustments
While the GST/HST Credit amounts are increasing in 2025, the new rates won’t take effect until the next benefit period starting in July 2025.
CRA Federal Benefit Payment Schedule 2025: Official Key Dates Announced
Key Dates for GST/HST Credit Payments in 2025
Mark your calendars! The GST/HST Credit payments for 2025 are scheduled for:
- January 3, 2025
- April 4, 2025
- July 4, 2025
- October 3, 2025
Special GST and HST Holiday: Save Even More!
From now until February 15, 2025, Canadians can benefit from a GST and HST holiday, allowing you to save on taxes for a wide range of essentials, including most food items and children’s clothing. This temporary tax break is another opportunity to stretch your budget further.
FAQs About the GST/HST Credit
Is the GST/HST Credit Taxable?
No, the GST/HST Credit is entirely tax-free. It’s specifically designed to offset taxes you’ve already paid and doesn’t need to be reported as income on your tax return.
What If I Haven’t Received My Payment?
If you’re expecting a payment and haven’t received it, double-check your CRA My Account or contact the CRA directly. Payments are usually issued via direct deposit or mailed cheque.
Make the Most of Your Benefits
The January 2025 GST/HST Credit payment can provide crucial support for Canadian households feeling the squeeze from inflation. By staying informed about eligibility, payment schedules, and provincial programs, you can maximize your financial relief and start the new year on a stronger footing.
For more updates on federal benefits, keep an eye on your CRA My Account or visit the CRA’s official website.
Does anyone know, if this GST payment is a double payment, or not, I’m confused ?
Thomas.
Personally I should be eligible for the gst tax credit. However I have moved from my old address to my new address. And I am having difficulties checking my mail at my old address for my gst payments. Canada post was also on strike which made he think that my mail was not showing up at my old address. However I do believe the strike is over and I need to find out if any mail as showed up at my old address. I will have to ask my Father I imagine to find that out.