New GST Payment Increase Coming In mid-2025

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New GST Payment Increase Coming In mid-2025

February 15, 2025
9:20 am

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Last Updated On 15 February 2025, 8:51 AM EST (Toronto Time)

Good news for Canadians! The new GST payment increase in 2025 is coming, putting more money back into the pockets of low- and modest-income individuals and families.

With rising living costs, this boost aims to ease the financial burden by offsetting the sales taxes you pay.

Whether you’re a long-time resident, an international student, or a newcomer to Canada, this guide covers everything you need to know about the upcoming changes, eligibility, payment amounts, and how to ensure you receive your share.

The GST/HST Credit is a tax-free quarterly payment designed to help low- and modest-income Canadians offset the goods and services tax or harmonized sales tax they pay on purchases.

Administered by the Canada Revenue Agency (CRA), this benefit is recalculated annually based on your family net income and household size, ensuring it reaches those who need it most.

The credit is especially vital for:

Single individuals struggling with rising costs.
Families managing expenses for children.
Newcomers, including international students, refugees, and work permit holders.

Each year, the CRA adjusts benefit payments to account for inflation, based on the Consumer Price Index (CPI).

For 2025, the GST/HST Credit will see a 2.7% increase compared to 2024.

While this is smaller than last year’s 4.7% jump, it still provides meaningful relief for eligible Canadians.

The increased payments will start in July 2025, based on your 2024 tax return.

Here’s a breakdown of the new maximum amounts:

Single individuals: Up to $349 annually (up from $340 in 2024).
Per child: Up to $184 annually (up from $179 in 2024).
Couples: Up to $698 annually (combined maximum for both partners).
Single supplement: Up to $184 annually for eligible low-income singles.

For example:

A family of four (two adults and two children) could receive up to $1,066 annually, or $266.50 per quarter.
A single parent with one child could receive up to $533 annually, or $133.25 per quarter.

The CRA uses your adjusted family net income (AFNI) to determine eligibility and payment amounts.

These thresholds are also rising by 2.7% in 2025:

Phase-in threshold for single supplement: $11,337 (up from $11,039 in 2024).
Family net income where credit begins to phase out: $45,521 (up from $44,324 in 2024).

If your AFNI exceeds the phase-out threshold, your GST payment will gradually decrease.

If it exceeds the maximum threshold, you will not be eligible for the credit.

Most Canadian residents for income tax purposes are automatically eligible for the GST/HST Credit, but there are specific criteria to meet:

General Eligibility

You qualify if:

You are a Canadian resident for income tax purposes in the month before and at the start of the payment month.
You are 19 years or older in that month.

If you’re under 19, you must meet at least one of these conditions:

You are (or were) married or in a common-law relationship.
You are a parent living with your child (currently or previously).

Newcomers, including permanent residents, refugees, and temporary residents (e.g., international students, work permit holders), are also eligible.

The CRA considers you a newcomer during your first year in Canada. However, you must apply for the credit (see “How to Apply” below).

Who Is Not Eligible?

You will not receive the GST/HST Credit if:

Your AFNI exceeds the phase-out threshold.
You are not a Canadian resident for tax purposes.
You fail to file a tax return for the relevant year.

The CRA issues GST/HST credit payments quarterly on the 5th of the month (or the preceding Friday if the 5th falls on a weekend).

Here are the upcoming payment dates:

April 4, 2025
July 4, 2025 (first payment reflecting the 2.7% increase)
October 3, 2025
January 5, 2026

If you don’t receive your payment within 10 working days of these dates, contact the CRA at 1-800-387-1193.

Most eligible Canadians are automatically enrolled for the GST/HST Credit when they file their annual tax return, even if they had no income.

However, newcomers must apply manually if they land in Canada after the tax season. Here’s how:

For Newcomers Without Children

Complete Form RC151 (GST/HST Credit and Canada Carbon Rebate Application for Individuals Who Become Residents of Canada).
Submit it to your local tax centre for the year you became a Canadian resident for tax purposes.
Note: You don’t need to file Form RC151 if you’re applying for the Canada Child Benefit (CCB).

For Newcomers With Children

Apply using My Account or by mail with Form RC66 (Canada Child Benefits Application).
Also complete Form RC66SCH (Status in Canada and Income Information for the Canada Child Benefits Application) to provide residency and income details.

General Tips

Always file your 2024 tax return by the deadline to ensure your payment is calculated correctly.
Update your personal information (e.g., marital status, number of children) with the CRA to avoid delays.

How the GST/HST Credit Helps Canadians

The GST/HST Credit plays a critical role in supporting low- and modest-income households. Here’s why this increase matters:

1. Offsets Rising Costs

With inflation driving up the cost of essentials like groceries, gas, and housing, the 2.7% increase helps ease the burden of sales taxes, giving you more disposable income.

2. Supports Families

Families with children receive additional payments per child, making it easier to cover school supplies, clothing, and other expenses.

3. Includes Newcomers

Newcomers, including international students and refugees, can benefit from the credit during their first year, helping them settle into life here.

4. Tax-Free and Hassle-Free

The payment is tax-free and deposited directly into your bank account, requiring minimal effort once you’re enrolled.

If you’re eligible but don’t receive your payment, here’s what to do:

Check your CRA My Account to confirm your eligibility and payment status.
Ensure your 2024 tax return was filed and your information is up to date.
Verify your banking information with the CRA for direct deposit.
Contact the CRA at 1-800-387-1193 if the issue persists.

While the 2.7% increase may seem modest compared to last year’s 4.7% boost, it reflects the CRA’s commitment to adjusting benefits in line with inflation.

For many Canadians, every dollar counts, and this increase could mean:

More money for groceries or utility bills.
Extra savings for unexpected expenses.
Reduced financial stress for low-income households.

For example:

A single individual earning below $11,337 will receive the full $349 annually, or $87.25 per quarter.
A family of four with an AFNI below $45,521 could receive $1,066 annually, or $266.50 per quarter.

To ensure you receive the maximum benefit:

File your taxes on time, even if you had no income in 2024.
Update your family status (e.g., marriage, separation, new child) with the CRA.
Apply for provincial credits alongside the GST/HST Credit, as they may also increase in 2025.
Set up direct deposit to receive payments faster and avoid delays.

The 2025 GST/HST Credit increase is a welcome relief for millions of Canadians facing rising costs.

Whether you’re a single individual, a parent, or a newcomer, this tax-free payment can make a real difference in your budget.

By filing your 2024 tax return and ensuring your information is up to date, you can secure your share of this benefit starting in July 2025.

Stay informed, apply if you’re a newcomer, and check your CRA My Account regularly to track your payments.

With the first increased payment arriving on July 4, 2025, now is the time to prepare.

When will the new GST payment amounts start?

The increased payments begin on July 4, 2025, based on your 2024 tax return.

Do I need to apply for the GST/HST credit?

Most Canadians are automatically enrolled after filing taxes. Newcomers must apply using Form RC151 (no children) or Form RC66 (with children).

How much will a family of four receive in 2025?

A family of four could receive up to $1,066 annually, or $266.50 per quarter, depending on their income.

What if I don’t receive my payment?

Wait 10 working days after the payment date, then check CRA My Account or call 1-800-387-1193.

Are international students eligible?

Yes, international students and other newcomers can apply for the GST/HST Credit during their first year in Canada.

Gagandeep Kaur Sekhon

Gagandeep Kaur Sekhon moved to Canada in 2010 on a study visa. She navigated through the ups and downs of her student life and gained her permanent residency in 2015. Today, she is a proud Canadian citizen residing in Calgary, Alberta. She is mother of 2 beautiful daughters and making her difference through writing and guidance at INC – Immigration News Canada.