With inflation continuing to impact the cost of living, the upcoming January 2025 GST/HST Credit payment provides crucial financial relief for low- and modest-income households in Canada.
This tax-free quarterly payment, issued by the Canada Revenue Agency (CRA), helps offset Goods and Services Tax (GST) and Harmonized Sales Tax (HST) expenses. Eligible recipients can expect their payments starting January 3, 2025.
What Is the GST/HST Credit?
The GST/HST Credit is a tax-free benefit issued quarterly to assist individuals and families with lower incomes in managing the costs of GST and HST. It offsets some of the taxes paid throughout the year, providing essential financial support for covering everyday expenses.
Eligibility Criteria for the GST/HST Credit
To qualify for the GST Credit, individuals must meet the following criteria:
- Residency: Be a Canadian resident for tax purposes.
- Age: Be at least 19 years old by the end of the month before the payment is issued. Exceptions are made for those under 19 if they are married, in a common-law relationship, or have children.
- Tax Status: Not be exempt from taxes, such as diplomats and their families.
Income Thresholds for Eligibility
Eligibility is determined based on adjusted family net income. Payments are gradually reduced as income increases, phasing out entirely at specific thresholds:
- Single individuals earning over $54,704 are not eligible.
- Families with four or more children are eligible if their combined income is below $72,244.
How to Apply for the GST/HST Credit
No separate application is needed for the GST/HST Credit. Filing an annual tax return ensures automatic consideration for eligibility.
Newcomers to Canada must complete Form RC151 to apply for the credit and other benefits. It is important to include proof of birth for any children in care and mail the form to the relevant tax centre.
GST/HST Credit Payment Amounts
The payment amount depends on family size and net income. For the 2024–2025 benefit period, the maximum quarterly amounts are:
| Recipient Type | Maximum Quarterly Amount |
|---|---|
| Single Individual | $129.75 |
| Spouse/Common-Law Partner | $40.25 |
| Each Child Under 19 | $44.75 |
| Single Parent (First Child) | $129.75 |
A family with two children, for example, could receive up to $259.50 per quarter.
Key Dates for GST/HST Credit Payments in 2025
The CRA issues GST/HST Credit payments quarterly on the following dates:
- January 3, 2025
- April 4, 2025
- July 4, 2025
- October 3, 2025
Payments typically arrive via direct deposit or cheque. If you do not receive your payment on the scheduled date, allow up to 10 business days before contacting the CRA.
Additional Provincial and Territorial Benefits
Certain provinces and territories provide additional benefits tied to the GST/HST Credit:
- British Columbia: Residents may receive the BC Climate Action Tax Credit, which supplements the GST/HST Credit with payments for individuals, spouses, and children.
- Ontario: The Ontario Trillium Benefit combines various tax credits, providing additional relief for eligible residents.
Temporary GST/HST Holiday
To provide further support, a temporary GST/HST holiday is in effect until February 15, 2025. During this period, specific essential items such as basic groceries and children’s clothing are exempt from GST/HST, offering Canadians an opportunity to save on necessary purchases.
Tips for Maximizing Your GST/HST Credit
To maximize your benefit, consider these tips:
- File Taxes on Time: Ensure your tax return is filed annually, even if you have no income.
- Update Information: Notify the CRA of any changes in marital status, number of children, or address to avoid delays.
- Maintain Records: Keep accurate records of your income and expenses to support your tax filings.
What is the GST/HST Credit?
The GST/HST Credit is a tax-free quarterly payment that helps lower-income Canadians offset the GST or HST paid on goods and services.
How do I qualify for the GST/HST Credit?
Eligibility is based on residency, age, income, and tax filing status. Filing your annual tax return ensures automatic assessment.
When will the January 2025 payment be issued?
The January 2025 GST/HST Credit payment will be issued on January 3, 2025.
