Starting July 4, 2025, the Canada Revenue Agency (CRA) will implement a 2.7% increase in the Goods and Services Tax/Harmonized Sales Tax (GST/HST) credit. This adjustment aims to provide additional financial support to low- and modest-income Canadians amid rising living costs.
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Understanding the GST/HST Payment Credit Increase 2025
The GST/HST credit is a tax-free quarterly payment designed to help individuals and families with low to modest incomes offset the GST or HST they pay on goods and services. Eligibility and payment amounts are determined based on the previous year’s tax return, considering factors such as:
- Adjusted family net income
- Marital status
- Number of children under 19 years of age
For the payment period from July 2024 to June 2025, the maximum annual GST/HST credit amounts are:
- $519 for single individuals
- $680 for married or common-law partners
- $179 for each child under 19 years of age
Impact of the 2.7% Increase
The 2.7% increase in the GST/HST credit, effective July 2025, will result in higher quarterly payments for eligible recipients. Individuals and families receiving the maximum credit amounts will see a modest boost in their payments, offering extra relief to cope with inflation and other rising costs.
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Payment Schedule GST/HST Payment Credit 2025
The GST/HST credit is issued quarterly. For the 2025 calendar year, the payment dates are:
- January 3, 2025
- April 4, 2025
- July 4, 2025
- October 3, 2025
Note: If the total annual GST/HST credit amount is less than $50 per quarter, the CRA may issue the entire amount as a lump sum payment.
Eligibility Criteria GST/HST Payment Credit 2025
To qualify for the GST/HST credit, you must:
- Be a Canadian resident for income tax purposes
- Be at least 19 years old, or have (or had) a spouse or common-law partner, or be (or have been) a parent and live (or have lived) with your child
- Have a family net income below the threshold set by the CRA, which varies depending on your family situation
If you’re eligible, you don’t need to apply separately. The CRA will automatically assess your eligibility when you file your annual tax return.
Conclusion
The upcoming 2.7% GST/HST credit increase in July 2025 demonstrates the government’s ongoing effort to support Canadians facing economic challenges. This modest but meaningful adjustment will help many individuals and families better manage their daily expenses. To ensure you receive the correct amount, keep your tax information up to date and file your return on time.
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