In a welcomed move to support low- and modest-income Canadians facing inflation pressures, the federal government has confirmed a new GST payment hike scheduled for July 2025.
The Goods and Services Tax (GST) Credit, which helps offset the burden of GST and HST, is seeing a boost this year as part of the government’s cost-of-living strategy outlined in Budget 2024.
Here’s everything you need to know about the July 2025 GST Credit increase, including payment amounts, eligibility, dates, and how it may impact your household.
What Is the GST Credit?
The GST/HST Credit is a tax-free quarterly payment from the Canada Revenue Agency (CRA). It’s intended to assist individuals and families with lower incomes by reducing the amount of GST/HST they pay.
As part of the July 2025 update, eligible Canadians will receive increased GST payments thanks to revised income thresholds and benefit amounts that account for rising living costs.
What’s New in July 2025?
The latest enhancement to the GST Credit for 2025 includes:
- A boost of up to $92 more per adult and $50 more per child annually.
- Updated net income thresholds based on 2024 tax returns.
- A push to ensure more single Canadians and seniors qualify.
The CRA will begin issuing these higher GST payments starting July 5, 2025.
Who Qualifies for the New GST Credit?
To receive the July 2025 GST payment, you must meet the following eligibility criteria:
Basic Eligibility
- Must be a Canadian resident for income tax purposes.
- Must be 19 years or older or living with a spouse/common-law partner or child.
- Must have filed a 2024 income tax return, even with no income.
Income Thresholds
The credit amount is income-tested. Payments decrease as household income increases.
GST Credit Income and Benefit Amounts for 2025
Below is a breakdown of estimated benefit amounts and income cut-offs based on family type for the 2025–2026 benefit year starting in July:
| Family Type | Maximum Annual GST Credit | Income Cut-off (Approx.) |
|---|---|---|
| Single (no children) | $548 | $52,255 |
| Single parent with 1 child | $732 | $60,500 |
| Couple with 2 children | $1,216 | $64,200 |
| Senior couple (no children) | $948 | $58,000 |
Note: These are estimated maximums. Actual payments depend on your net family income and number of dependents.
Payment Schedule for July 2025
GST/HST credits are paid quarterly. Here are the official CRA payment dates for the upcoming fiscal year:
| Quarter | Payment Date |
|---|---|
| July 2025 | July 5, 2025 |
| October 2025 | October 4, 2025 |
| January 2026 | January 3, 2026 |
| April 2026 | April 4, 2026 |
Ensure your direct deposit information is up to date in your CRA MyAccount to avoid delays.
How to Claim the GST Credit
You do not need to apply separately for the GST Credit. To receive the payment, you must:
- File your 2024 income tax return, even if you earned no income.
- Update your marital status and dependent information if there are changes.
- Register for direct deposit to receive payments quickly.
The CRA will automatically assess your eligibility based on your filed return.
Special Benefits for Seniors and Single Parents
The July 2025 GST Credit update especially benefits:
- Seniors on fixed income, whose benefits are now better aligned with COLA 2025 and rising medical costs.
- Single parents, who can receive enhanced credits for each dependent child, easing the burden of daily essentials.
Why This Matters in 2025
With inflation still affecting the cost of groceries, housing, and transportation, the boosted GST Credit comes at a crucial time. According to financial analysts, this move is part of a broader federal policy to:
- Strengthen Canada’s social safety net.
- Reduce poverty rates.
- Support middle-class Canadians in navigating ongoing economic volatility.
The Canada GST Credit Increase for July 2025 provides much-needed financial relief for low- and modest-income individuals and families.
With higher payments and broader eligibility, this tax-free credit could significantly ease household expenses. Make sure to file your taxes, update your CRA info, and check your payment status this summer.
FAQs
Do I have to apply for the July 2025 GST Credit increase?
No. The CRA automatically calculates your eligibility based on your 2024 tax return. You must file your return to qualify.
What if I didn’t receive my July 5 GST payment?
Check your CRA MyAccount for status updates. Ensure your direct deposit info is current and that your 2024 return was filed.
Will the GST Credit continue to increase in 2026?
While future increases aren’t guaranteed, the government has signaled ongoing cost-of-living support, which may include further GST enhancements.