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Starting July 2025, millions of Canadians will benefit from a 2.7% increase in the GST/HST Credit, offering much-needed tax-free financial support to individuals and families with low to moderate incomes.
As inflation continues to raise the cost of living—from groceries and gas to rent—this quarterly benefit can significantly ease the financial strain.
Whether you’re a long-term resident, a single parent, or a newcomer to Canada, here’s everything you need to know about the 2025 GST increase, including eligibility, payment amounts, and how to apply.
What Is the GST/HST Credit?
The GST/HST Credit is a tax-free quarterly benefit issued by the Canada Revenue Agency (CRA). It helps offset the burden of sales taxes for low- and modest-income Canadians.
This credit is:
- Calculated based on your Adjusted Family Net Income (AFNI) and household size.
- Reassessed each year based on your previous year’s tax return.
- Designed to support:
- Single individuals
- Families with children
- Newcomers (including refugees, students, and work permit holders)
Key Update: GST/HST Credit Increase in 2025
In line with rising inflation, the CRA has confirmed a 2.7% increase in the GST payment starting July 4, 2025.
Though this is slightly lower than the 4.7% rise in 2024, it still provides meaningful assistance for many Canadians.
New Annual GST Payment Amounts for 2025
Here’s what eligible individuals and families can expect based on their 2024 tax return:
| Recipient Type | Maximum Annual Amount (2025) | Previous Amount (2024) |
|---|---|---|
| Single Individuals | Up to $349 | $340 |
| Per Child | Up to $184 | $179 |
| Couples (Combined) | Up to $698 | – |
| Single Supplement | Up to $184 | – |
Examples:
- A family of four (2 adults + 2 children) could get up to $1,066 annually ($266.50 per quarter)
- A single parent with one child may receive up to $533 per year ($133.25 per quarter)
Updated Income Thresholds for 2025
Your eligibility is based on your Adjusted Family Net Income (AFNI), which has also been increased by 2.7%:
| Threshold Type | 2025 Amount | 2024 Amount |
|---|---|---|
| Phase-in for Single Supplement | $11,337 | $11,039 |
| Phase-out Threshold | $45,521 | $44,324 |
Note: Payments start reducing after reaching the phase-out level, and those exceeding the limit may no longer qualify.
Who Is Eligible for the 2025 GST/HST Credit?
To receive the GST/HST credit in 2025, you must meet the following conditions:
General Eligibility
- You are a Canadian resident for income tax purposes the month before and at the beginning of the month the payment is issued.
- You are 19 or older, or if under 19:
- You’re married/common-law or
- A parent living with your child
Eligibility for Newcomers
Newcomers such as:
- Permanent residents
- International students
- Refugees
- Work permit holders
…can also apply during their first year in Canada.
Who Is Not Eligible for the 2025 GST Payment?
You won’t qualify if:
- Your income exceeds the phase-out threshold.
- You are not a Canadian resident for tax purposes.
- You did not file your 2024 tax return.
GST Payment Schedule for 2025–2026
The CRA issues GST/HST payments quarterly on the 5th of the month, or the Friday before if the 5th falls on a weekend.
Payment Dates
| Quarter | Payment Date |
|---|---|
| July 2025 | July 4, 2025 |
| October 2025 | October 3, 2025 |
| January 2026 | January 5, 2026 |
| April 2026 | April 3, 2026 |
How to Apply for the GST/HST Credit in 2025
Most Canadians are automatically enrolled after filing their 2024 taxes, even if they have zero income.
Newcomers Without Children
- Submit Form RC151 to your nearest tax centre.
Newcomers With Children
- File Form RC66 (Canada Child Benefits Application) and RC66SCH (Status and Income Form).
- You can apply through CRA’s My Account or by mail.
Important Reminders
- File your 2024 tax return on time to avoid delays.
- Update your information: marital status, number of dependents, and direct deposit info.
- Enroll for direct deposit to get your payment faster.
What to Do If You Don’t Receive Your Payment
If your payment doesn’t show up:
- Log in to CRA My Account to verify eligibility.
- Ensure your 2024 tax return is filed and current.
- Check that your banking details are accurate.
- If still unresolved, call CRA at 1-800-387-1193.
The GST/HST Credit increase in 2025 is a welcome change aimed at helping Canadians better cope with rising expenses. Whether you’re a single individual, parent, or newcomer, this tax-free payment provides a crucial financial cushion.
Make sure you’ve filed your 2024 tax return, update your personal and banking info, and apply manually if you’re new to the country. With the first increased GST payment arriving July 4, 2025, now is the perfect time to ensure you’re ready to benefit from this important government support.
FAQs
When will the new GST payments begin?
The increased GST/HST payments start on July 4, 2025.
How do I know if I qualify for the GST credit?
You must be a Canadian resident for tax purposes, 19 years or older (or meet specific exceptions), and have an AFNI under $45,521 in 2025.
Can international students receive the GST/HST Credit?
Yes. International students and newcomers are eligible. They must submit Form RC151 (without children) or RC66 (with children).