Canadians to Receive Latest GST/HST Credit Payments: Here's What You Need to Know
As we enter the new year, Canadians can expect a timely boost to their finances with the latest GST/HST credit payments rolling out this week. For those with lower to modest incomes, these quarterly payments are a lifeline, offsetting the costs of the goods and services tax (GST) or harmonized sales tax (HST) on everyday items. The first payments of 2025 will be distributed on January 3, and this marks the third quarterly payout for the 2023 base year.
These tax-free credits are especially helpful for individuals and families struggling with rising costs. The credits are not just limited to the GST/HST tax itself but can also include payments from provincial and territorial programs, further helping those facing the ongoing financial challenges caused by inflation.
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The amount a person or family receives depends on various factors. These include marital status, adjusted family net income, and the number of children under 19 years old who are registered for the Canada Child Benefit. For instance, a single Canadian without children could receive up to $519 in GST/HST credits for the entire year, which is split into quarterly payments. Couples, without children, could see up to $680, while each child under 19 adds an additional $179 to the total for the year. If parents share custody, they may receive half of the GST/HST credit for a child, depending on their custody arrangement.
It's important to note that this payment coincides with the federal government’s two-month “tax holiday” period, running from December 14 to February 15. During this period, Canadians don't pay GST/HST on specific goods like groceries, restaurant meals, and children's clothing. However, the amount people receive from the GST/HST credit will not be impacted by this tax holiday, as confirmed by a federal finance spokesperson.
Who qualifies for the GST/HST credit? Generally, residents of Canada aged 19 and older are eligible, as long as they meet the income requirements and filed their taxes for 2023. For those under 19, eligibility extends to those who have a spouse, common-law partner, or children. The credit's eligibility is based on adjusted family net income, which varies depending on the number of children in the household. For singles, the income must be lower than $54,704 without children, or higher thresholds for those with children. For couples, the income must fall below $57,924 without children, with higher limits as the number of children increases.
This payment will help alleviate some financial pressure on those struggling with the ongoing cost of living. For many Canadians, the GST/HST credit is an essential financial support that ensures they can keep up with their daily expenses. If you haven't set up direct deposit, the payments will be sent via cheque. Expect the next quarterly payment to come in April 2025. If you don't see the payment right away, don't worry—just wait up to 10 working days before contacting the Canada Revenue Agency.
As Canadians continue to manage inflation and its impact, these quarterly payments serve as an important reminder of how tax credits can support families, individuals, and communities through challenging economic times.
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