In 2025, Canadians will benefit from a boost to the Goods and Services Tax (GST) or Harmonized Sales Tax (HST) credit, offering up to $519 more for single individuals, $650 for couples, and $171 per child. This enhanced credit aims to support low- to moderate-income households by helping offset the taxes they pay on everyday goods and services.
How the 2025 GST Payments Are Changing
The upcoming increase in GST payments comes at a time when rising inflation is putting extra pressure on household budgets. This article provides an overview of the increased credit amounts, eligibility requirements, and steps to make sure you receive your due share. We’ll also cover tips on maximizing the credit, avoiding common mistakes, and integrating it into your broader financial plan.
GST/HST Credit in 2025: New Payment Amounts
In 2025, Canadians can expect the following increases:
- Single individuals: Up to $519 extra
- Couples (married/common-law): Up to $650 extra
- Families with children under 19: An additional $171 per child
The payments are distributed quarterly, with the next one set for April 2025. The GST/HST credit is a crucial program for many families, and these changes provide significant relief for those who are feeling the squeeze of high living costs.
How Is the GST/HST Credit Calculated?
The amount you receive from the GST/HST credit depends on your adjusted family net income (AFNI) and household size. The lower your income, the larger your credit. Eligibility also takes into account the number of dependents in your household, such as children, and your filing status. Couples must file jointly to claim the credit. It’s also important to note that provinces or territories may offer additional benefits that impact your total payment.
For instance, single individuals with incomes below $38,000 may qualify for the full amount, while a married couple earning under $50,000 may be eligible for the maximum credit as well.
How to Apply for the GST/HST Credit
Applying for the GST/HST credit is simple. It’s automatically processed when you file your annual tax return. Even if you don’t owe taxes or have any income, it’s essential to file your return to ensure the CRA can assess your eligibility.
Here’s what you need to do:
- File your tax return by April 30 each year to avoid delays.
- Verify your income to ensure the CRA has up-to-date information for accurate calculations.
- Check the payment schedule to know when to expect your payments, which are deposited directly or mailed via cheque.
- Update your information with the CRA if there are changes in your income, family size, or marital status.
Tips to Maximize Your GST/HST Credit