The Canada Revenue Agency (CRA) is preparing to issue the eagerly awaited HST/GST payment on April 4, 2025, offering valuable financial support to low- and modest-income Canadians.
This quarterly, tax-free benefit is designed to ease the burden of goods and services tax (GST) and harmonized sales tax (HST), which individuals and families encounter when making everyday purchases.
Whether you’re a longtime Canadian resident, a newcomer, or a temporary resident, this guide will walk you through the eligibility requirements, payment details, application process, and the upcoming GST increase in mid-2025.
What is the GST/HST Credit?
The GST/HST Credit is an integral part of Canada’s social support system, providing quarterly payments to help households with low or modest incomes offset the taxes embedded in everyday expenses such as groceries, fuel, and clothing.
Introduced to balance out the regressive nature of consumption taxes, the credit ensures those with fewer financial resources are not disproportionately burdened by these taxes.
Key Features of the GST/HST Credit
- Quarterly Payments: Issued four times a year, including the upcoming April 4, 2025 payment.
- Income-Based Calculation: Payments are determined based on your adjusted family net income (AFNI), using your previous year’s tax return (for instance, 2023 for the current cycle and 2024 for mid-2025 adjustments).
- Family-Friendly: Covers the taxpayer, their spouse or common-law partner, and dependent children under 19.
- Newcomers to Canada: This benefit can be especially beneficial for newcomers, offering financial relief during their transition to Canada.
Who is Eligible for the April 4, 2025 GST Payment?
Eligibility for the GST/HST credit depends on several factors, such as your residency status, age, and income level. It is crucial to ensure you meet these criteria to receive the payment.
General Eligibility Requirements
- Canadian Residency: You must be a Canadian resident for tax purposes at the start of the payment month (April 1, 2025). This includes permanent residents, citizens, and certain temporary residents.
- Age Requirement: You must be at least 19 years old in the month the payment is issued, with exceptions for:
- Married or common-law partners.
- Parents living with children.
- Income Threshold: Your adjusted family net income (AFNI) is used to determine both eligibility and payment amount.
Eligibility for Newcomers to Canada
Newcomers to Canada, including international students, work permit holders, or new permanent residents, can also qualify for the GST/HST credit.
- Temporary Residents: If you’ve resided in Canada for at least 183 days in the tax year and plan to stay, you may qualify as a resident for tax purposes.
- No Income?: Even if you earned little or no income in 2023, you can still qualify as long as you file your tax return or provide the necessary forms.
How to Apply for the GST/HST Credit
Getting your hands on the April 4, 2025 payment is straightforward for most Canadians, but newcomers or temporary residents may need to take extra steps.
For Existing Canadian Residents
- File Your Taxes: Your 2023 tax return is used by the CRA to assess your eligibility and calculate your payment. Even if you earned $0 in 2023, filing is mandatory to activate the credit.
- Automatic Enrollment: Once your return is processed, the CRA automatically calculates your entitlement and notifies you in July 2024 of your quarterly payment amounts.
For Newcomers to Canada
- If You Don’t Have Children: Fill out Form RC151, the GST/HST Credit and Canada Carbon Rebate Application for individuals who become residents of Canada. Submit this form to the nearest CRA tax center.
- If You Have Children: Complete Form RC66, the Canada Child Benefit Application, which is tied to the GST/HST credit. You will also need Form RC66SCH to provide information about your residency status and income.
After submission, processing may take a few weeks, so make sure to apply early.
Tips for Temporary Residents
Consult the CRA residency guidelines or call 1-800-387-1193 to confirm your status, as it can affect eligibility.
How Much Will You Receive on April 4, 2025?
The GST/HST credit varies depending on your family structure and income. Here’s an overview of the payment amounts for the July 2024–June 2025 cycle, including the April 4 disbursement:
Current Maximum Payments
| Family Type | Annual Payment | Quarterly Payment |
|---|---|---|
| Single Individual with Child | Up to $519 | $129.75 |
| Married/Common-Law Couple | Up to $680 | $170 |
| Per Child Under 19 | Up to $179 | $44.75 |
Example Scenarios
- Single individual earning below the phase-out threshold: $129.75 on April 4.
- Couple with two children: Up to $259.50 per quarter, totaling $1,038 annually.
- Single parent with one child: $174.50 per quarter.
The mid-2025 increase will further raise these amounts, providing more relief for Canadians facing rising costs.
Upcoming GST Payment Increase Effective July 2025
Starting July 2025, the GST/HST credit payments will rise based on your 2024 tax return. This increase will help offset inflation and cost-of-living pressures.
New Payment Levels
- Single individuals with a child: Up to $533 annually (previously $340).
- Couples: Up to $698 annually (combined).
- Per child: $184 annually (previously $179).
- Single Supplement: Up to $184 annually for low-income singles.
For a family of four, the increase could mean up to $1,066 annually, providing substantial financial relief.
Income Thresholds for July 2025
The income thresholds for the GST/HST credit will be adjusted by 2.7% in 2025:
- Phase-In Threshold (Single Supplement): $11,337 (up from $11,039 in 2024).
- Phase-Out Threshold: $45,521 (up from $44,324 in 2024).
If your AFNI exceeds $45,521, your credit will decrease gradually.
How the CRA Calculates Your GST Payments
The CRA calculates your GST/HST credit based on your income, which is derived from your tax return.
- Tax Return Submission: Your 2023 return (for the current cycle) or 2024 return (for mid-2025 adjustments) is used.
- Eligibility Notice: In July 2024, the CRA will mail or send electronically a notice detailing your entitlement for the upcoming cycle.
- Quarterly Disbursements: Payments will be issued on April 4, July 4, and October 3 in 2025.
What to Do if You Miss the April 4, 2025 Payment
If your payment hasn’t arrived by April 15, 2025, follow these steps:
- Check CRA My Account: Confirm eligibility and payment status.
- Update Your Information: Ensure your banking details or address are correct in your CRA profile.
- Contact the CRA: Call 1-800-387-1193 for assistance.
Other CRA Benefits Coming in April 2025
April 2025 will also bring other important CRA benefits:
- Ontario Trillium Benefit (OTB): April 10, 2025.
- Canada Carbon Rebate (CCR): April 22, 2025.
- Canada Child Benefit (CCB): April 17, 2025.
The GST/HST credit provides a vital financial cushion for low- and modest-income Canadians. With the upcoming April 4, 2025 payment and the expected increase in July 2025, this benefit is designed to help ease the burden of rising costs. Ensure you are enrolled by filing your taxes or submitting the necessary forms if you’re a newcomer or temporary resident. Keep your CRA account updated, and stay informed about these essential financial benefits.