Canada Announces Bonus GST Credit for May 2025 – How Much You’ll Get and Who’s Eligible
Canada Announces Bonus GST Credit: In May 2025, the Canada Revenue Agency (CRA) announced an inflation-adjusted increase to the Goods and Services Tax/Harmonized Sales Tax (GST/HST) credit, effective from July 2025. This adjustment aims to provide additional financial support to low- and modest-income Canadians amid rising living costs. This article will break down everything you need to know about this increase, including the updated amounts, eligibility criteria, payment schedules, and application process.
Canada Announces Bonus GST Credit
| Topic | Details |
|---|---|
| New GST/HST Credit Amounts | Single individuals: Up to $349, Married couples: Up to $698, Per child: Up to $184, Single supplement: Up to $184 (Immigration News Canada) |
| Eligibility Requirements | Canadian resident, 19 years or older, income below phase-out threshold (Canada.ca) |
| Payment Schedule | January 3, April 4, July 4, October 3, 2025 (Lotly) |
| Application Process | Automatic for most; newcomers may need Form RC151 or RC66 (NerdWallet) |
The updated GST/HST credit for 2025 aims to provide meaningful support to Canadians facing the pressures of rising living costs. By understanding the eligibility criteria and maximizing your benefits, you can make the most of this financial support.
What is the GST/HST Credit?
The GST/HST credit is a tax-free quarterly payment designed to help low- and modest-income individuals and families offset the GST or HST they pay on goods and services. It’s a vital financial support for many Canadians, providing relief amid rising living costs and inflation.
Why the Increase in 2025?
The CRA periodically adjusts the GST/HST credit amounts to keep pace with inflation and economic changes. The increase announced for July 2025 reflects this ongoing effort to support Canadians as they navigate higher living expenses, including housing, groceries, and transportation.
Updated GST/HST Credit Amounts (Effective July 2025)
Based on your 2024 tax return, the new maximum annual GST/HST credit amounts are:
- Single individuals: Up to $349 (previously $340)
- Married or common-law couples: Up to $698 (combined)
- Per child under 19: Up to $184 (previously $179)
- Single supplement: Up to $184 for eligible low-income singles
For instance, a family of four (two adults and two children) could receive up to $1,066 annually, or $266.50 per quarter.
Eligibility Criteria
To qualify for the GST/HST credit, you must meet the following criteria:
- Age: At least 19 years old
- Residency: Canadian resident for income tax purposes
- Income: Adjusted family net income below certain thresholds (phasing out around $45,521 for 2023)
Young adults under 19 may still qualify if they have (or had) a spouse or common-law partner or if they’re a parent living with their child.
Payment Schedule for 2025
The GST/HST credit is distributed quarterly. Here are the payment dates for 2025:
- January 3, 2025
- April 4, 2025
- July 4, 2025 (first payment reflecting the increased amounts)
- October 3, 2025
Canada Announces Bonus GST Credit: How to Apply for the GST/HST Credit?
Most Canadians are automatically considered for the GST/HST credit when they file their annual tax return, even if they have no income to report. However, newcomers to Canada must apply using:
- Form RC151: For individuals without children
- Form RC66: For individuals with children
Make sure your personal information, like marital status and number of children, is up to date with the CRA to receive the correct payment amounts.
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FAQs on Canada Announces Bonus GST Credit
1. How often is the GST/HST credit paid?
The credit is paid quarterly, in January, April, July, and October each year.
2. Can newcomers to Canada receive the GST/HST credit?
Yes, but they need to apply separately using the appropriate forms.
3. What happens if my income changes mid-year?
If your income increases, your GST/HST credit amount may decrease in the following year.
