New GST Payment Increase In Canada Effective July 2025

admin

Last Updated On 10 May 2025, 8:57 AM EDT (Toronto Time)

Exciting news for Canadians! Starting July 2025, the Goods and Services Tax (GST payment) will increase by 2.7%, offering vital financial relief to low- and modest-income households.

With inflation driving up costs for essentials like groceries, gas, and housing, this tax-free quarterly payment will put more money back into your pocket.

Whether you’re a single individual, a family, or a newcomer to Canada, this guide breaks down the 2025 GST payment changes, eligibility, amounts, and how to ensure you receive your share.

Read on to discover how this boost can ease your financial burden and help you thrive in 2025.

The GST/HST Credit is a tax-free quarterly payment from the Canada Revenue Agency (CRA) designed to offset the sales taxes paid by low- and modest-income Canadians.

Recalculated annually based on your adjusted family net income (AFNI) reported while filing taxes and household size, this benefit supports:

Singles facing rising living expenses.
Families managing costs for children.
Newcomers, including international students, refugees, and work permit holders.

This credit ensures those who need it most get financial support without the hassle of taxable income.

2025 GST Payment Increase: Key Details

To keep pace with inflation, the CRA adjusts the GST/HST Credit annually using the Consumer Price Index (CPI).

For 2025, expect a 2.7% increase over 2024 amounts, effective from July 4, 2025.

While slightly lower than last year’s 4.7% boost, this adjustment offers meaningful relief to millions of Canadians.

Based on your 2024 tax return, here’s what you could receive annually:

Single individuals: Up to $349 (up from $340 in 2024).
Per child: Up to $184 (up from $179 in 2024).
Couples: Up to $698 (combined for both partners).
Single supplement: Up to $184 for eligible low-income singles.

Examples:

A family of four (two adults, two children) could receive up to $1,066 annually ($266.50 per quarter).
A single parent with one child could get up to $533 annually ($133.25 per quarter).

Eligibility depends on your AFNI, which will also rise by 2.7% in 2025:

Phase-in threshold for single supplement: $11,337 (up from $11,039 in 2024).
Phase-out threshold (where credit begins to reduce): $45,521 (up from $44,324 in 2024).

If your income exceeds the phase-out threshold, your payment decreases gradually.

Beyond the maximum threshold, you may not qualify.

Most Canadian residents for tax purposes are eligible, provided they meet these criteria:

General Eligibility

You’re a Canadian resident for income tax purposes in the month before and at the start of the payment month.
You’re 19 or older in that month, or if under 19, you:
- Are (or were) married or in a common-law relationship.
- Are a parent living with your child (currently or previously).

Newcomers to Canada

Newcomers, including permanent residents, refugees, international students, and work permit holders, can apply during their first year in the country.

However, they must submit specific forms (see “How to Apply” below).

You won’t qualify if:

Your AFNI exceeds the phase-out threshold.
You’re not a Canadian resident for tax purposes.
You did not file your 2024 tax return.

Payments are issued quarterly on the 5th of the month (or the prior Friday if the 5th is a weekend). Mark these dates:

July 4, 2025 (first increased payment)
October 3, 2025
January 5, 2026
April 3, 2026

If your payment doesn’t arrive within 10 working days, contact the CRA at 1-800-387-1193.

Most Canadians are automatically enrolled after filing their 2024 tax return, even with no income. Newcomers, however, must apply manually:

Newcomers Without Children

Complete Form RC151 (GST/HST Credit Application).
Submit it to your local tax centre for the year you became a resident.

Newcomers With Children

Use Form RC66 (Canada Child Benefits Application) and Form RC66SCH (Status in Canada and Income Information).
Apply via CRA’s My Account or by mail.

Pro Tips

Must have filed your 2024 taxes timely to ensure accurate calculations. Your GST payment could be delayed if you file your taxes late.
Update your marital status, number of children, or banking details with the CRA.
Set up direct deposit for faster payments.

If you’re eligible but miss a payment:

Check your CRA My Account for eligibility and status.
Confirm your 2024 tax return was filed and your details are current.
Verify your direct deposit information.
Call the CRA at 1-800-387-1193 if issues persist.

The 2025 GST/HST Credit increase is a critical step to support Canadians amid rising costs.

Whether you’re a long-time resident or a newcomer, this tax-free benefit can stretch your budget further.

Check if you filed your 2024 taxes, update your CRA details, and apply if you’re new in the country.

With the first increased payment arriving July 4, 2025, now’s the time to prepare for this financial boost.

Frequently Asked Questions (FAQs) About GST Payments

How do I know if I’m eligible for the GST/HST Credit?

You qualify if you’re a Canadian resident for tax purposes, 19 or older (or meet specific conditions if under 19), and your adjusted family net income is below the phase-out threshold ($45,521 for 2025).

What are the payment dates for GST?

July 4, 2025 (first increased payment)
October 3, 2025
January 5, 2026
April 3, 2026

Do international students qualify for the GST payment?

Yes, international students and other newcomers can apply during their first year using Form RC151 (no children) or Form RC66 (with children).

What should I do if I don’t receive my GST payment?

Wait 10 working days after the payment date, check your CRA My Account, ensure your tax return and details are updated, and contact the CRA at 1-800-387-1193 if needed.

How much GST/HST credit can a family of four expect in 2025?

A family of four could receive up to $1,066 annually ($266.50 per quarter), depending on their adjusted family net income.

Gagandeep Kaur Sekhon

Gagandeep Kaur Sekhon moved to Canada in 2010 on a study visa. She navigated through the ups and downs of her student life and gained her permanent residency in 2015. Today, she is a proud Canadian citizen residing in Calgary, Alberta. She is mother of 2 beautiful daughters and making her difference through writing and guidance at INC – Immigration News Canada.