Canada Increases GST/HST Credit for 2025: More Support for Low and Middle-Income Families
The Canadian government has announced an increase in the Goods and Services Tax (GST/HST) credit for 2025 to help low- and middle-income Canadians offset the cost of taxes on their purchases. This adjustment comes in response to rising living expenses and will see a 2.7% increase compared to 2024.W
hat’s Changing in the 2025 GST/HST Credit?
The increased payments will provide additional financial support for individuals and families. Here’s how the changes break down:
1. Increased Payment Amounts
- Single individuals: Up to $349 per year, an increase from $340 in 2024.
- For each child: Payments rise to $184 per year, up from $179 in the previous year.
- Couples: Maximum combined payment of $698 per year.
- Single supplement: Individuals with low income will receive up to $184 per year.
For example:
- A family of four (two adults and two children) could receive up to $1,066 per year, or $266.50 every three months. See more details here.
- A single parent with one child may receive up to $533 per year, or $133.25 every three months.
- 2. Updated Income Thresholds for 2025
Income thresholds have also been adjusted by 2.7% for 2025:
- Single supplement threshold: Now $11,337, up from $11,039 in 2024.
- Net family income threshold (where the phase-out begins): Now $45,521, compared to $44,324 the previous year.
If a family’s net income exceeds these thresholds, their GST/HST payments will gradually decrease and could be phased out completely. Learn more here.3
. Who Is Eligible for the GST/HST Credit?
Most Canadian residents automatically qualify for the GST/HST credit if they meet these conditions:
- Must be a resident of Canada for income tax purposes.
- Must be at least 19 years old or meet special criteria (such as having a child or being married).
Individuals under 19 qualify if they:
- Are married or have a common-law partner, or
- Have a child who lives with them.
Check full eligibility details here.4
. Important Information for Newcomers to Canada
Newcomers to Canada, including international students and work permit holders, are encouraged to apply for GST/HST payments. To qualify, they must:
- Be residents of Canada for income tax purposes.
- Meet the same eligibility criteria as other residents.
Apply now here.H
ow to Receive the Increased GST/HST Credit in 2025?
To benefit from this increase, Canadians must file their 2024 tax returns on time, as the higher payments will begin in July 2025.
For more information and updates, visit the official CRA website here.