Canada Confirms New GST Payment Hike – Full Details for July 2025

Amid ongoing inflation and rising household expenses, the Canadian government has announced a 2.7% increase to the Goods and Services Tax (GST)/Harmonized Sales Tax (HST) credit starting July 2025. This increase is a significant step to support low- and modest-income Canadians, ensuring that inflation does not outpace their purchasing power.

This comprehensive guide explores the changes in the 2025 GST/HST payment system, including updated eligibility criteria, payment schedules, income thresholds, and application processes, especially for newcomers.

Summary Table: 2025 GST Payment Increase

What is the GST/HST Credit?

The GST/HST credit is a tax-free quarterly benefit administered by the Canada Revenue Agency (CRA) that helps eligible individuals and families offset the GST or HST they pay on goods and services. The program aims to assist:

• Single individuals with limited incomes.
• Families with children.
• Newcomers to Canada, including international students, refugees, and work permit holders.

Eligibility and benefit amounts are calculated based on the adjusted family net income (AFNI) reported on the previous year’s tax return.

2025 GST Payment Increase: Key Details

Starting July 4, 2025, Canadians will see a 2.7% increase in their GST payments. This adjustment follows the annual recalibration using the Consumer Price Index (CPI), designed to match benefits with current inflation rates. Although lower than the 4.7% increase in 2024, it still represents a meaningful financial boost.

New Maximum Payment Amounts for 2025

• Single individuals: Up to $349 annually (previously $340)
• Per child: Up to $184 annually (previously $179)
• Couples: Up to $698 annually combined
• Single supplement: $184

Example Calculations:

• Family of four (2 adults, 2 children): Up to $1,066 per year ($266.50 per quarter)
• Single parent with 1 child: Up to $533 per year ($133.25 per quarter)

Updated Income Thresholds for 2025

Eligibility for the GST/HST credit is phased out at higher income levels. These thresholds are also adjusted annually for inflation:

• Phase-in threshold for single supplement: $11,337 (previously $11,039)
• Phase-out threshold: $45,521 (previously $44,324)

Above these limits, the GST/HST credit is reduced or eliminated entirely.

Who Qualifies for the 2025 GST/HST Credit?

General Eligibility:

You must:

• Be a Canadian resident for tax purposes during the payment month and the month before.
• Be 19 years of age or older, or meet one of these conditions if under 19:
  • Married or common-law
  • Parent living with your child

Newcomers to Canada:

New permanent residents, refugees, international students, and work permit holders can apply during their first year in Canada.

Who Is Not Eligible?

You will not qualify if:

• Your income exceeds the phase-out threshold.
• You are not a resident for tax purposes.
• You did not file your 2024 income tax return.

GST Payment Dates for 2025–2026

GST/HST credits are paid quarterly. For 2025–2026, the CRA has confirmed the following schedule:

• July 4, 2025 (First payment with the 2.7% increase)
• October 3, 2025
• January 5, 2026
• April 3, 2026

If your payment is delayed by more than 10 business days, contact the CRA directly.

How to Apply for the GST/HST Credit in 2025

Most Canadians are automatically considered for the GST/HST credit after filing their 2024 income tax return. However, newcomers must apply manually:

For Newcomers Without Children:

• Submit Form RC151 (GST/HST Credit Application) to your tax centre.

For Newcomers With Children:

• Submit both:
  • Form RC66 (Canada Child Benefits Application)
  • Form RC66SCH (Status in Canada and Income Information)

These forms can be submitted online through the CRA’s My Account portal or mailed.

Tips for Successful Payment

• File your 2024 taxes on time to avoid delays.
• Keep your marital status, child dependents, and direct deposit information up-to-date.
• Set up direct deposit for faster, more secure payments.

What If You Don’t Receive Your GST Payment?

If you’re eligible but did not receive a payment:

• Check your CRA My Account for payment status.
• Ensure your 2024 tax return has been filed and accepted.
• Verify your banking and mailing details.
• If necessary, call the CRA at 1-800-387-1193.

Frequently Asked Questions (FAQs)

1. When does the 2025 GST payment increase take effect?

• The increase is effective starting July 4, 2025.

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

• You must be a Canadian resident for tax purposes, 19 or older (or meet specific criteria if under 19), and have a 2024 adjusted family net income below $45,521.

3. What are the payment dates for GST?

• July 4, 2025
• October 3, 2025
• January 5, 2026
• April 3, 2026

4. Do international students qualify for the GST payment?

• Yes, international students can apply using Form RC151 (without children) or Form RC66 (with children).

5. 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, and call CRA if issues persist.

6. How much can a family of four receive in 2025?

• Up to $1,066 annually or $266.50 per quarter, depending on income and number of dependents.

Final Thoughts

The 2025 GST/HST Credit increase is a timely intervention for Canadian households facing higher costs. With inflation impacting essentials from groceries to housing, this benefit helps stretch limited incomes further.

Whether you’re a long-time resident or newly arrived in Canada, understanding your eligibility, filing requirements, and payment timelines can ensure you don’t miss out on this valuable financial support.

Official CRA Website: www.canada.ca

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