New GST Payment Increase Confirmed In Canada For July 2025 – Everything You Need To Know

The Canadian government has announced a 2.7% increase in the Goods and Services Tax (GST)/Harmonized Sales Tax (HST) credit, effective July 2025

The Government of Canada has revealed a 2.7% boost in the GST/HST credit, which will take effect starting in July 2025. This change is designed to provide additional financial relief to Canadians with low to moderate incomes, helping them manage the rising cost of living.

Overview of the GST/HST Credit Increase

The GST/HST credit is a tax-free benefit that’s issued every three months to help eligible individuals and families recover some of the sales tax they’ve paid. Beginning July 4, 2025, the credit amounts will increase by 2.7%, aligning with inflation and offering more support during financially challenging times.

Updated GST/HST Credit Amounts for 2025

Here is a comparison of the previous and updated annual credit amounts for 2025:

Category	Previous Annual Amount	New Annual Amount (2025)
Single individuals	$519	$533
Married or common-law couples	$680	$698
Per child under 19	$179	$184

Note: These figures are calculated based on your 2023 tax return, and eligibility depends on income limits.

Payment Schedule for 2025–2026

The GST/HST credit is paid out four times a year. The scheduled dates for the 2025–2026 payment cycle are:

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

Most recipients receive their payments via direct deposit or a cheque through the mail.

Eligibility Criteria

To receive the GST/HST credit, you must meet the following conditions:

• Residency: You must be a resident of Canada for income tax purposes.
• Age: You need to be at least 19 years old. If younger, you must be married/common-law or a parent living with your child.
• Tax Filing: You must have filed your 2024 income tax return.
• Income: Your family’s adjusted net income must fall below a certain threshold, which varies by household size and marital status.

How to Apply

Most Canadians are automatically considered for the GST/HST credit once they submit their yearly income tax return. However, newcomers to Canada must complete specific forms:

• No children: Submit Form RC151.
• With children: Submit Forms RC66 and RC66SCH.

You can send these forms online using the CRA’s My Account service or by mailing them to your local tax centre.

Tips to Ensure Timely Payments

To avoid any interruptions or delays in receiving your credit, consider the following:

• Submit your 2024 tax return as early as possible.
• Make sure your personal details, like marital status and number of children, are up to date.
• Enroll in direct deposit through CRA’s My Account for quicker access to your payments.

The updated GST/HST credit for 2025 shows the federal government’s ongoing commitment to helping Canadians facing financial pressure due to inflation.

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