The federal government is set to distribute the first benefits of the new year this Friday, issuing Goods and Services Tax (GST) or Harmonized Sales Tax (HST) credits to eligible Canadians. This marks the third quarterly payment for the 2023 base year, targeting individuals and families with low and modest incomes.
Highlights
- The federal government is issuing GST/HST credit payments on Friday, March 2025, to help low- and modest-income Canadians offset sales taxes.
- Individuals earning under $70,000 in adjusted family net income may qualify.
- Next Payment Date is scheduled for April 4, 2025.
These tax-free quarterly payments are designed to help offset the GST or HST expenses incurred on various goods and services. The Canada Revenue Agency (CRA) calculates the GST/HST credit based on factors such as marital status, adjusted family net income, and the number of children under 19 registered for the Canada Child Benefit and the GST/HST credit. Additionally, these credits may encompass payments from provincial and territorial programs.
For the period from July 2024 to June 2025, the maximum annual GST/HST credit amounts are:
- Single individuals without children: Up to $519
- Married or common-law couples without children: Up to $680
- Each child under 19 years of age: Up to $179
Consequently, a single individual without children could receive up to $519 annually, while a couple with two children under 19 could receive up to $1,038. The payment scheduled for this Friday will represent approximately one-quarter of the total annual entitlement, as determined by the 2023 tax return.
Eligibility for the GST/HST credit generally requires individuals to be Canadian residents for tax purposes and meet at least one of the following criteria:
- Be at least 19 years old
- Have (or had) a spouse or common-law partner
- Be (or have been) a parent and live (or lived) with their child
It’s important to note that the GST/HST credit is income-tested. For the 2023 base year, the credit begins to phase out when the adjusted family net income exceeds $42,335, with the phase-out thresholds varying based on family size and marital status.
The CRA typically issues GST/HST credit payments on a quarterly basis, with the next payment scheduled for April 4, 2025.
0 responses