The GST/HST Credit is a critical lifeline for many Canadians with low or moderate incomes, helping offset the burden of sales taxes on everyday goods and services.
As of May 2025, a one-time relief payment will be added to the regular quarterly payments, bringing extra financial support to millions of households struggling with inflation and rising living costs.
This article explores the updated credit amounts, eligibility criteria, payment dates, and how this program fits into the broader social safety net in Canada.
What Is the GST/HST Credit?
The Goods and Services Tax/Harmonized Sales Tax (GST/HST) credit is a tax-free quarterly payment issued by the Canada Revenue Agency (CRA). It aims to assist individuals and families by compensating for the GST/HST they pay on goods and services.
The credit is automatically calculated based on information in your income tax return and is adjusted annually based on your income, family size, and marital status.
Eligibility for the GST/HST Credit in May 2025
To qualify for the May 2025 GST/HST credit, the following criteria must be met:
- Residency: You must be a resident of Canada for tax purposes.
- Age: You must be 19 years or older by December 31, 2024.
- Tax Return: You must have filed a 2023 tax return, even if you had no income.
- Income Thresholds:
- Singles: Must earn below $50,000 to qualify for the full credit.
- Families: Must earn below $150,000 combined to receive the full amount.
- Family Composition: Additional amounts are provided for each child under 19.
Even if your income slightly exceeds these thresholds, you may still receive a partial credit, as the amount is gradually reduced with rising income.
May 2025 GST/HST Credit Breakdown
In May 2025, Canadians will receive two payments:
- Regular Quarterly Payment
- One-Time Relief Payment due to rising living costs
Regular GST/HST Credit Amounts (2024–2025 Cycle)
| Category | Annual Amount | Quarterly Amount (Approx.) |
|---|---|---|
| Single Individual | $519 | $130 |
| Married/Common-law | $680 | $170 |
| Per Child (under 19) | $179 | $44.75 |
One-Time Relief Payment (May 2025)
| Category | Amount |
|---|---|
| Eligible Single Individual | $250 |
| Eligible Couple | $250 |
| Per Dependent Child (U19) | $250 |
Total Possible Payment in May 2025
| Household Type | Regular Payment | One-Time Relief | Total (May 2025) |
|---|---|---|---|
| Single Person | $130 | $250 | $380 |
| Couple with No Children | $170 | $250 | $420 |
| Couple with 2 Children | $170 | $750 | $920 |
These amounts provide a substantial boost to help households cope with inflation and rising costs.
Payment Schedule
The CRA typically issues GST/HST credits quarterly, but the May 2025 payment will include the relief amount alongside the normal installment.
2025 Payment Dates
- April 2025 – Regular quarterly payment
- May 2025 – One-time $250 relief payment
- July 2025 – Next quarterly payment
- October 2025 – Final payment for the fiscal year
Payments are made via direct deposit or mailed cheque, depending on the information you have on file with the CRA.
How the Credit Is Calculated
Your GST/HST credit is based on the following factors:
- Net Income: Lower income means a higher benefit.
- Family Size: More dependents = higher credit.
- Tax Filing Status: Single, married, or common-law partnership affects thresholds.
- Children under 19: Additional credits are issued for each qualifying child.
Ensure your personal details (income, marital status, children) are up to date on your tax return to receive the full entitlement.
How to Apply
Applying for the GST/HST credit is simple:
- File Your Income Tax Return: This is the only way to apply.
- Update Personal Info: Make sure the CRA has accurate family and banking info.
- Wait for CRA Assessment: The CRA will automatically determine if you qualify and send the payment.
Other Provincial Credits Linked to GST/HST
The CRA administers provincial and territorial programs that may add to your GST/HST credit:
- Ontario: Ontario Sales Tax Credit
- British Columbia: Climate Action Tax Credit
- New Brunswick: Provincial HST Credit
- Nova Scotia: Affordable Living Tax Credit
These are typically combined with federal credits into a single payment.
The May 2025 GST/HST Credit Update offers critical financial support to millions of Canadians, especially those facing increased living expenses. The inclusion of a one-time $250 relief payment, alongside regular payments, demonstrates a responsive approach to economic pressure.
To ensure you don’t miss out, file your 2023 tax return, keep your information current, and monitor your CRA account for updates. This simple yet impactful benefit can make a significant difference in managing household expenses for the rest of the year.
FAQs
Do I have to apply separately for the one-time May 2025 payment?
No. If you’re eligible for the regular GST/HST credit, you’ll receive the one-time payment automatically.
What if I haven’t filed my 2023 tax return yet?
File as soon as possible. The CRA requires it to assess your eligibility and issue payments.
Can new immigrants to Canada get the credit?
Yes, but they must complete additional forms and meet the same residency and income requirements.