As 2025 unfolds, the Goods and Services Tax (GST) continues to be a hot topic across Canada. With ongoing speculation about a possible rate hike and changes to GST-related benefits, many Canadians are eager for clarity. The GST rate itself remains unchanged at 5%, but there are important updates to the GST/HST credit payments that could impact millions of households.
In this article, we break down the key changes to GST credit eligibility and payment amounts, helping you understand how they affect individuals, families, and small businesses. You’ll also find helpful tips to maximize your benefits, a brief look at the history of GST in Canada, and insights into what might come next in the evolving tax landscape.
GST Increase News for 2025 in Canada
| Topic | Details |
| GST Rate | No changes; remains at 5% |
| GST/HST Credit Amounts | Adjusted for inflation; single adults receive up to $519 annually |
| Payment Dates for 2025 | January 3, April 4, July 4, and October 3 |
| Eligibility | Based on 2023 tax return and adjusted family net income. CRA Eligibility Details. |
GST Increase News 2025 in Canada: No Rate Hike, But Credit Boost Explained
In 2025, the Goods and Services Tax (GST) remains a focal point for millions of Canadians seeking clarity on tax changes and benefits. Despite speculation, the GST rate remains steady at 5%, with no increase announced. However, there’s good news—the GST/HST credit amounts have been updated, providing additional relief to low- and moderate-income households.
This article explains what’s changing, who qualifies, and how you can ensure you get the most from your GST/HST credit this year.
What Is GST and Why Does It Matter?
GST is a 5% federal tax applied to most goods and services in Canada. Combined with provincial taxes or HST (Harmonized Sales Tax), it supports essential public services such as:
- Healthcare
- Education
- Infrastructure
To support lower-income families, the government provides the GST/HST credit—a tax-free, quarterly payment to help offset the cost of sales taxes.
A Quick Look Back: GST History
Introduced in 1991, GST replaced the manufacturers’ sales tax to make the system more equitable. Over time, many provinces adopted the HST model, merging federal and provincial taxes into one rate for easier compliance and administration.
No GST Rate Hike in 2025 – But Key Credit Updates
While no GST rate increase is happening, the government has adjusted the GST/HST credit for inflation to support Canadians facing rising living costs.
Updated GST/HST Credit Amounts for 2024–2025
Eligible Canadians will receive the following annual amounts:
- Single individual: Up to $519
- Married/common-law couple: Up to $680
- Each child under 19: Additional $179
These amounts will be distributed quarterly from July 2024 to June 2025.
Who Is Eligible for GST/HST Credit?
To qualify, you must:
- Be a Canadian resident for tax purposes
- Be at least 19 years old (or have a spouse/partner or be a parent)
- File your 2023 tax return—even with zero income
The credit amount is calculated based on your adjusted family net income.
How to Get the Credit – No Separate Application Needed
There’s no separate form to apply. When you file your tax return, the Canada Revenue Agency (CRA) automatically evaluates your eligibility. The credit is included in your Notice of Assessment.
GST/HST Credit Payment Dates for 2025
Payments will be issued on:
- January 3, 2025
- April 4, 2025
- July 4, 2025
- October 3, 2025
Choose direct deposit for faster payments or receive a cheque if not enrolled.
How to Check Your Payment Status
Use the CRA My Account portal to:
- Track your payment status
- View past payments
- Update your personal details
If payments are delayed, ensure your contact and banking information is up to date.
Why Inflation Matters
The annual GST/HST credit is indexed to inflation. As the cost of living rises, these adjustments ensure households maintain their purchasing power.
Example:
A single parent with two children receives:
- Base credit: $519
- Child amount: $179 × 2 = $358
- Total: $877 annually, or $219.25 per quarter
This can help cover essentials like groceries, clothing, or utilities.
Global Comparison: How Canada’s GST Stands
Canada’s 5% GST rate is one of the lowest globally. For example:
- UK VAT: 20%
- Australia GST: 10%
This keeps everyday goods more affordable for Canadians while still funding key services.
5 Tips to Maximize Your GST/HST Credit
- File Your Taxes Early – Delays can mean missed payments
- Update Personal Info – Marital status and dependents affect your credit
- Opt for Direct Deposit – Get your money faster and more securely
- Check CRA Updates – Stay informed on tax changes and credit increases
- Plan Around Payments – Use quarterly credits to help budget monthly needs
Frequently Asked Questions (FAQs)
1. Will the GST rate go up in 2025?
No, the GST rate remains unchanged at 5% in 2025. The latest updates are related to GST/HST credit amounts, which have been adjusted to reflect inflation.
2. How is eligibility for the GST/HST credit determined?
Eligibility is based on your adjusted family net income, marital status, and whether you’ve filed your 2023 tax return. The Canada Revenue Agency (CRA) uses this information to assess your qualification.
3. Are GST/HST credit payments taxable?
No. The GST/HST credit is a tax-free benefit, which means it does not count as income and does not need to be reported on your tax return.
4. What should I do if I didn’t receive a GST payment?
If you missed a payment or believe there’s an error, log into your CRA My Account or call the CRA directly. Be sure your banking, address, and personal details are up to date to avoid delays.
5. Is it possible to receive missed or retroactive payments?
Yes. If you were eligible for the GST/HST credit in previous years but didn’t receive it, you may still be able to claim retroactive payments. Contact the CRA for guidance on how to proceed.
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