The Canada Revenue Agency (CRA) has announced the GST/HST credit payment amounts for 2025, offering eligible Canadians quarterly tax-free payments to help offset goods and services tax expenses.
Understanding the GST/HST Rebate
The GST/HST rebate is designed to assist low- and modest-income households by providing quarterly payments.
For the period from July 2024 to June 2025, single Canadians can receive up to $519 annually ($129.75 quarterly), while couples may receive up to $680 annually ($170 quarterly).
Families with children under 19 are eligible for an additional $179 per child annually ($44.75 quarterly).
Eligibility Criteria
To qualify for the GST/HST rebate, you must meet the following conditions:
- Age and Residency: Be at least 19 years old (exceptions apply for younger parents or those with spouses) and a Canadian resident.
- Income Level: Have a family net income within the thresholds set by the CRA.
- Tax Filing: Ensure your taxes are filed, as the CRA automatically assesses eligibility based on tax returns.
Payment Schedule
The GST/HST rebate is distributed quarterly, typically on the fifth day of July, October, January, and April. The exact amount depends on your adjusted family net income and the number of children under 19 registered for the Canada Child Benefit and GST/HST credit.
Impact of Life Changes
Significant life events can influence your rebate amount:
- Marital Status: Changes can affect combined family net income calculations.
- Income Adjustments: Increases or decreases in income may alter eligibility or payment amounts.
- Child Custody Arrangements: Parents sharing custody may each be eligible for half of their child’s GST/HST credit.
It’s essential to inform the CRA of any such changes to ensure accurate rebate calculations.
| Recipient | Annual Amount | Quarterly Payment | Additional per Child | Quarterly per Child |
|---|---|---|---|---|
| Single Individual | Up to $519 | $129.75 | N/A | N/A |
| Married/Common-Law | Up to $680 | $170 | $179 | $44.75 |
| Family with 1 Child | Up to $680 | $170 | $179 | $44.75 |
| Family with 2 Children | Up to $680 | $170 | $358 | $89.50 |
Investing Your Rebate
While the GST/HST rebate provides immediate financial relief, consider investing these funds to build long-term wealth.
Low-cost exchange-traded funds (ETFs), such as the Vanguard S&P 500 Index ETF (TSX:VSP), offer exposure to a diversified portfolio of large U.S. companies.
With a management fee of 0.09%, the VSP ETF includes tech giants like Apple, Microsoft, Nvidia, and Amazon. An investment of $10,000 in the VSP ETF in late 2012 would be worth more than $45,000 today.
Conclusion
The 2025 GST/HST rebate offers substantial support to eligible Canadians, with quarterly payments up to $129.75 for individuals and $170 for couples.
By understanding the eligibility criteria and payment schedules, you can maximize the benefits. Additionally, investing your rebate wisely can contribute to long-term financial growth.
FAQs
What is the GST/HST rebate?
The GST/HST rebate is a tax-free quarterly payment from the CRA designed to help low- and modest-income Canadians offset the goods and services tax expenses.
How do I apply for the GST/HST rebate?
There’s no need to apply separately. When you file your taxes, the CRA automatically assesses your eligibility for the rebate.
When are the GST/HST rebate payments made?
Payments are typically issued on the fifth day of July, October, January, and April each year.
