GST/HST credit - Overview - Canada.ca

Quick Facts

Payment schedule: Quarterly (July, October, January, April) via direct deposit or mailed cheque.
Tax-free: Payments are non-taxable and do not affect other federal or provincial benefits.
Automatic assessment: No separate application required—file a tax return and CRA calculates eligibility automatically.
Integrated benefits: Provinces and territories may combine their sales tax credits with the federal payment, resulting in larger deposits.

Program Overview

The Goods and Services Tax/Harmonized Sales Tax (GST/HST) credit is a cornerstone of Canada’s affordability measures. It refunds a portion of sales tax paid by low- and modest-income individuals and families. The credit is income-tested, meaning the lower your adjusted family net income (AFNI), the higher your credit. CRA reassesses eligibility every July based on the previous year’s return, ensuring payments reflect current financial realities.

Because the credit arrives quarterly, many households use it to tackle seasonal expenses—back-to-school costs in August, winter heating bills in January, or tax-time savings in April. Understanding how to maintain eligibility and maximize related provincial credits ensures you capture every available dollar.

Eligibility Snapshot

Residency: You must be a resident of Canada for income tax purposes at the beginning of the month in which CRA issues a payment.
Age: At least 19 years old, or you have (or had) a spouse/common-law partner, or you are (or were) a parent living with your child.
Tax filing: File a return every year, even with zero income. Both partners must file so CRA can compute family net income.
Social insurance number: Required for assessment. Newcomers should apply for a SIN immediately upon arrival.

Benefit Calculation

For the July 2024–June 2025 benefit year, the maximum annual credit is $519 for singles, $680 for married/common-law couples, plus $179 for each child under 19. The credit is reduced by 5% of family net income above $42,335. Provincial components (e.g., Ontario Sales Tax Credit, BC Climate Action Tax Credit) may piggyback onto the same payment schedule.

Application Roadmap

File your tax return: Use NETFILE-certified software, a tax professional, or the Community Volunteer Income Tax Program. Ensure both partners file.
Complete Schedule 6 (if prompted): Some returns require additional information about children for provincial credits.
Update marital status: Report changes to CRA immediately to avoid over/under-payments. Use CRA My Account or Form RC65.
Provide direct deposit details: Update banking info in My Account to prevent payment delays or lost cheques.
Check CRA correspondence: CRA may request proof of residency or custody. Respond within the stated timeframe to avoid payment suspension.

Timeline Expectations

Tax filing deadline: April 30 (June 15 for self-employed, but balances still due April 30). Filing early ensures July payment reflects current income.
Processing time: CRA typically assesses returns within two weeks (NETFILE) or eight weeks (paper). GST/HST payments adjust automatically on the next scheduled date.

Tips and Tricks to Maximize the Credit

File even with zero income: Students, newcomers, and stay-at-home parents often miss payments by skipping tax returns. File annually to remain eligible.
Coordinate with spouse: CRA calculates based on combined income. If one partner files late, payments pause. Set shared reminders.
Update address promptly: Move? Update My Account or call CRA. Returned mail can lead to suspended payments until your address is verified.
Review Notices of Assessment: CRA outlines your annual credit on the NOA. Compare to deposits to ensure accuracy.
Claim dependents properly: If you share custody, both parents may receive partial credits. Submit Form RC66-1 to document shared custody arrangements.
Leverage provincial supplements: Some provinces issue climate or energy rebates alongside the GST/HST credit. Understand eligibility criteria (e.g., BC requires residency on December 31 of previous year).
Plan around income fluctuations: If your income drops significantly mid-year (job loss, parental leave), request a recalculation using Form RC65. Provide proof to expedite adjustments.
Newcomer documentation: Provide immigration documents, lease agreements, or utility bills if CRA requests proof of residency. Keep copies ready.
Monitor My Account: The portal shows upcoming payment dates, amounts, and provincial components. Use it to verify deposits and track changes.
Set aside funds: Because payments are quarterly, consider saving a portion each month so you are not caught off guard between deposits.

Mistakes to Avoid

Missing the July recalculation: If you file after June, your July payment may be delayed or based on older income data.
Ignoring CRA reviews: Failing to provide requested documents can result in canceled payments and demands for repayment of previous credits.
Not reporting marital status changes: Cohabitation counts as common-law for tax purposes after 12 months (or sooner with a child). Misreporting can lead to penalties.
Overlooking child eligibility: Children turn 19? Inform CRA to prevent overpayments you must repay later.
Using outdated banking info: Closed accounts cause returned payments. Update details before moving banks.

Coordinating with Other Benefits

Canada Child Benefit: Filing taxes qualifies you for both programs. Budget combined deposits to manage monthly cash flow.
Canada Workers Benefit: Low-wage workers may receive advance payments; integrate with GST/HST credit for consistent support.
Provincial rebates: Ontario Trillium Benefit, Alberta Affordability payments, and similar programs may ride along with the GST/HST schedule.

Budgeting Ideas

Quarterly expense planning: Use payments to cover quarterly bills (insurance, property taxes) or seasonal needs.
Emergency fund boost: Direct the credit to a high-interest savings account, building a cushion without straining monthly budgets.
Debt reduction: Apply toward high-interest credit card or payday loan balances to reduce interest costs.
RESP or TFSA contributions: Even small quarterly deposits grow over time when invested or saved tax-free.

After Approval Checklist

Confirm direct deposit receipt on payment dates. If not received within 10 days, contact CRA.
Record payment amounts and provincial supplements in a spreadsheet for tracking.
Set annual reminders to review NOA and compare to the CRA “Benefits and credit payments” page.
Retain copies of tax returns and supporting documents for at least six years in case of audit.

Helpful Contacts

CRA GST/HST Credit line: 1-800-387-1193.
CRA My Account: Manage personal info, view payments, and upload documents.
Community Volunteer Income Tax Program: Free filing support for eligible individuals.
Settlement organizations: Assist newcomers with tax literacy and CRA correspondence.

The GST/HST credit may seem modest, but combined with provincial supplements it can cover essential expenses and buffer against inflation. Staying tax compliant, monitoring CRA communications, and coordinating the credit with other benefits ensures you capture its full value.