Inflation is at its peak in 2025. From food items to fuel and essential services, the prices of everything are skyrocketing. In such a situation, the GST / HST Credit scheme of the Government of Canada is no less than a relief for those who are low or middle income. This scheme gives back a part of the amount paid as tax, so that the common people can get some relief.
There have been some changes in this credit in June 2025, including an increase of 2.8%. In this article, we will know in detail who is eligible, how much payment will be received, and when this money will come to your account. If you live alone or with family, this information can be very useful for you.
What is GST / HST Credit?
GST (Goods and Services Tax) and HST (Harmonized Sales Tax) are the taxes that are charged on majority of goods and services in Canada. Such taxes are imposed on every citizen, however, the individuals who have low income experience these taxes significantly. In such a situation, the government has created a scheme in the form of GST/HST Credit, in which tax-free payments are made on a quarterly basis to eligible people.
This scheme is automatic – you do not have to apply for it separately. Just file your income tax return and if you are eligible, the money will be automatically received.
GST/HST Credit June 2025 – At a Glance
| Category | Details |
|---|---|
| Scheme Name | Canada GST/HST Credit |
| Eligibility Age | 19 years or older (or married/parents) |
| Annual payment (single person) | Maximum $337 |
| Annual payment (couple) | Maximum $704 |
| Per child payment | Maximum $185 (for under 19 years of age) |
| Payment Dates | June 5, October 5, January 5, April 5 |
| Application required? | No – eligibility is automatically determined from tax returns |
| Income limit (single person) | About $52,000 |
| Income limit (family) | $58,000–$65,000 (depending on number of children) |
| Type of payment | Tax free; check or direct deposit |
What will be the difference in June of 2025?
In 2025, because of the inflation, the government has increased the GST/HST credit by 2.8 percent increase. Although this percentage can not be called a significant rise, every dollar concerns the family with low income or with the fixed-income family.
Example:
A two-adult-two-child family will be able to obtain tax-free payment exceeding 1,000 dollars on a yearly basis. The payments are paid directly into a bank account thus it becomes convenient to manage expenses at the proper time.
Payment dates: On which days will be paid?
The GST/HST credit is paid quarterly. The payments due to be made in 2025-2026 are:
5 June 2025
5 October 2025
5 January 2026
5 April 2026
In case you have signed up to have your money mailed through direct deposit the amount will directly get deposited into your account. Otherwise, payment will be made by cheque. Direct deposit is the best method for quick and secure payments.
Who can benefit out of this scheme?
In order to claim the GST/HST credit you are required to meet the following conditions:
- You have to be 19 years or above
- You must be a resident of Canada (for tax purposes)
- You must have filed a tax return for the previous year
- Your annual income must be within the limits
Income limits:
- Single person: Up to $52,000
- Family: $58,000 to $65,000 (depending on number of children)
If your income is slightly above these limits, you can still get a partial credit.
How to apply?
There is no separate application required for this scheme. All you need to do is file your annual income tax return. The CRA (Canada Revenue Agency) automatically calculates your eligibility.
If you are new to Canada:
You must complete and send Form RC151. This will allow the CRA to determine eligibility based on your starting time.
Why is this credit important?
You might wonder what’s the point of a few hundred dollars tax-free, but:
- It’s completely tax-free – you can use it however you want
- It helps mitigate the effects of inflation
- No additional documentation or application is required
- It’s paid out regularly throughout the year – making it easier to plan your budget
- It benefits both single individuals and entire families
What if you haven’t filed your tax return?
If you haven’t filed your tax return yet, you won’t get the benefit of this scheme, no matter how low your income is. Many people think that if they don’t have any income, they don’t need to file a tax return – but that’s the biggest mistake.
Tax returns = the key to profits.
Final thoughts
The Canada GST/HST Credit is a powerful source of relief for millions of Canadians in June 2025. With rising costs, this tax-free aid is a boon for those living on a limited income. The best part is that it’s simple, regular and hassle-free. If you haven’t filed taxes yet, or set up direct deposit with the CRA, now’s the perfect time. With just a few simple steps, you could get hundreds of dollars in aid — and the next payment could hit your account as early as June 5, 2025.
FAQs
1. What is the GST/HST Credit in Canada?
A. The GST/HST Credit is a tax-free quarterly payment from the Government of Canada designed to help low- and moderate-income individuals and families offset the goods and services tax (GST) or the harmonized sales tax (HST) they pay.
2. When will the June 2025 GST/HST Credit be paid?
A. The June 2025 payment date is June 5, 2025. Payments are made quarterly in June, October, January, and April.
3. Do I need to apply for the GST/HST Credit?
A. No, there is no separate application. You are automatically assessed when you file your income tax return.
4. What if I’m new to Canada?
A. Newcomers must fill out Form RC151 to apply for the GST/HST Credit. This helps the CRA assess your eligibility based on your residency status and income.
5. How will I receive the GST/HST payment?
A. You can receive the payment by direct deposit to your bank account or by cheque in the mail. Direct deposit is faster and more secure.
