The GST/HST credit is completely tax-free and paid quarterly. You get it automatically by filing your taxes — no separate application. The maximum is $349 per adult and $184 per child, paid in four instalments each year. Payments begin to phase out once net family income exceeds $45,521.
What Is the GST/HST Credit?
The GST/HST credit is a federal tax-free quarterly payment administered by the Canada Revenue Agency (CRA). It is designed to offset the Goods and Services Tax (GST) and the Harmonized Sales Tax (HST) that lower-to-moderate income individuals and families pay on goods and services throughout the year. Unlike a tax deduction, the GST/HST credit does not reduce your taxable income — it is a direct cash payment deposited to your bank account or mailed as a cheque.
GST/HST credit payments are not taxable income and do not need to be reported on your tax return. They also do not count as income for any other purpose, including income-testing for TFSA room, RRSP room, or other benefits.
No Separate Application Needed
One of the most important things to understand about the GST/HST credit: you do not need to apply separately. When you file your annual T1 income tax return, CRA automatically assesses your eligibility and calculates your credit. The benefit starts arriving in the quarter after CRA processes your return.
This is one of the strongest reasons why filing your tax return every year matters — even if you had zero income and owe no tax.
Who Is Eligible for the GST/HST Credit?
To receive the GST/HST credit, you must meet all of the following conditions as of the first day of the payment month:
- You are a Canadian resident for income tax purposes
- You are 19 years of age or older, OR you have (or had) a spouse or common-law partner, OR you are (or were) a parent living with your child
- Your net family income is below the phase-out threshold (details below)
- You have filed your income tax return for the prior year, even if you had no income
How Much Is the GST/HST Credit in 2025?
The 2025–26 benefit year runs from July 2025 to June 2026 and is based on your 2024 net family income as reported on your 2024 tax return. The credit amounts are:
| Recipient | Annual Amount | Per Quarter |
|---|---|---|
| Each adult (you + spouse) | $349 | $87.25 |
| Each child under 19 | $184 | $46.00 |
| Single parent supplement (first child) | $184 | $46.00 |
Maximum Annual Credit by Family Type
| Family Situation | Maximum Annual Credit |
|---|---|
| Single person (no children) | $349 |
| Single parent (1 child) | $349 + $184 + $184 (supplement) = $717 |
| Couple (no children) | $349 + $349 = $698 |
| Couple with 2 children | $349 + $349 + $184 + $184 = $1,066 |
The Phase-Out: When Does the Credit Start to Reduce?
The GST/HST credit is reduced once your net family income (Line 23600 of both spouses combined) exceeds the threshold. For the 2025–26 benefit year:
- Phase-out starts at: $45,521 net family income
- Reduction rate: 5 cents per dollar of income above $45,521
Phase-Out Examples
Example 1 — Single person, $30,000 income: Income is below $45,521, so full credit applies. Annual credit = $349 ($87.25 per quarter).
Example 2 — Couple with 2 children, $55,000 income:
- Maximum credit: $698 (adults) + $368 (2 children) = $1,066
- Excess income: $55,000 − $45,521 = $9,479
- Reduction: $9,479 × 5% = $473.95
- Credit after phase-out: $1,066 − $473.95 = $592.05 per year
Example 3 — Couple with 2 children, $80,000 income:
- Maximum credit: $1,066
- Excess income: $80,000 − $45,521 = $34,479
- Reduction: $34,479 × 5% = $1,723.95
- Since $1,723.95 exceeds the maximum credit of $1,066, the credit is completely phased out at this income level.
Payment Schedule for the 2025–26 Benefit Year
Based on your 2024 tax return (filed in spring 2025), CRA pays the GST/HST credit on these dates:
| Payment | Date |
|---|---|
| 1st quarter | July 4, 2025 |
| 2nd quarter | October 3, 2025 |
| 3rd quarter | January 5, 2026 |
| 4th quarter | April 4, 2026 |
The 2026–27 benefit year (starting July 2026) will be based on your 2025 tax return, which you are filing now in spring 2026.
If you do not file your income tax return for a year, CRA cannot calculate your GST/HST credit and will stop your payments. This applies even if you had zero income for the year. Filing your return costs nothing and takes very little time when you have no income — and it ensures you keep receiving this and other income-tested benefits.
What If Your Circumstances Change During the Year?
CRA reassesses your GST/HST credit annually based on your prior year’s return. However, some changes require you to notify CRA between filing dates:
- New child born or adopted: Notify CRA immediately via My Account or by calling 1-800-387-1193. Your credit will increase for subsequent quarterly payments once CRA updates its records.
- Change in marital status: Notify CRA within one month. This affects the family income calculation and can increase or decrease your credit.
- Child leaves home or turns 19: CRA adjusts automatically when they process your next year’s return.
TFSA Withdrawals Do Not Reduce Your GST Credit
A common misconception: TFSA withdrawals are not income for any tax purpose, including income-testing for the GST/HST credit. If you withdraw $20,000 from your TFSA, your net family income on Line 23600 does not change, and your GST credit is unaffected. This is one of the key advantages of the TFSA as a tax-planning tool for lower-income years.
Ontario Residents: The Ontario Trillium Benefit
Ontario residents should be aware that the Ontario Trillium Benefit (OTB) is a separate program that bundles together three Ontario credits: the Ontario Sales Tax Credit ($371 per adult and $371 per child), the Ontario Energy and Property Tax Credit, and the Northern Ontario Energy Credit. The OTB is administered alongside the GST/HST credit but is a provincial program. You apply for the OTB on Schedule ON-BEN of your Ontario tax return.
Newcomers to Canada
If you recently became a Canadian resident and have not yet filed a Canadian tax return, you can apply for the GST/HST credit by completing Form RC151 (GST/HST Credit and Canada Carbon Rebate Application for Individuals Who Become Residents of Canada) and submitting it to your local tax centre. Once processed, CRA will begin paying your credit retroactively to the quarter you became a resident. After your first full tax year, simply file your T1 return each spring to continue receiving the credit automatically.
For full details on the GST/HST credit program, see the CRA’s official GST/HST credit page.
Estimate Your Total Benefits and Tax Owing
Our free Canadian tax calculator factors in the GST/HST credit, Ontario Trillium Benefit, and all major credits when estimating your 2025 tax situation.
Frequently Asked Questions
Do I need to apply for the GST/HST credit separately?
No. Filing your annual T1 income tax return is all that is required. CRA automatically determines your eligibility and calculates your GST/HST credit amount based on your filed return — there is no separate application form for existing Canadian residents. The only exception is newcomers to Canada who have not yet filed a Canadian tax return; they should apply using Form RC151.
How does CRA calculate my GST/HST credit if my income changes mid-year?
CRA sets your GST/HST credit for each 12-month benefit period (July to June) based on your prior year’s filed tax return. Mid-year income changes do not immediately affect your payments. CRA reassesses your credit each year when you file your return. If your income rises significantly in 2025, your credit for the July 2026–June 2027 period will be lower or phased out. If your income falls, your credit will increase starting the following July.
What happens if I don’t file my taxes for a year — do I lose my GST credit?
Yes. CRA requires a filed tax return every year to assess your eligibility and credit amount. If you do not file, CRA cannot calculate your credit and will stop your payments. This applies even if you had no income for the year and owe no tax. File every year regardless of your income level — it is the single most important step to ensuring you receive the GST/HST credit and other income-tested benefits.
My GST credit payment seems lower than expected. Why?
Several factors can reduce your GST/HST credit below the maximum. Your net family income may have increased above the $45,521 phase-out threshold, triggering a reduction at 5 cents per dollar of excess income. A change in marital status affects the family income used in the calculation. If you had a new child and did not notify CRA, you may be missing the per-child credit. CRA may also be offsetting your credit against a debt on your account, such as an outstanding tax balance or an overpayment of another benefit.
Can I get the GST/HST credit if I’m a newcomer to Canada and haven’t filed a return yet?
Yes. Newcomers who have not yet filed a Canadian return can apply using Form RC151 (GST/HST Credit and Canada Carbon Rebate Application for Individuals Who Become Residents of Canada), submitted to your local CRA tax centre. CRA will assess your eligibility and begin payments from the quarter you became a resident. After your first full year in Canada, file your T1 return each spring to continue receiving the credit automatically.