Those who have filed their 2024 tax returns will automatically receive the updated GST Credit amounts between July 2025 and June 2026, offering much-needed relief in a period of inflation and high expenses.
Understanding the GST Credit Program (Purpose and Background)
The GST Credit is a tax-free quarterly payment administered by the Canada Revenue Agency (CRA). It is designed to offset the Goods and Services Tax (GST) that low- and modest-income individuals and families pay on everyday purchases like groceries, utilities, and services.
By raising the credit by 2.7% in 2025, the government ensures that the benefit keeps up with inflation and continues to support Canadians struggling with essential costs. The adjustment comes as part of Ottawa’s broader effort to strengthen social support programs and maintain affordability amid ongoing economic pressures.
New Payment Amounts After the 2.7% Increase
The GST Credit is an income-tested benefit, meaning that those with higher incomes receive smaller amounts, and individuals above certain income thresholds may not qualify at all.
Based on the 2024 tax return, here are the new GST Credit payment amounts effective from July 2025:
| Beneficiary Type | New Payment Amount |
|---|---|
| Single Adult | $533 |
| Married Couple | $698 |
| Each Qualified Child | $184 |
These updated amounts reflect the 2.7% increase and will be distributed quarterly from July 2025 to June 2026. The rise ensures that Canadians’ purchasing power remains somewhat protected as prices continue to climb.
Who Qualifies for the GST Credit in 2025–2026?
To receive the GST Credit for the 2025–2026 benefit year, Canadians must meet specific eligibility criteria outlined by the CRA.
You must:
- Be a Canadian resident for tax purposes.
- Be 19 years of age or older.
- If under 19, meet at least one of the following:
- Have a spouse or common-law partner, or
- Be a parent living with a child.
- Have filed your 2024 income tax return before the deadline.
- Possess a valid Social Insurance Number (SIN).
The CRA automatically reviews your tax information to determine eligibility — there’s no separate application required. As long as you’ve filed your taxes, the CRA will calculate your GST Credit and deposit it accordingly.
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Payment Dates for the 2025–2026 GST Credit
The GST Credit will be paid quarterly, ensuring consistent financial support throughout the year.
Here’s the official CRA payment schedule for the 2025–2026 period:
| Quarter | Payment Date | Covers Period |
|---|---|---|
| Q1 | 04 July 2025 | July – September 2025 |
| Q2 | 03 October 2025 | October – December 2025 |
| Q3 | 05 January 2026 | January – March 2026 |
| Q4 | 03 April 2026 | April – June 2026 |
This quarterly cycle helps households plan their budgets effectively, offering predictable financial relief four times a year.
Quick Facts: GST Credit 2025 Overview
| Details | Information |
|---|---|
| Announcement | Canada GST Credit Increase 2025 |
| Year | 2025 |
| Country | Canada |
| Benefit Name | GST Credit Payment |
| Increase Rate | 2.7% |
| Payment Period | July 2025 – June 2026 |
| Payment Frequency | Quarterly |
| Tax Status | Tax-Free |
| Next Payment Date | 3rd October 2025 |
| Managing Agency | Canada Revenue Agency (CRA) |
| Official Website | canada.ca |
Why This GST Credit Increase Matters
The 2.7% increase may seem modest, but it represents an important financial buffer for millions of Canadians coping with high costs of food, housing, and transportation.
The federal government has faced pressure to adjust social programs for inflation, and this update shows continued commitment to keeping low-income Canadians financially secure.
For many recipients, the extra funds can help with:
- Purchasing groceries and essentials,
- Covering utility bills and rent,
- Managing transportation or childcare costs, and
- Handling emergency expenses.
In essence, this benefit offers tangible relief to those who feel the effects of price hikes most sharply.
How to Receive the GST Credit Payment
The CRA automatically deposits the GST Credit into the bank accounts of eligible recipients who are registered for direct deposit.
If you haven’t yet signed up, you can do so by:
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- Logging in to your CRA My Account, or
- Visiting your local Service Canada Centre for assistance.
Those who prefer mailed payments will receive a cheque delivered to their registered mailing address, though this option may take longer to arrive.
To ensure your payments are not delayed, make sure your banking and mailing information are accurate and up to date on your CRA profile.
How the Increase Is Calculated (Inflation Adjustment)
Each year, the CRA reviews inflation data and other economic factors to determine whether benefit programs like the GST Credit need adjustments.
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The 2.7% increase for the 2025–2026 tax year is tied to the Consumer Price Index (CPI), ensuring the benefit reflects the real cost of living. This automatic inflation indexation means that the GST Credit will continue to adjust annually without requiring separate government legislation each time.
What If You Don’t Receive the Payment?
If you believe you qualify but haven’t received your payment, here are the recommended steps:
- Wait at least 10 business days after the payment date for direct deposit or cheque delivery.
- Check your CRA My Account to confirm your payment status.
- Verify that your tax return was filed and processed correctly.
- Contact the CRA Benefit Enquiries Line for further assistance.
The CRA can investigate missing or delayed payments and help ensure future deposits are made correctly.
Relation to Other Federal Benefits
The GST Credit complements several other federal and provincial financial assistance programs. It does not affect or reduce payments from:
- Canada Child Benefit (CCB)
- Old Age Security (OAS)
- Guaranteed Income Supplement (GIS)
- Canada Workers Benefit (CWB)
Many Canadians receive multiple benefits simultaneously, with the CRA coordinating payments to prevent overlap or double-counting of income support.
Broader Economic Impact
The GST Credit has become one of Canada’s most effective anti-poverty tools, particularly for families and seniors living on tight budgets.
The increase aligns with Canada’s ongoing efforts to tackle income inequality and cost-of-living challenges, especially in light of post-pandemic inflation trends.
By boosting household purchasing power, the program also supports local economies, as recipients often spend the money immediately on goods and services in their communities.
FAQs
1. What is the new GST Credit amount for 2025?
After the 2.7% increase, the new annual GST Credit amounts are $533 for single adults, $698 for couples, and $184 per child.
2. Who is eligible for the GST Credit 2025–2026?
You must be a Canadian resident, at least 19 years old, or meet certain family conditions if under 19, and must have filed your 2024 tax return.
3. When are the GST Credit payments issued?
Payments are made quarterly on July 4, October 3, 2025; January 5, and April 3, 2026.
4. Do I need to apply for the GST Credit?
No, the GST Credit is automatically calculated and paid based on your income tax return. There is no separate application required.
5. Is the GST Credit taxable?
No, it is a tax-free benefit, meaning you don’t need to report it as income on your tax return, and it doesn’t affect other government benefits.