The Goods and Services Tax (GST) and Harmonized Sales Tax (HST) credit is a tax-free quarterly payment designed to help individuals and families with low to modest incomes offset the GST/HST they pay.
As of November 2024, eligible Canadians have received their final GST/HST credit payment for the year, providing financial relief during the fall months when expenses typically rise.
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Purpose of the GST/HST Credit
The GST/HST credit serves as a financial lifeline for Canadians, helping to alleviate the burden of sales taxes applied to many goods and services. Given the increasing cost of living, particularly in essential areas like housing and groceries, this program is vital for those who earn low or modest incomes.
By delivering these payments, the government provides targeted financial assistance to those most in need, helping ensure that basic needs are more manageable for vulnerable households.
Payment Amounts
The payments issued this week were based on recipients’ 2023 tax returns and calculated according to their adjusted family net income and the number of children under 19 who are registered for the Canada Child Benefit. Here’s a breakdown of the amounts beneficiaries received:
- Single individuals without children: Eligible for up to $519 annually, with the October payment representing one-quarter of that amount.
- Married couples or common-law partners with no children: Eligible for up to $680 for the full year.
- Families with children: Received up to $179 per child for the year, with shared custody arrangements splitting the amount between parents.
Eligibility Criteria
To have received this week’s payment, Canadians had to meet several criteria:
- Age requirement: Beneficiaries must be at least 19 years old.
- Residency requirement: They must have been residents of Canada for income tax purposes in the months before and during the payment issuance.
- Income requirement: Canadians with an adjusted family net income of $70,000 or less were eligible to receive the GST/HST credit.
For those under the age of 19, certain exceptions allowed eligibility, including individuals who had a spouse or common-law partner or who were parents living with their child.
Upcoming Payment Schedule
With the final payment for 2024 now completed, the program will continue into 2025. The next payment is scheduled for January 3, 2025. This upcoming payment will continue to be based on recipients’ 2023 tax returns.
However, changes to income for 2024 could affect the amount of future payments. For example, an increase in adjusted family net income in 2024 could reduce the GST/HST credit starting in July 2025.
This means that individuals who experienced an income boost this year should expect a recalibration of their credit next summer.
| Category | Annual Amount | Quarterly Payment | Eligibility Criteria | Next Payment Date |
|---|---|---|---|---|
| Single individuals without children | Up to $519 | Approximately $129.75 | Adjusted family net income ≤ $70,000 | January 3, 2025 |
| Married couples without children | Up to $680 | Approximately $170 | Adjusted family net income ≤ $70,000 | January 3, 2025 |
| Families with children | Up to $179 per child | Approximately $44.75 per child | Adjusted family net income ≤ $70,000 | January 3, 2025 |
| Individuals with small credits (<$50) | Full year’s payment issued in July | N/A | Adjusted family net income ≤ $70,000 | N/A |
This table summarizes the GST/HST credit amounts, eligibility criteria, and upcoming payment schedule.
The GST/HST credit continues to play a crucial role in supporting Canadians with low to modest incomes, helping them manage the additional costs of GST and HST on everyday items and services.
As the program moves into 2025, eligible individuals and families can look forward to continued support, with the next payment scheduled for January 3, 2025. Recipients need to keep their tax information up to date, as changes in income can affect the amount of the credit.
FAQs
What is the GST/HST credit?
The GST/HST credit is a tax-free quarterly payment that helps individuals and families with low to modest incomes offset the GST/HST they pay on goods and services.
How do I know if I’m eligible for the GST/HST credit?
Eligibility is determined based on your age, residency status, and adjusted family net income. Generally, individuals aged 19 or older who are residents of Canada for income tax purposes and have an adjusted family net income of $70,000 or less may qualify.
How are the payment amounts calculated?
Payment amounts are based on your adjusted family net income and the number of children under 19 registered for the Canada Child Benefit.
