The GST/HST credit, administered by the Canada Revenue Agency (CRA), provides tax-free payments every quarter. This financial assistance is aimed at easing the burden of the Goods and Services Tax (GST) and Harmonized Sales Tax (HST) for individuals and families with low income. Additionally, certain provincial and territorial benefits may be included in these payments.
Understanding the GST/HST Credit Mechanism
In Canada, almost all goods come with the GST incorporated into their pricing. In several provinces, this tax is merged with the provincial sales tax (PST), resulting in the HST. The total tax rate may vary based on your specific province or territory, but it undoubtedly affects the finances of many Canadians.
To alleviate the financial impact on those earning lower incomes, the government provides the GST/HST credit. Recipients receive these payments via direct deposit into their bank accounts, allowing for immediate use of the funds.
As long as you complete your tax return, you will automatically be considered for this credit.
What is the Amount of the GST/HST Credit?
The amount of the GST/HST credit you receive is influenced by several factors:
- Your family’s net income, which includes your spouse’s or common-law partner’s earnings
- The number of children registered for the Canada Child Benefit (CCB) as well as the GST/HST credit
For those qualifying in the 2021 base year (covering the payment period of July 2022 to July 2023), the maximum amounts are as follows:
- $461 for individual applicants
- $612 for couples or common-law partnerships
- $161 for each child under 18 years of age
Factors Affecting Your GST/HST Credit Amount
Certain situations may lead to a recalculation of your GST/HST credit amount, including:
- A reassessment of your family’s net income by the CRA
- When an eligible child reaches the age of 19
- Changes in the number of eligible children
- Alterations in your marital status
- The passing of a recipient
- Changes in custody arrangements for an eligible child
Eligibility Criteria for the GST/HST Credit
To be considered for the HST credit, you must be a Canadian resident for tax purposes during the month preceding the CRA’s payment and at the start of that month.
Moreover, you must meet at least one of the following conditions:
- You are 19 years of age or older
- You are (or were) in a common-law partnership or marriage
- You are (or were) a parent living with your child
It is also necessary to file your taxes to be eligible for this credit, for which you need a Social Insurance Number (SIN). Notably, Canadian citizenship is not a requirement; being a resident of Canada for tax purposes suffices.
Even if you have no income, as long as you file your taxes, you will qualify for the GST/HST credit.
Payment Dates for GST Cheques
Payments for the GST/HST credit are made on the following dates:
- January 5
- April 5
- July 5
- October 5
In response to inflation in 2022, the CRA provided a one-time extra GST credit payment to eligible individuals and families, distributed between November 4, 2022, and January 5, 2023.
If you have registered for direct deposit, you will receive your funds almost instantly. However, opting for a cheque could result in a delivery delay of several weeks.
How to Apply for the GST/HST Credit
Canadian residents who file their annual tax returns will automatically be reviewed for the GST/HST credit, and those who qualify will receive payments quarterly.
Newcomers to Canada can also apply for the GST/HST credit but must first complete an application form.
- RC66 (Canada Child Benefits Application) applies to those with children
- RC151 (GST/HST Credit Application for New Residents) is to be completed by individuals without children
If you have already applied for and received the Canada Child Benefit (CCB), you can claim your GST/HST credit simultaneously.
For individuals yet to apply for the CCB, you can do so through your CRA My Account by locating the “apply for child benefits” section.
Additional Benefits Based on Provincial and Territorial Programs
Depending on your province or territory, you may be eligible for extra assistance if you qualify for the GST/HST credit. Some of these additional programs include:
- Climate Action Tax Credit in British Columbia
- Harmonized Sales Tax Credit in New Brunswick
- Income Supplement for Newfoundland and Labrador
- Senior Benefits in Newfoundland and Labrador
- Cost of Living Offset in the Northwest Territories
- Affordable Living Tax Credit in Nova Scotia
- Sales Tax Credit in Prince Edward Island
- Low-Income Tax Credit in Saskatchewan
- Carbon Price Rebate in Yukon
Additionally, Ontario offers a sales tax credit that is issued separately from the GST/HST credit.