As July inches closer and closer, Canadians should prepare to receive a handful of government benefits and credits, including the GST/HST credit.
With the rising cost of living, it's no surprise residents, particularly, low-income families, are looking for ways to supplement inflation in Canada — whether it be taking on more hours at work, an additional job, or seeking financial aid from federal programs.
It's important to verify your eligibility for the GST/HST credit, as you could be entitled to hundreds of dollars in July. In fact, qualified Canadians can expect to receive up to $650 from the credit in 2024.
Here's everything you need to know about the upcoming GST/HST credit payment, how much you can receive and when the payments go out:
What is the GST/HST credit?
The goods and services tax/harmonized sales tax (GST/HST) credit is a tax-free quarterly payment designed to assist individuals and families with low to modest incomes by offsetting the GST or HST they pay.
It may also include payments from provincial and territorial programs, the CRA indicates.
Who is eligible for the GST/HST credit?
According to the CRA, to be eligible for the GST/HST credit, you must be at least 19 years old before April 1, 2024. If you're under 19, you must meet at least one of the following conditions during the same period: have or had a spouse or common-law partner, or be or have been a parent living with your child.
Additionally, you must be a Canadian resident for income tax purposes both in the month preceding the CRA's payment and at the beginning of the month when the CRA makes the payment.
How to apply for the GST/HST credit
According to the Canada Revenue Agency, there is no official application form for the GST/HST credit. To receive it each year, you simply need to file your taxes, even if you have no income to report.
New residents of Canada can apply for the GST/HST credit without filing their first tax return. Here's how:
- Complete the appropriate form:
- If you have children: Fill out and sign form RC66 - Canada Child Benefits Application.
- If you don't have children: Fill out and sign form RC151, GST/HST Credit and Canada Carbon Rebate Application for Individuals who become residents of Canada.
- Mail the completed form to your tax centre.
If you have children, you can claim the GST/HST credit for them. To ensure you receive the credit for your child:
- Sign in to My Account.
- Go to Apply for Child Benefits.
- Confirm your contact information, marital status, and citizenship.
- Add your child's details.
After applying, you can track your application status in My Account.
How much can you receive from the GST/HST credit?
GST/HST credit payments are calculated based on your adjusted family net income and the number of children under 19 registered for benefits, as determined by the CRA.
For singles, the calculation is based on line 23600 of your tax return or an equivalent amount. For couples, it's based on your combined net incomes. For the 2022 base year (July 2023 to June 2024), the payments could be:
- Singles: Up to $496
- Married/Common-law: Up to $650
- Each child under 19: Up to $171
When are the GST/HST credit payment dates?
The Canada Revenue Agency usually sends the GST/HST credit payments on the fifth day of July, October, January, and April.
For Canadians who do not receive the GST/HST credit payment on the specific date, it is recommended by the CRA to wait 10 business days before contacting them.
Furthermore, for residents turning 19 years old, the CRA will issue your first payment on the payment date after your 19th birthday if you have filed your tax return and are entitled to the GST/HST credit.
Payment Dates:
- January 5, 2024
- April 5, 2024
- July 5, 2024
- October 5, 2024
This article's cover image was used for illustrative purposes only.
