The first Goods and Services Tax/Harmonized Sales Tax (GST/HST) payment of 2025 is scheduled to be deposited into the bank accounts of eligible Canadians on January 3, 2025.
This quarterly benefit is designed to assist individuals and families with low to modest incomes by offsetting the annual GST/HST they pay on goods and services.
Understanding the GST/HST Credit
The GST/HST credit is a tax-free quarterly payment from the federal government to ease the financial burden of GST/HST for eligible Canadians.
Payments are typically issued in January, April, July, and October. The amount received depends on factors such as net family income, marital status, and the number of children under 19.
Upcoming Payment Schedule
Following the January 3 payment, the following GST/HST credit payments for 2025 are scheduled for:
- April 4, 2025
- July 4, 2025
- October 3, 2025
These dates are consistent with the Canada Revenue Agency’s (CRA) schedule for benefit payments.
Additional Financial Support: Federal Carbon Rebate
In addition to the GST/HST credit, eligible Canadians will receive the federal Carbon Rebate on January 15, 2025. This rebate is part of the government’s efforts to offset carbon pricing costs.
Individuals in Newfoundland and Labrador can expect to receive $149, while a family of four will receive $298. Higher amounts are available for those who qualify for the rural top-up.
Anticipated Increases in Payroll Taxes
Canadians should also be aware of an expected increase in payroll taxes this year, particularly concerning Canada Pension Plan (CPP) premiums.
This adjustment may affect net take-home pay, and individuals are advised to review their pay stubs and adjust their budgets accordingly.
| Payment Type | Payment Date | Individual Amount | Family of Four Amount | Additional Notes |
|---|---|---|---|---|
| GST/HST Credit | January 3, 2025 | Varies | Varies | Based on income and family size |
| Federal Carbon Rebate | January 15, 2025 | $149 | $298 | Higher amounts for rural top-up |
| CPP Premium Increase | Effective 2025 | N/A | N/A | Check pay stubs for adjustments |
Conclusion
The beginning of 2025 brings several important financial updates for Canadians, including the first GST/HST credit payment, the federal Carbon Rebate, and anticipated increases in payroll taxes.
Staying informed about these changes is crucial for effective financial planning and budgeting in the new year.
FAQs
1. What is the GST/HST credit?
The GST/HST credit is a tax-free quarterly payment designed to help individuals and families with low to modest incomes offset the GST or HST they pay on goods and services.
2. Who is eligible for the GST/HST credit?
Eligibility is determined based on your net family income, marital status, and the number of children under 19 in your household. Filing your annual income tax return is essential, as the Canada Revenue Agency uses this information to assess eligibility.
3. How can I receive the GST/HST credit?
Ensure that you file your income tax return annually, even if you have no income to report. The CRA will automatically determine your eligibility and issue payments if you qualify.
4. What is the federal Carbon Rebate?
The federal Carbon Rebate is a payment intended to offset the costs associated with federal carbon pricing. Amounts vary based on province of residence and family size, with additional amounts for those in rural areas.
5. How will the CPP premium increase affect me?
An increase in CPP premiums means that a slightly higher portion of your earnings will be deducted for CPP contributions.
