This week, many Canadians received their final Goods and Services Tax (GST) and Harmonized Sales Tax (HST) credit payment for the year. These tax-free payments, distributed every three months by the federal government, are designed to assist Canadians with low to modest incomes in managing the added costs of GST and HST on everyday goods and services.
Arriving in October, this payment provides timely relief as the holiday season approaches, a period when families often face increased expenses. Whether the funds are used for essentials like groceries or to cover other living costs, they serve as a financial boost for those in need. With the 2024 payments now completed, the program will continue into 2025, with the next disbursement scheduled for January. Below, we outline how much recipients received, the eligibility requirements, and what lies ahead.
Purpose of the GST/HST Credit
The GST/HST credit acts as a financial safety net, helping Canadians offset the burden of sales taxes on goods and services. With the rising cost of living—especially in key areas like housing and groceries—this program provides critical assistance to individuals and families earning low to modest incomes. By offering targeted relief, the government ensures that vulnerable households have better access to essential needs.
October 2024 Payment: How Much Did Canadians Receive?
The October payments were determined based on recipients’ 2023 tax returns and calculated according to their adjusted family net income and the number of children under 19 registered for the Canada Child Benefit (CCB). Here’s a breakdown of the amounts:
- Single individuals without children: Eligible for up to $519 annually, with the October payment representing one-quarter of this amount.
- Married or common-law couples without children: Eligible for up to $680 annually.
- Families with children: Received up to $179 per child annually, with shared custody arrangements splitting this amount between parents.
Full Payment for Small Credits
For those whose total credit for the quarter was less than $50, the Canada Revenue Agency (CRA) issued a lump sum payment for the entire year back in July 2024, ensuring that smaller amounts weren’t spread across the year.
October Payment Credited
The final GST/HST credit payment for 2024 has been successfully credited to eligible Canadians. As usual, the payment is tax-free, offering financial support during the fall when seasonal costs, such as heating, typically increase household expenses.
- Direct deposit recipients: Should already see the payment reflected in their bank accounts.
- Cheque recipients: Can expect delivery within a few days.
Eligibility Criteria for the GST/HST Credit
To qualify for this week’s payment, Canadians needed to meet the following requirements:
- Age Requirement: Must be at least 19 years old.
- Residency: Must be a Canadian resident for income tax purposes both in the months before and during the payment issuance.
- Income: Individuals with an adjusted family net income of $70,000 or less qualified for the credit.
Exceptions for Those Under 19
Certain individuals under 19 were also eligible if they:
- Had a spouse or common-law partner, or
- Were parents living with their child.
What’s Next for GST/HST Credit Recipients?
The October payment concludes the 2024 credit cycle, but Canadians won’t have to wait long for the next installment. The first payment for 2025 is scheduled for January 3, 2025, and will still be based on 2023 tax returns.
Future Adjustments
Changes to recipients’ 2024 income could impact the amount of GST/HST credit received starting in July 2025. For instance, an increase in adjusted family net income may result in a reduction in credit amounts. Canadians who experienced an income boost in 2024 should anticipate recalibrated payments in the next cycle.
The GST/HST credit continues to be an essential financial tool, providing meaningful support to Canadians facing rising living costs. With the program set to carry on into 2025, eligible recipients can look forward to additional relief in the months ahead.
