The Canada Revenue Agency (CRA) will issue the next round of Goods and Services Tax (GST) and Harmonized Sales Tax (HST) credits on October 4, 2024. This payment is part of the federal government’s ongoing efforts to provide financial assistance to Canadians with low or modest incomes. The GST and HST credits are designed to help ease the financial burden on individuals and families, particularly by offsetting the additional costs incurred from these taxes on daily purchases.
CRA to Release HST/GST Credit Payment in October 2024
For many Canadians, the GST/HST credit is a crucial form of financial support, helping them meet essential needs when inflation and rising living costs are affecting households nationwide. Knowing how these payments work, who qualifies for them, and the amount recipients can expect is key to ensuring that eligible Canadians receive their due financial support. This guide will summarise the key details about the upcoming payment and answer frequently asked questions.
What is the GST/HST Credit?
The GST/HST credit is a non-taxable benefit provided by the federal government. It aims to assist low—and modest-income individuals and families with the costs they incur from GST and HST on goods and services. Since these taxes are embedded in the prices of most products, the credit is designed to reduce the burden on those who may struggle with basic expenses.
The amount of the credit is determined based on the family income reported on the previous year’s tax return, and payments are made quarterly. The October 2024 payment is the second instalment covering July 2024 to June 2025. One key advantage is that this credit is non-taxable, meaning it does not need to be declared as income when filing taxes, simplifying the process for recipients.
In addition to this credit, other government programs like the Canada Child Benefit (CCB) and various provincial benefits work together to form a broader support system for low-income Canadians. This helps ensure essential goods and services remain affordable for everyone.
Eligibility Criteria for GST/HST Credit
The CRA has set specific eligibility criteria to determine who qualifies for the GST/HST credit. These rules are in place to ensure that assistance reaches those who need it most.
- Residency Requirement: To be eligible, you must be a Canadian resident for tax purposes at the beginning of the month in which the payment is issued.
- Age Requirement: You must be at least 19 years old during the month before the payment is made.
- Filing a Tax Return: You must file a 2023 tax return to receive the October 2024 GST/HST credit. Filing is essential for receiving this credit and accessing other benefits like the Canada Workers Benefit (CWB) and provincial tax credits.
New Canadians, including permanent residents, international students, and work permit holders, can also qualify once they file their first tax return.
How Much Can You Receive?
The amount of GST/HST credit depends on several factors, including your family income, marital status, and the number of children in your household. The CRA calculates the credit based on your 2023 tax return, and the payment amounts are adjusted annually to reflect inflation and changing living costs.
Maximum Payment for July 2024–June 2025
Here’s the maximum amount eligible Canadians can receive from July 2024 to June 2025:
- Single individuals: Up to $519 per year
- Married or common-law couples: Up to $680 per year
- Per child under 19 years: Up to $179 per child
These amounts are split into four payments, with the second instalment set for October 4, 2024. Depending on the recipient’s preference, payments are issued either by direct deposit or mail.
Example Calculation of Payments
The CRA uses a sliding scale to calculate the specific amount you will receive, based on your adjusted family net income. For example, a single individual earning less than $11,039 could receive $340 annually, whereas a couple with two children and an income of $25,000 could get $1,038 annually.
Here’s a detailed breakdown:
| Adjusted Family Net Income | No Children | 1 Child | 2 Children | 3 Children |
|---|---|---|---|---|
| Under $11,039 | $340.00 | $859.00 | $1,038.00 | $1,217.00 |
| $25,000 | $519.00 | $859.00 | $1,038.00 | $1,217.00 |
| $50,000 | $235.20 | $575.20 | $754.20 | $933.20 |
| $65,000 | $0.00 | $0.00 | $4.20 | $183.20 |
This chart illustrates how the payment amount decreases as family income rises, ensuring those in greatest need receive the highest benefit.
2024–2025 Payment Schedule
GST/HST credit payments are made every quarter. The October 2024 payment is just one of several scheduled for the 2024–2025 period. Future payments are planned for:
- January 3, 2025
- April 4, 2025
Payments are typically issued on the 5th of the month, unless the date falls on a weekend or holiday, in which case they are issued on the last business day before the 5th.
What to Do if You Don’t Receive Your Payment
If you don’t receive your GST/HST payment by the expected date, you should wait 10 business days before contacting the CRA at 1-800-387-1193. Common reasons for delayed payments include:
- Incorrect or outdated personal information, such as an old mailing address or bank account.
- CRA processing delays.
- Problems with direct deposit details or changes in banking information.
To avoid delays, ensure your personal information with the CRA is always up-to-date. You can do this through the CRA My Account portal or by contacting them directly.
Additional Government Payments in October 2024
Alongside the GST/HST credit, several other government payments are scheduled for October 2024. These include:
- Canada Child Benefit (CCB) payments for families with children under 18.
- Old Age Security (OAS) and Guaranteed Income Supplement (GIS) payments for seniors.
These additional payments offer further financial relief to eligible Canadians. Check your eligibility for these programs and update your information with the CRA to avoid any delays in receiving your payments.
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