How to Apply for the GST/HST Credit in Canada
What Is the GST/HST Credit and How Do You Qualify?
Everyone’s heard of the GST/HST, right? It stands for the goods and services tax/harmonized sales tax. To ease the tax burden placed on most everyday purchases, the Canada Revenue Agency (CRA) offers a GST/HST credit—a small financial boost for eligible Canadians issued quarterly.
Sounds good, right? Let’s dive deeper into what the credit is and how you can qualify.
What Is the GST/HST Credit?
The GST/HST credit provides financial relief for low- to modest-income Canadians by reducing the tax burden on consumer goods and services. Payments are issued quarterly to help eligible individuals and families manage these costs.
One of the best parts? Payments received through this program are tax-free, and there’s no need to report them as income on your tax return. As long as you file your income tax return each year, the CRA will automatically assess your eligibility.
How Do I Apply for the GST/HST Credit?
The process is simple: file your tax return on time. Even if you didn’t earn any income, filing your tax return is essential because it helps the CRA determine your eligibility for benefits like the GST/HST credit.
If you’re new to Canada, however, there’s a bit more paperwork involved. But don’t worry—it’s straightforward!
New Residents Must File Special Forms:
- Form RC66: If you have children, complete Form RC66 – Canada Child Benefits Application to apply for child and family benefits, including the GST/HST credit.
- Form RC151: If you don’t have children, complete Form RC151 – GST/HST Credit Application for Individuals Who Become Residents of Canada.
Mail the completed form to your tax centre, and you’re good to go.
Am I Eligible for the GST/HST Credit?
You’re eligible for the GST/HST credit if you meet the following criteria:
- Canadian Residency: You must be a Canadian resident for income tax purposes the month before and the month when the CRA makes a payment.
- Age and Status: You must be at least 19 years old, have (or had) a spouse or common-law partner, or be a parent living with your child.
Additionally, parents in shared-custody situations may receive half of the GST/HST credit for each child, but if a child welfare agency is responsible for the child, you’re not eligible for the credit for that child.
How Much Are the GST/HST Payments?
The amount you can receive from the GST/HST credit depends on factors like whether you have children, your marital status, and your combined family income. The payment amount is adjusted annually based on the prior year’s income.
For the period from July 2023 to June 2024, the maximum payments are:
- $496 if you are single
- $650 if you are married or have a common-law partner
- $171 for each child under 19
When Will I Get My GST/HST Payments?
If you qualify, GST/HST payments are distributed quarterly, with payments on:
- July 5, 2024
- October 4, 2024
- January 5, 2025
- April 5, 2025
These payments are based on your 2022 income tax return, and the payment period runs from July 2023 through June 2024.
By understanding the GST/HST credit, you can ensure that you’re maximizing the financial support available to you. As long as you file your tax return each year, you’ll be automatically considered for this helpful credit—making it easier to keep up with the cost of living.
Key Takeaways
- Canadians with low to modest incomes can reduce their tax burden on consumer goods and services through the GST/HST credit.
- New residents of Canada must fill out specific forms to apply for this credit.
- Eligibility for the GST/HST credit is based on residency status and factors such as age, marital status, or whether you have children.
