Most Canadians pay a goods and services tax (GST) on the things they purchase every day, which is a tax over and above their annual income taxes. In some provinces, GST is added to the provincial sales tax (PST) to form a harmonized sales tax (HST), while in other cases PST and GST are left separate.
The addition of GST or HST to the costs of goods and services has some Canadians paying more than they're able to bear, a phenomenon that mainly affects low-income and middle-income households and individuals. In response to this over-taxation problem, the Canadian federal government created the GST/HST credit scheme to help alleviate the tax burden on low- to middle-income Canadians. I'll be diving into the details of that program below.
What is the GST/HST Credit?
The goods and services tax/harmonized sales tax (GST/HST) credit is a tax-free quarterly payment issued by the Canada Revenue Agency (CRA) to individuals and families with low and modest incomes to help them offset or retrieve all or some of the GST or HST that they pay throughout the year.
Together with the GST/HST credit, you may also be eligible for other provincial and territorial benefits.
You are automatically considered for the goods and services tax/harmonized sales tax (GST/HST) credit when you file your taxes.
GST/HST Credit Payment Amount
The amount of GST/HST credit you are entitled to receive is made depending on the following:
- Your family's net income
- If you are married or have a common-law partner, your net incomes are combined to give your net family income.
- Your marital status
- If you are single, you are paid the amount in your completed tax return.
- The number of children that you have under 19 years of age that are registered for the Canada Child Benefit (CCB) and the GST/HST credit.
For the 2021 base year, that is, from July 2022 to June 2023, the maximum payments made are:
- $467 if you are single
- $612 if you are married or have a common-law partner
- $161 for each child under 19 years of age
For the 2022 tax year, payment commences from July 2023 to June 2024. The maximum amount you might receive is:
- $497 if you are single.
- $652 if you are married or have a common-law partner.
- An additional $171 for each child under 19 years living with you.
The GST/HST credit payments are usually sent out by the Canada Revenue Agency (CRA) on the 5th day of July, October, January, and April.
Ensure that you update your personal information regularly to avoid being overpaid or underpaid. An increase in your Adjusted Family Net Income (AFNI) could affect your payment for that tax year.
Eligibility Requirements for the GST/HST Credit
To be qualified for the GST/HST credit, you must be a Canadian resident for income tax purposes in the month prior and at the beginning of the month in which the GST/HST credit payments will be issued by the CRA. You must also have a Social Insurance Number (SIN).
Also, to be considered eligible for the GST/HST credit, you need to meet at least one of the following criteria:
- You are at least 19 years old.
- You have (or had) a spouse or common-law partner.
- You are (or were) a parent and live (or lived) with your child.
Parents who share custody of a child or children may be eligible to receive half of the GST/HST credit for that child or each child in their care. This also applies but is not limited to any related provincial and territorial credit.
You are not eligible for the GST/HST credit if:
- your Adjusted Family Net Income (AFNI) before tax ranges from $48,012 to $64,946. This is also dependent on your marital status and the number of children you have.
- you are not a Canadian resident for income tax purposes.
- you do not pay taxes in Canada because you are an officer or an official of another country (such as a diplomat) or a family member or employee of such a person.
- you are locked up in a prison or any correctional facility for 90 consecutive days or more.
Also, if your child is primarily taken care of by a child welfare agency financially, legally, or physically, you are not eligible to receive the GST/HST credit payment for that child.
GST/HST Credit Payment Dates for 2023
The GST/HST credit is paid quarterly to eligible Canadians in equal installments. Unless it falls on a holiday or weekend, the GST/HST payment dates fall on the fifth day of each payment quarter.
The GST/HST credit payment dates for 2023 are:
| Payment Quarter | GST/HST Credit Payment Dates |
| First Quarter | January 5, 2023 |
| Second Quarter | April 5, 2023 |
| Third Quarter | July 5, 2023 |
| Fourth Quarter | October 5, 2023 |
You should enroll for direct deposit to ensure that you receive your payments on time on the payment dates without disruption.
If after enrollment for direct deposit, you do not receive your payment on the due dates, you should wait for at least 10 business days before contacting the CRA.
If you are enrolled to receive your payment by cheque, you may not receive your payment on the GST/HST payment due dates depending on the operation of the mail service in your area.
How To Get The GST/HST Credit
Generally, you do not need to apply for the GST/HST credit because the CRA automatically determines your eligibility for the credit each year when you file your annual benefit and tax returns, even when you have no income to report.
If you are a new resident in Canada and would like to apply for the GST/HST credit, you need to follow the steps below to apply:
- Fill out any of these forms:
- If you are single or do not have children, fill out and sign the GST/HST Credit Application for Individuals Who Become Residents of Canada or Form RC151 for the year you became a resident.
- If you have children, fill out and sign the Canada Child Benefits Application or Form RC66 to apply for all child and family benefits of which the GST/HST credit is a part.
- Mail the completed application form to your tax center.
How To Register Your Children For The GST/HST Credit
Most children born in Canada are automatically registered for the GST/HST credit if they have been registered for the Canada Child Benefit (CCB). So, if you registered your child for the CCB, you might already be receiving the child's portion of the GST/HST credit. However, if you gave birth to another child, had custody of another child, or did not apply for the CCB, you can manually register your child to start receiving the GST/HST credit payments.
You should sign in to “My Account” on the CRA website and go to the “Apply for child benefits” tab. Fill in and confirm your contact information, your marital status, and your citizenship. Fill in the required data then submit your application.
Alternatively, you can fill out and sign the Canada Child Benefits Application or Form RC66 then mail the completed form to your tax center or the CRA.
How the GST/HST Credit is Calculated
As aforementioned, your GST/HST credit payments depend on your individual or family net income and the number of children under 19 years old that are in your care.
The CRA predetermines your GST/HST credit amount and calculates your GST/HST credit amount based on three components:
Base credit:
The base credit amounts to $306.
Additional credit:
Is a supplementary amount of up to $161 made available to Canadians with a net income of more than $9,868. This supplement is made based on the number of children and the net income of the family.
Credit Reduction:
This is a 5% reduction in the GST/HST credit when the net income is more than $39,825.
In summary, the calculations are made thus:
Your base credit of $306 + Your spouse's or common-law partner's credit of $306 + $161 for each child + an additional $161 if the family net income is above $10,105.
If your net income is more than $39,825, your GST/HST credit will be reduced by 5%.
Your GST/HST credit decreases when your income becomes greater than $39,825. If you are not married and have no children and your income level is more than $49,164, you will not be paid the GST/HST credits.
The CRA provides an online calculator and credit calculation sheets which you can use to calculate what you will receive in GST/HST credits.
GST/HST Credit Payments: Income Thresholds and Amount
Your income for the previous year determines the GST/HST credit amount you will receive. Your GST/HST credit amount is also determined by specific income thresholds.
As the GST/HST credit is aimed at low to medium-income Canadians, your credit amount starts decreasing when your income becomes greater than a certain income threshold and no credit payment will be received beyond this threshold.
For singles, the GST/HST credit payment starts reducing when the net income reaches $49,164. The amount received per year based on income and the number of children for single individuals is shown below:
| Adjusted Family Net Income (AFNI) | 0 children | 1 child | 2 children | 3 children | 4 children |
| < $9,686 | $306.18 | $773.12 | $933.89 | $1.094.66 | $1.255.42 |
| $12,000 | $353.57 | $773.12 | $933.89 | $1.09 | $1.26 |
| $15,000 | $415 | $773.12 | $933.89 | $1.09 | $1.26 |
| $20,000 | $466.94 | $773.12 | $933.89 | $1.09 | $1.26 |
| $25,000 | $466.94 | $773.12 | $933.89 | $1.09 | $1.26 |
| $30,000 | $466.94 | $773.12 | $933.89 | $1.09 | $1.26 |
| $35,000 | $466.94 | $773.12 | $933.89 | $1.09 | $1.26 |
| $40,000 | $410.21 | $716.39 | $879.21 | #¡VALOR! | #¡VALOR! |
| $45,000 | $154.21 | $460.39 | $621.16 | $781.93 | $942.69 |
| $50,000 | $0 | $773.12 | $933.89 | $1.09 | $125.54 |
| $50,000 | $0 | $204.39 | $365.16 | $525.93 | $686.69 |
| $55,000 | $0 | $0 | $109.16 | $269.93 | $430.69 |
| $60,000 | $0 | $0 | $0 | $13.93 | $174.69 |
| $65,000 | $0 | $0 | $0 | $0 | $0 |
Married couples without children will have their GST/HST credit clawed back to $0 when their family net income becomes or exceeds $52,072. The amount received per year based on income and number of children for married or common-law couples is shown below:
| Adjusted Family Net Income (AFNI) | 0 children | 1 child | 2 children | 3 children | 4 children |
| Below $38,392 | $598 | $755 | $912 | $1,069 | $1,226 |
| $40,000 | $542.60 | $699.60 | $856.60 | $1,013.60 | $1,170.60 |
| $45,000 | $292.60 | $449.60 | $606.60 | $763.60 | $920.60 |
| $50,000 | $42.60 | $199.60 | $356.60 | $513.60 | $670.60 |
| $55,000 | $0 | $0 | $106.60 | $263.60 | $420.60 |
| $60,000 | $0 | $0 | $0 | $13.60 | $170.60 |
| $65,000 | $0 | $0 | $0 | $0 | $0 |
Maximum Income Threshold for GST/HST Credit Payments
The maximum income threshold at which no GST/HST credit will be received is shown below:
| Number of Children | Single Individuals | Married / Common-law Partners |
| 0 | $49,164 | $53,316 |
| 1 | $56,615 | $56,615 |
| 2 | $59,910 | $59,910 |
| 3 | $63,207 | $63,207 |
| 4 | $66,505 | $66,505 |
When To Contact The Canada Revenue Agency
Some changes can affect your GST/HST credit and cause the amount to be recalculated and you should contact the CRA should any of these changes occur.
A reassessment of either your or your spouse or common-law partner's tax return can affect your GST/HST payment amount if it causes a change in your family net income.
Other changes that may cause your GST/HST payment amount to be recalculated or changed include:
- A change in the number of eligible children in your care.
- Your child turns 19 years old.
- There is a change in your marital status.
- A recipient dies.
- You start or stop, sharing custody of a child or children.
- A deceased recipient was married or a common-law partner.
- Your personal information such as your name, marital status or any important information as shown in your GST/HST credit notice changes or is not correct.
- You or your spouse or common-law partner are no longer Canadian residents or are moving.
GST/HST Credit: Related Provincial and Territorial Programs
Many Canadian provinces and territories have additional tax credit programs that are paid alongside the GST/HST credit. The CRA issues out several of these provincial credit benefits along with the GST/HST credit payments.
You do not need to apply for these programs as you will automatically be considered for them if you are considered eligible for the GST credit. The payments are combined with your GST credit payment and paid as a single sum.
These programs are sponsored and fully funded by the provincial and territorial governments. Some of these provincial and territorial programs include:
British Columbia Action Tax Credit
This is a tax-free payment made to low and middle-income individuals and families to reduce the carbon taxes they pay.
The program provides a credit of $174 for each adult and $51 for each child under 19 years.
Eligibility
To be eligible for the British Columbia Action Tax Credit, an individual must:
- be a resident of British Columbia.
- be 19 years and above.
- have (or had) a spouse or common-law partner.
- be a parent living with a child or children under 19 years.
New Brunswick Harmonized Sales Tax Credit
This is another tax-exempt credit that pays a maximum amount of $300 to individuals and married couples and $100 to each child under 19 years.
When the family's net income is above $35,000, the credit amount is reduced by 2%.
Eligibility
To be qualified for this credit, you must be:
- a resident of New Brunswick.
- 19 years old or above.
- have (or had) a spouse or common-law partner.
- a parent living with the child.
Newfoundland And Labrador Income Supplement
This non-taxable payment is made to low-income families, individuals, and people living with disabilities.
Singles may receive up to $450Boo may receive $510 while $200 is paid for each child under 19 years old.
Eligibility
To be eligible for the program, you must:
- be a resident of Newfoundland and Labrador.
- be 19 years and above.
Newfoundland And Labrador Seniors Benefit
This is a non-taxable payment that provides $1,313 per year to seniors with an income of $29,402 or less.
The benefit is retracted when income exceeds $40,663.
Eligibility
To be eligible for the Newfoundland and Labrador Seniors Benefit, an individual must:
- be a resident of Newfoundland and Labrador.
- be a single senior (65 years and above).
- be married or a common-law couple with at least one senior whose net income is $29,402 or less.
Northwest Territories Cost Of Living Offset
This is a non-taxable credit program that pays $156 for individuals and spouses and $180 for children under 18 years old.
Payment is not income tested so the amounts do not reduce as income increases.
Eligibility
To be eligible for the Northwest Territories Cost of Living Offset, you must have lived in the Northwest Territories for at least 3 months.
Nova Scotia Affordable Living Tax Credit
This is a tax-exempt program designed to pay individuals and couples $255 and an additional $60 for each child under 19 years.
When the family's net income reaches $30,000, the credit amount is reduced by 5%.
Eligibility
To be eligible for the program, you must be a resident of Nova Scotia.
Ontario Sales Tax Credit
The Ontario Sales Tax Credit is issued together with the Ontario Trillium Benefit and is aimed at offsetting the sales tax paid by low and middle-income families.
The program offers $313 per adult and the same amount for each child below 19 years.
The amount starts reducing when the individual net income reaches $24,115 and for families, reduction starts when the family net income reaches $30,143.
Eligibility
To be eligible for the Ontario Sales Tax Credit, you must be a resident of Ontario.
Prince Edward Island Sales Tax Credit
Is a tax-exempt monthly payment that provides $110 to individuals and an additional $55 for spouses and eligible children.
Saskatchewan Low Income Tax Credit
This tax-free monthly payment for Saskatchewan residents offers $346 to each individual and their spouses or common-law partners and $364 for each child under 19 years.
The annual amount is set at $964 per family.
Yukon Government Carbon Price Rebate – Individuals
Offers a tax-exempt credit amount of up to $192 to individuals and spouses. Each child under 19 years can receive the same amount. This program aims to offset the federal carbon pollution pricing level.
Other Government Benefits
Aside from the GST/HST credit, there are other government-sponsored and funded benefit programs you may be eligible for.
Canada Child Benefit (CCB)
The CCB is a monthly tax-exempt financial assistance program aimed at Canadians with children under 18 years to help with the cost of raising children.
It is an income-tested program and eligible Canadian families may receive a maximum amount of $6,833 per year for each child under 6 years and up to $5,765 per year for each child aged 6 to 17.
Canada Workers Benefit (CWB)
The CWB is a government-sponsored tax-free monthly payment made to low-income and middle-income working Canadians.
A single eligible individual can get up to $1,381 while eligible families can get a maximum amount of $2,379 per year depending on their residential provinces.
Child Disability Benefit (CDB)
The Child Disability Benefit (CDB) is a non-taxable benefit that is aimed at families who care for a child or children under 18 years old with severe and prolonged mental or physical disabilities and who are eligible for the Disability Tax Credit (DTC).
The maximum payable amount is $2,915 per year ($242.91 per month).
CRA Digital Services For Individuals
The Canada Revenue Agency (CRA) offers digital services to individuals to enable easy access to certain information such as tax return information and benefit/credit payment details and also help you receive notifications and reminders from the CRA. Some of these services include:
CRA My Account
My Account is online service provided by the CRA that offers you easy access to your income tax and benefits information. You can also manage your tax affairs online, change your return, change your address or phone number, apply for the CCB, receive email notifications from the CRA, etc.
CRA MyBenefits
This is a mobile app provided by the CRA mainly for benefit recipients and also provides quick access to your benefit/credit payment details and eligibility information on all your mobile devices.
MyCRA App
This mobile app helps you view your return status, change your address and any personal information, update your direct deposit information, and view RSSP and TFSA contribution limits on your mobile phone.
Email Notifications From The CRA
To receive email notifications from the CRA you need to sign up for ‘My Account' on the CRA official page. You will be asked to provide an email address. Adding an email address automatically signs you up to receive notifications from the CRA.
Notifications you will receive from the CRA include notifications for any change in your personal information, tax returns information, benefit notices, and other important information that might affect your account.
GST/HST Provincial And Territorial Rates
The goods and services tax (GST) is levied by the federal government, hence, it is applicable in all provinces and territories. It is charged on most goods and services sold in Canada.
Except for Alberta, Northwest Territories, Nunavut, and Yukon, all the other territories charge a Provincial Sales Tax (PST) which is combined with the GST and charged as a single rate.
The ‘harmonizing' of the GST and PST charges forms the Harmonized Sales Tax (HST). Territories like Ontario, Nova Scotia, New Brunswick, Newfoundland and Labrador, and Prince Edward Island have the HST in effect.
The GST, PST, and HST rate for each Canadian province and territory is shown below:
| Province/Territory | GST (%) | PST (%) | HST (Total %) |
| Alberta | 5 | 0 | 5 |
| British Columbia | 5 | 7 | 12 |
| Manitoba | 5 | 7 | 12 |
| New Brunswick | 5 | 10 | 15 |
| Newfoundland and Labrador | 5 | 10 | 15 |
| Northwest Territories | 5 | 0 | 5 |
| Nova Scotia | 5 | 10 | 15 |
| Nunavut | 5 | 0 | 5 |
| Ontario | 5 | 8 | 13 |
| Prince Edward Island | 5 | 10 | 15 |
| Quebec | 5 | 9.975 | 14.975 |
| Saskatchewan | 5 | 6 | 11 |
| Yukon | 5 | 0 | 5 |
GST Payment Dates FAQs
What is the maximum income to qualify for GST?
The maximum income to qualify for GST/HST credit in 2023 is $$49,164 if you are a single individual with no children. For a single or married couple with children, the maximum income differs. Refer to the table above under ‘Maximum Income Threshold'.
Will GST increase in 2023?
Yes, the GST credit payment amount will be increased in July 2023 when it is indexed against inflation. The GST credit amount increases slightly every year due to a rise in the general prices of goods and services. For 2023, the indexation factor is 6.5%.
Can I get retroactive credit payments?
Yes, you can get retroactive GST/HST credit payments for up to 3 years. You can request retroactive payments under the taxpayer relief provided in the Income Tax Act. This will require you to file your income tax returns for those years.
What happens if I am overpaid GST?
If you have been overpaid in GST/HST credit, the CRA will send you a GST remittance form stating the balance you are owing.
This balance will be deducted from your future GST/HST credit payments or income tax refunds till you have covered the overpaid amount.
Can I receive my GST/HST payment as a lump sum?
Yes, you can receive your GST/HST credit payment as a lump sum if the total credit amount will be less than $50 per quarter. If this happens, your GST/HST payment will be made as one lump sum in July.
Why have I not received my GST/HST credit payment?
You may not have received your GST/HST credit payment due to any of the following reasons:
- Your net income is greater than the maximum threshold.
- You are no longer a Canadian resident.
- You have not filed your taxes for the year.
- Your personal information has changed.
Whatever the reason may be, the CRA recommends that you wait for 10 business days before contacting them. While waiting, you can check ‘My Account' on the CRA website for any correspondence from the CRA.
In Summary
The GST/HST credit scheme is one of the most popular in Canada. Sponsored and fully funded by the government, the GST/HST is income-tested and aims to offset some of the taxes levied on goods and services. The credit is paid quarterly to low-income and middle-income individuals and families. The credit is a reimbursement of the sales taxes paid by low-income Canadians.
To ensure that you receive your quarterly GST/HST credit, file your income and benefit tax returns yearly to automatically enroll for the year.
