The GST/HST Credit: What It Is and Who Qualifies

What the credit actually is

The GST/HST credit exists to soften the impact of federal sales tax on people with lower and modest incomes. Because GST (or HST, depending on your province) applies to most purchases regardless of how much you earn, it takes a bigger bite out of a smaller paycheque. The credit is the federal government's way of giving some of that money back.

It's paid out quarterly — four times a year — as a direct deposit or cheque from the CRA. The payment is entirely tax-free: you don't include it as income on a future return, and receiving it doesn't push you into a higher tax bracket or reduce your other entitlements.

Several provinces and territories bundle their own credits into the same payment. You might see amounts related to a provincial sales tax credit or climate-related rebate combined with the federal GST/HST credit in a single deposit, which is why the amount can look different from what you'd calculate using federal rules alone.

Who qualifies

Eligibility is based on residency and age rather than employment status, so it's available to students, retirees, part-time workers, and people between jobs. In general, to qualify you need to be a resident of Canada for income tax purposes and be 19 or older — though there are exceptions if you have a spouse, common-law partner, or child, even under 19.

• You must be a Canadian resident for tax purposes in the month before and at the start of the month the CRA makes a payment.
• You generally need to be 19 or older, unless you have (or had) a spouse or common-law partner, or you are a parent living with your child.
• Your (and your spouse or common-law partner's, if applicable) net family income must fall under a threshold that the CRA sets and adjusts periodically — there is no fixed dollar cutoff that stays the same year to year, so don't rely on an old number.

New residents of Canada, including newcomers with permanent resident status or certain temporary residents, may also qualify, but often need to apply using a specific CRA form in their first year rather than through a regular tax return.

How the amount is calculated

The CRA doesn't ask you to calculate your own credit. Instead, it uses the information from your (and your spouse's or common-law partner's) tax return — net family income, marital status, and number of children under 19 — to determine both eligibility and the payment amount automatically.

Generally speaking, the credit works on a sliding scale: it's highest for individuals and families with the lowest net income, and it gradually phases out as income rises, disappearing entirely above a certain threshold. The base amount also increases with each additional qualifying child in the household.

Because the calculation depends on your prior year's tax return, there's a lag — payments for a given benefit year are based on the return you filed for the previous tax year. This is one of the biggest reasons the CRA emphasizes filing on time, even when you owe nothing.

Why filing your taxes matters even with no income

This is the part people miss most often: the GST/HST credit isn't something you check a box for on a separate application. The CRA determines your eligibility automatically based on your annual tax return, which means the return itself is effectively your application.

If you had no income at all in a given year, you still need to file a return to be considered. Skipping your return because "I didn't earn anything, so I don't owe tax" is one of the most common reasons eligible Canadians miss out on this money.

The same logic applies to your spouse or common-law partner — both of you generally need to file returns, since the CRA calculates the credit based on combined net family income, not just your own.

Frequently asked