GST/HST Credit Eligibility and Calculation

If you have ever received a small deposit from the Canada Revenue Agency (CRA) labeled “GST/HSTC,” you may have wondered what it was for or whether you were eligible for more. The GST/HST credit is a tax-free quarterly payment designed to help individuals and families with low to modest incomes offset the cost of goods and services taxes. Yet many Canadians are unclear about how it is calculated or even whether they qualify.

This matters when you are filing your income tax return, budgeting for quarterly income, or estimating the support available during periods of lower earnings. Whether you are early in your career, raising a family, or managing retirement income, understanding this credit can give you a clearer picture of your full financial toolkit.

Who Is Eligible for the GST/HST Credit?

Eligibility for the GST/HST credit is based on a combination of your net family income, marital status, and whether you have children under 19. It is available to Canadian residents who are 19 or older, or younger individuals who are married or have children.

You may qualify if:

• You are a Canadian resident for income tax purposes.

• You are at least 19 years old before the month the credit is paid.

• Or, if you are younger than 19, you are married or common-law, or a parent living with your child.

• Your net family income falls below a certain threshold, which is updated annually by the CRA.

The credit is automatically assessed when you file your annual income tax return. There is no separate application. However, you must file a return each year, even if you have no income, to be considered.

This becomes especially relevant if your income temporarily drops due to a career change, parental leave, or retirement. Failing to file a return could mean missing out on quarterly payments you are otherwise entitled to receive.

How Is the GST/HST Credit Calculated?

The amount you receive is based on your previous year's tax return and your adjusted family net income. This includes your own and your spouse or common-law partner’s net incomes, adjusted for certain deductions.

For the July 2024 to June 2025 payment period, the base amounts are:

• $325 for a single person

• $325 for a married or common-law couple

• $171 per child under the age of 19

These amounts are gradually reduced as your family income rises. For example, in 2024, the credit begins to phase out once a family’s net income exceeds approximately $41,000. The exact thresholds and reductions are adjusted annually for inflation.

Let us say you are a single parent with two children and a net income of $38,000. Your base credit would be:

• $325 (base)

• • $171 × 2 children = $342

• = $667 total

This amount is paid out in four quarterly installments. These typically arrive in July, October, January, and April.

If your income increased significantly in 2023, you might see a reduced credit or no payment at all in the 2024–2025 period. Conversely, if your income dropped, you could receive more.

How Life Changes Can Affect Your Credit

Because the GST/HST credit is based on your prior year's return, life changes such as marriage, divorce, or the birth of a child can affect your eligibility and payment amount. Often, this happens with a delay.

It is important to notify the CRA promptly of changes in your marital status or the number of children in your care. This helps ensure your credits reflect your current family situation.

You might think about this the next time you:

• Get married or separate

• Welcome a new child into your family

• Retire or take a sabbatical

• Transition to part-time work or self-employment

These shifts often lead to significant income changes that can influence your credit for the upcoming cycle.

What If Your Income Is Low but You Did Not Receive a Credit?

The most common reason people miss out on the GST/HST credit is simply that they did not file a return. Even if your income was zero or non-taxable, filing is the only way the CRA can determine your eligibility.

You may also have forgotten to update your marital status or child custody information with the CRA. In some cases, an administrative error or a misreported income figure could disqualify you temporarily.

At Optimize, we help you stay ahead of these issues by integrating tax considerations into your overall financial plan. If your income is approaching the eligibility threshold, we help forecast future credits and guide your filing strategy so you do not leave money on the table.