Introduction to GST/HST Credit
The Goods and Services Tax (GST) and Harmonized Sales Tax (HST) credit is a tax-free payment that the Canadian government provides to individuals and families with low and modest incomes. To be eligible for this credit, you must meet certain criteria and not fall under specific categories that disqualify you from receiving it.
Who Does Not Qualify for the GST/HST Credit
You cannot qualify for the GST/HST credit if one of the following conditions applies to you:
- You are not considered a resident of Canada.
- You are exempt from paying taxes.
- You have spent 90 consecutive days or more in prison or a similar institution.
- The intended recipient of the credit has passed away.
Calculating Your GST/HST Credit
The amount of the GST/HST credit you can receive depends on your income and family size. The maximum amounts for the base year 2024, which will be paid from July 2025 to June 2026, are as follows:
- Up to $533 if you are single.
- Up to $698 if you are married or have a common-law partner.
- Up to $184 for each child under the age of 19.
Your eligibility and the amount you receive can change if your circumstances change. Factors that can influence your GST/HST credit include:
- A change in your family’s net income after filing a tax return.
- A child turning 19.
- A change in your marital status.
- A change in the number of eligible children in your care.
- A change in the shared custody of a child.
- The death of the recipient.
Applying for the GST/HST Tax Credit
In most cases, you do not need to apply for the GST/HST credit. If you are a Canadian resident and filed your tax return the previous year (even if you had no income), the government will automatically determine whether you are eligible and how much you are entitled to based on that return.
Special Consideration for New Immigrants
If you are a new Canadian resident, you will need to apply for the GST/HST credit. New residents without children can fill out a quick online form on the Canada Revenue Agency (CRA) website. To do this, you will need to have the following information ready:
- Your name.
- Date of birth.
- Address.
- Telephone number.
- Social Insurance Number (SIN).
- Information about your residence and income for the last 36 months.
New residents with children need to print and fill out form RC151 and then submit it along with proof of birth (such as a birth certificate) for all children they are applying for. If you are also eligible for the Canada Child Benefit, you should use form RC66 instead.
Conclusion
The GST/HST credit is an important benefit for individuals and families with low and modest incomes in Canada. Understanding who qualifies, how the credit is calculated, and how to apply (especially for new immigrants) can help ensure that you receive the financial support you are eligible for. Always review the most current information and criteria, as they can change, and consult with the CRA or a tax professional if you have specific questions or concerns about your eligibility for the GST/HST credit.