The GST/HST credit is one of the most important — and most overlooked — benefits for newcomers to Canada. It is a tax-free quarterly payment from the government designed to help people with low and modest incomes offset the sales tax they pay. Many newcomers miss it simply because nobody told them it exists.
The GST/HST credit is a quarterly tax-free payment from the Canada Revenue Agency. It is designed to help individuals and families with low to moderate incomes offset the Goods and Services Tax (GST) or Harmonized Sales Tax (HST) they pay on everyday purchases. It is not a loan — it is money the government gives you.
To receive the GST/HST credit you must be a Canadian resident for tax purposes, be 19 years of age or older, or have a spouse or common-law partner, or be a parent living with your child. As a newcomer, you may be eligible in the year you arrive in Canada. The amount you receive depends on your family net income and the number of children you have.
You do not apply separately for the GST/HST credit. The CRA automatically considers you when you file your income tax return. This is one of the most important reasons newcomers should file a tax return even if they had no income — filing is what triggers the credit.
Payments are made four times per year: in January, April, July, and October. The amount is based on your previous year's tax return. Set up direct deposit through My CRA Account to receive payments directly in your bank account on payment day.
The amount varies based on your income, marital status, and number of children. For a single individual with no children and low income, the annual credit is typically between $300 and $500. For families with children, it can be significantly higher. The lower your income, the higher the credit.
Not sure if you qualify for the GST/HST credit? Ask TaxNorth — free guidance in any language.
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