Every time you go to the checkout counter, do you blink twice at how many items have gone up in price? And higher prices mean higher tax. For example, that protein smoothie and poke bowl you bought for lunch likely cost you more than usual (so much for trying to be healthy!). These days, it feels as though Canadians are jumping through hoops just to afford daily living.
You may be able to catch a break with the goods and services tax/harmonized sales tax (GST/HST) credit. Funded by the federal government, it’s designed to help individuals and families with low to modest incomes cover the amount of GST or HST they pay throughout the year.
Read on for the GST/HST payment schedule, as well as info on eligibility, and how you can apply for the credit.
- The GST/HST credit payment dates for the 2022 tax year are: July 5, 2023, October 5, 2023, January 5, 2024, and April 5, 2024.
- As long as you file your tax return, you’ll automatically be considered for the GST/HST credit.
- If your life circumstances change—you get hitched or have kids—be sure to notify the CRA so they can recalculate your payments.
When are the GST/HST payment dates?
Mark your calendars! The credit is given out on a quarterly basis. Here are the GST/HST rebate dates for the 2022 tax year:
- July 5, 2023 (which you should’ve received)
- October 5, 2023
- January 5, 2024
- April 5, 2024
If your overall GST/HST credit for 2022 amounted to less than $50 per quarter, the Canada Revenue Agency (CRA) would have provided you with a one-time payment on July 5.
If you received two payments in your bank account on July 5, 2023, consider yourself lucky—and thank the federal government for its Grocery Rebate (which was issued on the same date).
Who is eligible for GST/HST credit?
The qualifications for the GST/HST credit are relatively straightforward. To be eligible, you must:
- Be a Canadian resident and at least 19 years of age, or
- Be a Canadian resident and, if you’re under age 19, meet one of the following requirements:
- have (or had) a spouse/common-law partner
- be a parent and live (or have lived) with your child
If you’re new to Canada and looking to save on taxes this year, here’s a video that covers some of the tax credits you can take advantage of:
How much GST/HST credit will you get?
The amount you can expect to receive is based on several factors:
- Your net income (if you’re single) or your family’s net income (if you have a spouse or common-law partner)
- If you have children under age 19 and you receive the Canada Child Benefit (CCB)
To give you an idea, here are a few scenarios of the maximum annual payment. This is based on the 2022 tax year with payments from July 2023 to June 2024:
- Single with no children: $496 (if you earn between $20,000 and $40,000)
- with 1 child: $821
- with 2 or more children: an additional $171 each
- Married or common-law partner with no children: $650 (if you earn under $42,335)
- for each child under the age of 19: an additional $171
For more detailed information on the payment amounts, you can view the handy payments chart here. You can also receive an estimate of what your rebate amount will be by using the CRA’s child and family benefits calculator.
It’s also worth noting that the GST/HST credit is non-taxable. So you don’t have to claim it on your return come tax time.
Knowing the amount to expect can help you plan ahead and decide how you’ll make use of the money. Perhaps you can boost your savings goals (back-to-school shopping, anyone?) or wisely use it to pay off some credit card debt.
How do you apply for the GST/HST credit?
The last thing anyone wants to do is fill out another application form. Well, good news for you, you don’t have to—hooray! When you file your tax return, you’ll automatically be considered for the credit (which is an incentive to file your taxes on time).
How will you receive the GST/HST payments?
If you’ve set up direct deposit with your online bank, then it should be easy. In your bank account, it’ll appear as “GST/HST tax credit” or “Canada FPT” (which stands for Federal-Provincial-Territorial).
If you opted for a cheque, it will be mailed out—but it will take longer to process. Your payment should arrive within 10 business days. If you don’t receive a payment, you can contact the CRA.
When will your GST/HST be recalculated?
Every now and then, life circumstances change. When this happens, the CRA will reassess your payment. Here are the scenarios that will impact your payment amount:
- Changes to your (family’s) net income
- Change to your marital status
- Change in the number of children you have
- When one of the recipients passes away
Don’t delay! It’s always a good idea to contact the CRA as soon as these life changes occur, so they can keep accurate records and review and reevaluate your GST/HST payments. You’ll then receive a statement from the CRA indicating the revised annual credit amount.
Now that you have the low-down on how the GST/HST credit works, you can use these quarterly payments to pay your monthly bills or treat yourself to a day at the spa!
Seem complicated? We’re here to help
We’re here to help TurboTax software guides you step-by-step so you’re confident your taxes are done right, and you’ll get every dollar you deserve.