Is Canada increasing its GST rate in 2025? This question has been circulating among Canadians, sparking curiosity and concern. The short answer is no, there has been no official announcement regarding an increase in the Goods and Services Tax (GST) rate, which remains at 5%. However, recent developments around GST/HST credits and inflation adjustments are worth understanding.
In this article, we’ll break down the latest GST-related updates for 2025, including key information on GST/HST credits, payment schedules, and practical tips to maximize your benefits. Whether you’re a professional, a family provider, or simply looking to stay informed, this guide has everything you need.

GST Increase News for 2025 in Canada:
Topic | Details |
---|---|
GST Rate in 2025 | Remains at 5%; no increase announced. |
GST/HST Credit Amount | Up to $519 per individual, $680 per couple, plus $179 per child (July 2024 – June 2025 period). |
Next Payment Date | January 3, 2025. |
Temporary Tax Relief | GST/HST holiday on qualifying items (December 14, 2024 – February 15, 2025). |
Official Source | Canada Revenue Agency (CRA) for updated information. |
While there’s no GST rate increase in 2025, the government’s focus on adjusting credits and providing temporary tax relief demonstrates its commitment to supporting Canadians. Whether you’re tracking your GST/HST credit payments or benefiting from the GST/HST holiday, staying informed ensures you maximize these opportunities.
What is the GST?
The Goods and Services Tax (GST) is a 5% federal tax applied to most goods and services sold in Canada. Some provinces, like Ontario and British Columbia, combine this tax with a Provincial Sales Tax (PST) to form the Harmonized Sales Tax (HST).
For example:
- In Ontario, the HST rate is 13%, combining 5% GST with 8% PST.
- In Alberta, only the 5% GST applies since there is no PST.
Understanding how GST works is crucial for budgeting and financial planning, especially for families and businesses.
GST/HST Credit Adjustments for 2025
The GST/HST credit is a tax-free quarterly payment provided by the government to help low- and modest-income Canadians offset the cost of GST or HST. This credit amount is reviewed and adjusted annually to account for inflation.
Updated Credit Amounts for 2024-2025
For the payment period from July 2024 to June 2025:
- Single individuals can receive up to $519.
- Married or common-law couples can receive up to $680.
- Each child under 19 adds an additional $179 to the total amount.
These amounts are adjusted based on family income and calculated automatically when you file your taxes.
How to Check Eligibility
- File your taxes on time: Ensure you’ve submitted your 2024 tax return by the deadline.
- Meet income requirements: The CRA assesses eligibility based on your family’s adjusted net income.
- Provide updated information: Notify the CRA of any changes, such as marital status or number of children.
Temporary GST/HST Holiday: What You Should Know
In response to rising living costs, the federal government introduced a GST/HST holiday on qualifying items. This temporary measure waives GST/HST on essential goods, providing immediate relief to Canadians.
When Does It Apply?
- Start Date: December 14, 2024
- End Date: February 15, 2025
What Items Are Included?
- Basic groceries (e.g., milk, bread, fresh produce)
- Essential healthcare products (e.g., prescription medications, medical devices)
- Children’s clothing and footwear
This initiative aims to make essential items more affordable during the winter months. For a complete list of eligible items, check this government resource.
How to Maximize GST/HST Credits
If you’re eligible for the GST/HST credit, here are steps to ensure you receive the full benefit:
1. File Taxes Early
File your taxes before the April deadline to avoid delays in receiving your payments. Use certified tax software or consult a professional if needed.
2. Keep CRA Information Updated
If you’ve recently moved, changed your marital status, or had a new child, update your records with the CRA to avoid interruptions.
3. Leverage CRA Tools
Sign up for CRA’s My Account to:
- View your payment schedule
- Update personal details
- Access historical GST/HST credit payments
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FAQs About GST and HST in 2025
1. Will the GST rate increase in 2025?
No, there has been no announcement of a GST rate increase. The federal rate remains at 5%.
2. What is the next GST/HST credit payment date?
The next payment is scheduled for January 3, 2025.
3. Can I claim GST/HST credit for past years?
Yes, if you were eligible but didn’t receive payments, you can request a reassessment by filing tax returns for the applicable years.
4. Are businesses affected by the GST/HST holiday?
Businesses selling eligible items during the holiday period must adjust their billing to remove GST/HST charges. Visit the CRA website for implementation guidelines.
5. How does inflation impact GST/HST credits?
Credit amounts are adjusted annually based on the Consumer Price Index (CPI), ensuring support keeps pace with inflation.