For many Canadians, the Goods and Services Tax/Harmonized Sales Tax (GST/HST) credit provides a steady source of relief that helps stretch household budgets just a little further. It is not a flashy benefit, but for low- and modest-income families and individuals, it can make the difference between getting by comfortably and feeling the pinch each month.
The GST/HST credit is a refundable, non-taxable amount paid out by the Government of Canada to offset some or all of the sales taxes people pay on goods and services. Unlike other tax breaks that appear only at filing time, this one arrives in the form of quarterly payments. In 2021, the scheduled dates are January 5, April 1, July 5, and October 5.
If the credit calculated for you is less than $50 per quarter, the Canada Revenue Agency (CRA) issues a single lump-sum payment for the entire year instead. That annual payment typically goes out in July, so instead of receiving four small deposits, you would see one larger amount that covers the whole period.
Who Qualifies for the GST/HST Credit?
Eligibility depends on income and age, but the CRA has a straightforward rule: you must be at least 19 years old to begin receiving payments. If you qualify and turn 19 during the year, your first credit is sent the month after your birthday.
Delays occasionally happen. If you do not see your payment on the scheduled date, CRA asks that you wait ten additional business days before calling their help line at 1-800-387-1193. This waiting period allows time for the payment to work its way through the banking system.
How the Credit Is Calculated
Two elements drive the GST/HST credit amount you receive:
- The base year: This refers to the tax return year CRA uses to calculate your credit.
- The payment period: This is the 12-month span during which credits are issued, beginning each July and running through the following June.
Your household income, marital status, and number of eligible children all factor into the calculation. This means even small changes in your personal situation can affect the credit amount.
When Your Credit May Be Recalculated
The CRA will revisit your credit entitlement whenever something changes that could alter your net income or family circumstances. Common triggers include:
- A reassessment of your own, your spouse’s, or your common-law partner’s tax return
- A change in marital status, such as marriage, separation, or divorce
- An adjustment in the number of eligible children in your household
- The death of someone who was receiving the credit
Each of these events can cause your credit to be recalculated, sometimes increasing the amount you receive, and in other cases, reducing it.
If You Are Overpaid
Overpayments are not uncommon. When they happen, CRA will notify you of the amount owed. Instead of sending a bill collector, the agency simply applies future GST/HST credits or tax refunds toward the balance until the overpayment is cleared. In some cases, the credit may also be offset against other amounts owed to federal, provincial, or territorial programs.
Maximum Amounts for 2021
For the 2021 payment year, the maximum GST/HST credit amounts are as follows:
- $592 for married or common-law couples
- $451 for single individuals
- An additional $155 for each child under 19
These payments are based on the household’s net income from the previous tax year. For example, the credit year that begins in July 2021 is determined using income reported on the 2019 return.
It is worth noting that in April 2020, as part of a special one-time measure, eligible recipients received an extra GST/HST credit payment that doubled their regular entitlement. That extraordinary payment provided added support during the economic uncertainty of the early months of the COVID-19 pandemic.
Why It Matters
The GST/HST credit is not designed to replace income or cover large expenses. Its purpose is narrower but still vital: to soften the bite of sales taxes for Canadians who feel it most. For a family with children, those quarterly payments can help cover school supplies, groceries, or utility bills. For a single adult, they can make a small but meaningful dent in everyday living costs.
Millions of households rely on this program each year, and for many it serves as a quiet but reliable form of financial relief.
For 2021, whether you are receiving your first payment as a new 19-year-old recipient or waiting for the annual July installment that launches a new payment cycle, the credit continues to be a small but important tool in keeping Canadian households financially balanced.
