GST/HST Credit - What is it & How to Apply

Tax season is always a mixed bag of emotions—there’s hope that you may be able to get some of your money back and then there’s fear that you may owe some more in taxes to the government. One such credit that may bring you some good news is the GST/HST credit. As a tax-payer in Canada, you may be eligible to receive a portion of the sales tax you pay on consumer goods and purchases.

What is the GST/HST Credit

Goods and Services Tax/Harmonized Sales Tax credit or the GST/HST credit is issued by the Canada Revenue Agency (CRA) to qualifying low to moderate income families to compensate for the cost of the Goods and Services Tax (GST) and the Harmonized Sales Tax (HST) we pay on most of our purchases throughout the year.

How the GST/HST credit works

GST/HST rebate payments operate on a June-July cycle. You can expect to receive your GST/HST credit for the 2022 tax year (1 January to 31 December 2022) from July 2023 to June 2024.

How to apply for GST/HST credit

You don’t need to apply for GST/HST credit; you just need to make sure you’ve filed your tax returns correctly. After you file your taxes, the CRA will automatically determine your eligibility and deposit the credits into your bank account on a quarterly basis. There are a number of factors that go into the calculation of how much credit you may get, factors such as your income, marital status, number of dependents, and how long you’ve been a Canadian resident for tax purposes.

If you recently became a Canadian resident, you may be eligible for a GST/HST rebate. If you don’t have any children, you can fill out the RC151 GST/HST Credit and Climate Action Incentive Payment Application or if you have children, you can fill out the RC66 Canada Child Benefits Application to receive credits.

Who is eligible for GST/HST credit

The CRA calculates your GST credit eligibility when you file your taxes for the previous year. In addition to fitting into the low-to-moderate income bracket defined by the CRA, you need to also meet at least one of the following criteria:

1. You must be at least 19 years of age

2. You have (or had) a spouse (or a common-law partner)

3. You have (or had) a child (or children) and live (or lived) with them

Also, you need to be a Canadian resident for income tax purposes in the month prior and in the month in which the CRA makes the GST credit payment to your account.

What is the maximum income for GST/HST credit in 2023

The GST/HST credits you’ll receive till June 2023 will be based on the tax you filed for the 2021 tax year. You’re ineligible to receive GST/HST credit if, at the time of filing your 2021 taxes, you were:

1. Single, had no children, and your income was over $49,166

2. Married or lived with a common-law partner, had no children, and your net household income was over $52,066

You’re also ineligible to receive GST/HST credit if, at the time of filing your 2021 taxes, you had:

1. One child and your net household income was over $55,286

2. Two children and your net household income was over $58,506

3. Three children and your net household income was over $61,726

4. Four children and your net household income was over $64,946

The CRA has a handy calculator you can check out to calculate the exact amount you can expect to receive in benefits for the 2022 tax year.