The rising cost of living in Canada has placed significant pressure on households in recent years. In response, the federal government introduced a one-time $250 GST Relief Payment in 2025. This tax-free payment is designed to offer direct financial support to low- and middle-income Canadians, helping them better manage everyday expenses.
If you’re wondering whether you qualify or how the money will reach you, this complete guide covers all the essential details.
What Is the $250 GST Relief Payment?
The $250 GST Relief Payment is not a new benefit program. Instead, it is a one-time supplement to existing federal supports such as the GST/HST Credit. It aims to ease inflation-related burdens for Canadians who may not be fully covered by other financial assistance programs.
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Unlike many benefits, you don’t need to apply. If you’re eligible, the Canada Revenue Agency (CRA) will automatically issue the payment based on your most recent tax filing.
Key Details at a Glance
| Feature | Details |
|---|---|
| Payment Amount | $250 (tax-free) |
| Payment Date | Expected in July 2025 |
| Eligibility Criteria | Resident of Canada, filed 2023 taxes, earned income, income under $150,000 |
| Application Needed | No |
| Delivery Method | Direct deposit or cheque |
| Administered By | Canada Revenue Agency (CRA) |
Why the Payment Was Introduced
The 2024 inflation rate in Canada hovered around 3.9%, affecting essentials like rent, food, and transportation. The $250 relief payment is part of a targeted strategy to:
- Help Canadians with low or moderate incomes manage rising expenses
- Fill the gap for those not receiving other supports
- Enhance existing federal benefits like the GST/HST Credit and Canada Workers Benefit (CWB)
Though modest, this tax-free payment can make a meaningful difference for qualifying individuals and families.
Who Is Eligible for the GST Relief Payment?
To receive the $250 in July 2025, you must meet all of the following criteria:
- Be a Canadian citizen or permanent resident by December 31, 2023
- Have filed a 2023 income tax return
- Earned income from employment during 2023
- Have a net income under $150,000 for 2023
Examples:
- Jane, who earned $45,000 in 2023 and filed taxes, qualifies
- Peter, a retired senior with no work income in 2023, does not qualify
How to Ensure You Get the $250 Payment
Although the CRA sends the payment automatically, there are a few steps you can take to make sure you don’t miss out.
Step 1: File Your 2023 Tax Return
Whether you had high or low earnings—or even none—filing your taxes is critical. The CRA uses your tax return to verify eligibility.
Step 2: Set Up Direct Deposit
The fastest way to receive your payment is via direct deposit. You can set it up in one of two ways:
- Through your CRA My Account
- Using your bank’s online services
Step 3: Update Your CRA Details
Ensure that your address, marital status, and banking information are current to avoid delays or misrouted payments.
Step 4: Monitor Your CRA Account
Log in to your CRA online account regularly to see when your payment is issued or if further information is needed.
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When Will Payments Be Issued?
The CRA expects to begin distributing payments in July 2025.
- If you use direct deposit, the funds should arrive earlier in the month
- Paper cheques may take an extra few weeks to reach you
- Haven’t received anything by mid-July? You can contact the CRA to follow up
Who Should Keep an Eye on This Benefit
Even if you’re not eligible now, you could be in the near future. You may qualify if you are:
- A student who worked during 2023
- A new employee who re-entered the workforce
- Someone already receiving the GST/HST Credit
In some cases, the CRA may notify you via email or portal updates. Make sure you regularly check your account for status changes.
You Don’t Need to Report the $250 Payment on Taxes
One of the major advantages of this relief payment is that it’s non-taxable. That means:
- You do not have to declare it on your 2025 tax return
- It won’t impact your eligibility for other income-tested benefits
This makes it a clean, no-strings-attached support tool to help ease the financial load.
Other Government Supports You May Be Missing
The $250 is just one of many financial supports available to Canadians in 2025. You may also qualify for:
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- GST/HST Credit – paid every quarter to low-income earners
- Canada Child Benefit (CCB) – monthly payments for families with children
- Canada Workers Benefit (CWB) – a refundable tax credit for low-income workers
- Provincial assistance programs – several provinces offer top-ups or supplemental benefits
A few extra minutes of research could uncover hundreds more in available support, helping to improve your monthly budget.