GST/HST credit — quarterly payments for low/middle income
Goods and Services Tax credit
Section 122.5 provides a refundable quarterly credit to low- and middle-income individuals and families to offset the GST/HST they pay on everyday expenses. It is income-tested and phase out at higher incomes.
Plain-language explanation
The GST/HST credit under s.122.5 is a quarterly tax-free payment made by CRA to eligible Canadians to offset the GST or HST they pay on purchases. It is fully refundable — you receive it even if you owe no tax.
Eligibility: You must be a Canadian resident, be 19 or older (or have a spouse/common-law partner, or be a parent), and have filed a prior-year tax return. Entitlement is based on your prior year's family net income.
How it is calculated: The base credit is $496 per adult (2026 estimated), $496 for the spouse/common-law partner, and $131 per child under 19 (2026 approximate). The amount is reduced by 5% of family net income over approximately $40,000 (income thresholds are indexed annually).
Quarterly payments: CRA pays the credit in four installments — July, October, January, and April. CRA automatically calculates the credit when you file your tax return, so there is no separate application.
Child component: An additional amount is provided for each child under 19, and a supplement is available for single parents. Lower-income families with children receive the most benefit.
Example
Single parent Nicole has two children and a net income of $35,000 in 2025. For the July 2026 to June 2027 payment period, her annual GST credit is approximately: $496 (herself) + $496 (single supplement) + $131×2 (children) = $1,254 per year, paid quarterly at approximately $313.
Amendment history
Significant changes to this provision. Older versions help you understand rules that applied in prior tax years.
Temporary GST Credit doubling — the government doubled the GST credit for six months (November 2022 to March 2023) for eligible recipients, providing up to $467 for single individuals, $612 for couples, and $161 per child.
Common questions
Do I need to apply for the GST credit? +
No separate application is needed. CRA automatically determines your eligibility when you file your income tax return. You must file a return even if you have no income to receive the credit.
When does the GST credit phase out? +
The GST credit phases out gradually as family income rises above approximately $40,000 (2026), declining at 5% of income above that threshold. A single person with no children receives no credit at approximately $50,000 of income. Thresholds are higher for families.
Key terms
Related sections
Source: Income Tax Act, RSC 1985, c. 1 (5th Supp.), section 122.5. — Read the official text on Justice Canada
These summaries are for educational purposes only and do not constitute legal or tax advice. Speak with a CPA for advice on your specific situation.