CRA 2025 Benefit Update
How the CRA Has Changed Eligibility and Amounts for the GST/HST Credit and Ontario Trillium Benefit in 2025
As the cost of living continues to press on Canadian households, the Canada Revenue Agency (CRA) has made important adjustments to two of its most widely accessed benefit programs: the Goods and Services Tax / Harmonized Sales Tax (GST/HST) Credit and the Ontario Trillium Benefit (OTB). Both programs have been updated for the 2025 benefit cycle, reflecting higher payment thresholds, inflation-indexed amounts, and refined eligibility rules designed to deliver more support to low- and modest-income Canadians and Ontarians. This article provides a comprehensive overview of what has changed, who qualifies, and how much eligible recipients can expect to receive.
Understanding these updates is essential for anyone filing their 2024 income tax return, since the CRA uses prior-year tax information to calculate benefit entitlements. The payment period running from July 2025 to June 2026 is based on the 2024 base year, which means your 2024 filing directly determines the size of the benefits you will receive throughout 2025 and into 2026.
Part One: The GST/HST Credit — 2025 Updates
What Is the GST/HST Credit?
The GST/HST Credit is a federal, non-taxable quarterly payment administered by the CRA. Introduced in 1991 alongside the implementation of the Goods and Services Tax, it was designed to offset a portion of the sales taxes paid by low- and modest-income Canadians on everyday goods and services. The benefit is automatically calculated by the CRA when a tax return is filed, so no separate application is required for most Canadians.
As of 2025, approximately 11 million Canadians are expected to receive the credit, making it one of the most broadly distributed federal income support tools in the country.
How Much Has the Credit Increased?
For the 2024 base year (payment period July 2025 to June 2026), the CRA indexed the GST/HST Credit by 2.7% over the prior year’s amounts. This adjustment follows the Consumer Price Index (CPI) and is applied each July when the new benefit year begins. While modest, it provides consistent inflation-linked protection to recipients so that rising prices do not silently erode the value of the benefit.
The following table summarizes how the credit amounts have evolved over recent base years, showing the steady upward trend across all credit categories:
The 2024 base year amounts represent the current cycle in effect throughout most of 2025. A single individual without children can receive a maximum of $533 per year when the additional supplement for lower-income single adults is factored in, while a couple without children can receive up to $698 annually. Each eligible child under the age of 19 adds $184 to the household’s entitlement.
New Income Thresholds for 2025
A key change in the 2025 benefit cycle is the upward adjustment of the income thresholds that govern who qualifies and how much they receive. For single individuals, the phase-in threshold — the income level at which the additional supplement begins to be added to the base credit — rose from $11,039 (2023 base year) to $11,337 for the 2024 base year. The phase-out threshold, the income level at which the credit begins to taper toward zero, also rose to $45,521 for couples, up from $44,324 the prior year.
These adjusted thresholds are significant because they allow Canadians who received small pay increases in 2024 to remain eligible for the full benefit, rather than being prematurely pushed out of the program by modest income gains that do not truly represent improved financial security.
For reference, the 2025 payments chart for single individuals shows the following annual entitlements by income level:
Eligibility Rules: Who Qualifies?
The core eligibility criteria for the GST/HST Credit have remained consistent but the CRA has reinforced several nuances in how eligibility is determined and communicated. To qualify, an individual must:
• Be a Canadian resident for income tax purposes at the start of the month in which the CRA makes a payment.
• Be at least 19 years of age, or have (or previously had) a spouse or common-law partner, or be (or have been) a parent living with a child.
• Have filed a 2024 income tax return, even if no income was earned during the year.
• Have an adjusted family net income (AFNI) below the applicable phase-out threshold.
Children are automatically registered for the GST/HST Credit if a parent is currently eligible for the Canada Child Benefit. When a child turns 19, the CRA automatically recalculates the household entitlement to remove the child component, effective the quarterly payment following the birthday. Newcomers to Canada must complete Form RC151 to apply manually for the credit in their first year of tax residency.
The Canada Groceries and Essentials Benefit: What’s Coming Next
Looking ahead, the federal government announced a significant enhancement to the GST/HST Credit framework in January 2026 under the name Canada Groceries and Essentials Benefit (CGEB). While this formally begins in 2026, its design was announced and debated throughout 2025 and directly impacts how Canadians should think about the future of the credit. The CGEB has two components: a one-time lump-sum top-up equal to 50% of a household’s 2025–26 GST/HST Credit entitlement, to be paid no later than June 2026; and a 25% permanent increase to the base credit beginning July 2026, indexed to inflation for five years.
The one-time top-up means a single senior with $25,000 in net income could receive approximately $267, while a family of four with $40,000 in household income could receive up to $533 as a lump sum. These are illustrative amounts; actual payments will vary based on individual circumstances. The 2026–27 base amounts after the permanent increase are projected to rise to roughly $679 for a single adult and $890 for a couple, compared to current maximums of $533 and $698 respectively.
Part Two: The Ontario Trillium Benefit — 2025 Updates
What Is the Ontario Trillium Benefit?
The Ontario Trillium Benefit (OTB) is a provincial program legislated and funded by the Government of Ontario and administered on its behalf by the CRA. It combines three separate provincial tax credits into a single monthly payment, simplifying support delivery for eligible Ontarians. The three component credits are:
• Ontario Energy and Property Tax Credit (OEPTC): Helps offset costs from property taxes and residential energy expenses.
• Northern Ontario Energy Credit (NOEC): Provides additional support for residents of Northern Ontario districts facing higher home energy costs.
• Ontario Sales Tax Credit (OSTC): A non-means-tested credit that offsets provincial sales tax paid on everyday purchases.
Recipients must qualify for at least one of the three credits to receive the OTB. The CRA calculates the benefit automatically using the information from the prior year’s income tax return. For the 2025–26 OTB benefit year (July 2025 to June 2026), the calculation is based on the 2024 tax return.
July 2025 Increases: The Biggest Boost Yet
In July 2025, the Ontario government implemented inflation-adjusted increases to all three components of the OTB. These increases were the largest in several years and were explicitly designed to help residents manage rising energy bills, property-related costs, and general living expenses. The updated maximum annual amounts for the 2025–26 benefit year are as follows:
A family with dependants living in Northern Ontario who qualifies for the maximum amounts of all three credits can now receive more than $2,200 annually, representing a meaningful increase over prior years. For most eligible households in Southern Ontario, the combined OEPTC and OSTC can reach or exceed $2,100 per year depending on income, age, and housing situation.
Eligibility Changes and Clarifications
The CRA and the Province of Ontario have also clarified and in some cases tightened the specific eligibility conditions for each component. Broadly, to receive the OTB for the 2025–26 benefit year, an individual must:
• Be a resident of Ontario on December 31, 2024.
• Have filed their 2024 personal income tax return, including the ON-BEN Application Form.
• Meet the age, family status, and housing cost requirements of at least one of the three credits.
For the OEPTC specifically, eligibility requires that the individual paid qualifying property tax, rent (at a taxable property), designated accommodation at a university or college residence, or home energy costs on a reserve or in a long-term care facility during 2024. There is also an age and family rule: an applicant must be 18 or older before June 1, 2026, have had a spouse or common-law partner by December 31, 2024, or have been a parent living with a child during the year.
The NOEC applies only to residents of the designated Northern Ontario districts, which include Algoma, Cochrane, Kenora, Manitoulin, Nipissing, Parry Sound, Rainy River, Sudbury, Thunder Bay, and Timiskaming. An applicant must have been a Northern Ontario resident on December 31, 2024, and must have paid qualifying housing costs during the year.
The OSTC does not require a separate application. The CRA determines eligibility automatically using income tax return data. For the 2024, 2023, 2020, and 2025 tax years, the OSTC introduced a seniors’ income threshold rule. If a recipient or their spouse or common-law partner is 64 years of age or older on December 31 of the applicable tax year, the credit may be calculated using a more favourable seniors’ income threshold, potentially increasing the OSTC amount available to older Ontarians.
How OTB Payments Are Structured
The OTB is issued monthly on the 10th of each month from July through June of the following year. For the 2025–26 benefit year, payments began on July 10, 2025 and will conclude on June 10, 2026. If the 10th falls on a weekend or statutory holiday, the payment is issued on the last business day before the 10th.
Recipients whose total annual OTB entitlement is $360 or less automatically received a one-time lump-sum payment in July 2025. Those entitled to more than $360 receive monthly installments. However, individuals who prefer a single annual payment may choose to defer monthly payments and receive their entire entitlement in one deposit in June 2026, by ticking Box 61060 on Form ON-BEN when filing their 2024 return.
It is worth noting that OTB payments can be applied to outstanding debts owed to the CRA or certain other federal agencies before the net balance is disbursed to the recipient. Individuals should review their CRA My Account to confirm the amount actually deposited versus the calculated entitlement.
The Role of the ON-BEN Form
One of the most important practical changes reinforced in the 2025 OTB cycle is the emphasis on correctly completing and submitting Form ON-BEN with the annual tax return. The OSTC component is calculated automatically by the CRA without an application, but the OEPTC and NOEC components require the recipient to actively apply through ON-BEN. Forgetting to attach this form is the most common reason eligible Ontarians miss out on benefit payments.
If the ON-BEN form was not included with the 2024 return, taxpayers can update their return through a T1 Adjustment request in CRA My Account, or by mailing Form T1-ADJ to their tax centre. Late filers whose 2024 return is assessed after June 19, 2025 will still receive their OTB, but first payments may be delayed four to eight weeks after assessment, with retroactive amounts for missed months included in the first installment.
Income Phase-Out Thresholds for the OTB
Unlike a fixed salary cap, the OTB phases out gradually as family income rises above certain thresholds. For the NOEC, single residents begin to see reductions in their credit when adjusted family net income exceeds approximately $49,885. For the OEPTC, income thresholds vary by age and family status. The OSTC does not phase out for most recipients below a moderate income level.
The gradual phase-out design means that many households with moderate incomes still receive partial OTB payments, even if they do not qualify for the maximum amounts. This has been intentionally preserved in the 2025 updates to ensure a broad swath of Ontario households continues to benefit from the program.
Part Three: What You Need to Do
File Your 2024 Tax Return on Time
The single most important action any eligible Canadian or Ontarian can take is to file their 2024 personal income tax return by April 30, 2025. Late filing does not disqualify you from receiving the benefits, but it does delay your payments. For the OTB, filing on time ensures payments begin in July 2025. For the GST/HST Credit, filing by the deadline means your credit notice is issued promptly and quarterly payments begin without interruption.
Keep Your CRA Information Current
Both the GST/HST Credit and the OTB are recalculated when major life changes are reported to the CRA. Changes in marital status, the birth or death of a child, a new address, or updated banking details can all affect payment amounts and delivery. The CRA strongly recommends updating this information in CRA My Account as soon as circumstances change. Failing to report changes can result in either underpayments or overpayments, both of which require resolution and can cause disruptions.
Set Up Direct Deposit
Direct deposit is the fastest and most reliable way to receive benefit payments. Recipients who have direct deposit registered with the CRA typically receive their funds on the scheduled payment date. Those receiving cheques by mail may wait up to 10 business days after the scheduled date. Setting up or updating direct deposit can be done easily through CRA My Account or by calling the CRA at 1-800-959-8281.
Use the CRA Benefits Calculator
The CRA provides an online Child and Family Benefits Calculator at canada.ca that can estimate your GST/HST Credit, OTB entitlements, and other applicable benefits based on your specific income, family size, age, and province of residence. Using this tool before filing gives a clear picture of what to expect and helps ensure that all relevant information has been correctly entered on your tax return.
Finally
The 2025 updates to the GST/HST Credit and Ontario Trillium Benefit represent a meaningful effort by the federal and provincial governments to keep income support in step with the realities of inflation and rising living costs. The 2.7% indexation of the GST/HST Credit and the July 2025 increases to all three OTB components together mean that eligible Canadians and Ontarians are receiving more than at any prior point in the history of these programs.
Looking further ahead, the announced Canada Groceries and Essentials Benefit signals a significant federal commitment to expanding the GST/HST Credit framework through 2031, with both a one-time spring 2026 top-up and a sustained 25% base increase beginning July 2026. For Ontarians, the continued annual inflation adjustment of the OTB ensures ongoing relevance as energy and property costs remain elevated.
Whether you are a single renter in Toronto, a family in Northern Ontario, a newcomer navigating the Canadian tax system for the first time, or a senior on a fixed income, these programs offer meaningful tax-free support. The key to accessing the full benefit is straightforward: file your taxes on time, complete the required forms, and keep your CRA information up to date. The money is available — all that is required is the act of claiming it.