Definition
The GST/HST credit is a quarterly tax-free payment from the Canada Revenue Agency to low-income individuals and families to offset the GST or HST they pay on consumer purchases. It is calculated automatically from the prior year’s T1 personal tax return and paid in July, October, January, and April. The amount depends on family income, marital status, and the number of children under 19. The credit is unique to Canada among our target jurisdictions.
What the GST/HST credit means in practice
For a bookkeeper, the GST/HST credit is not a business-bookkeeping item: it is a personal tax credit paid directly to individuals. It enters business work only when a bookkeeper also handles personal tax for a client (which is common for owner-operated SMBs in Canada). The credit is not income for tax purposes and does not appear anywhere on a business return.
For an individual Canadian client, the credit arrives automatically. Anyone who files a T1 personal return is screened automatically against the income thresholds; eligible filers receive the credit without applying. The four quarterly payments are tax-free (no T-slip is issued) and do not affect any other federal benefit.
A practical example: a single Canadian client with net income of CAD 32,000 in 2025 and no children files their 2025 T1 by 30 April 2026. The CRA calculates them as eligible for the full GST/HST credit (income below the phase-out threshold). They receive CAD 129.75 on 3 July 2026, the same amount on 5 October 2026, 5 January 2027, and 5 April 2027, totalling CAD 519 over the year.
How the GST/HST credit works by country
Canada
Paid quarterly on the 5th of July, October, January, and April (or the prior business day when the 5th falls on a weekend or holiday). 2026 maximum amounts: up to CAD 519 for a single adult, CAD 680 for a couple, plus CAD 179 per child under 19. The credit phases out above net family income of roughly CAD 45,521 for single individuals and rises with the number of children for families. Determined automatically from the T1 personal tax return; no application required.
Provincial enhancements exist in several provinces. Ontario operates the Ontario Sales Tax Credit, which is paid alongside the federal credit. New Brunswick, Nova Scotia, and Newfoundland and Labrador have their own provincial top-ups.
United Kingdom
The United Kingdom does not have a GST/HST credit. The closest equivalent income-tested support is Universal Credit, administered by the Department for Work and Pensions, plus periodic cost-of-living payments paid from the household support fund. Neither is specifically VAT-linked.
Australia
Australia does not have a GST credit for individuals. The Energy Bill Relief Fund and Family Tax Benefit are the closest equivalents but they are not linked to GST paid. AU’s family payments are administered by Services Australia.
New Zealand
New Zealand does not have a GST credit. The Working for Families tax credits and the In-Work tax credit are the closest income-tested supports for families with children, administered by Inland Revenue.
Singapore
Singapore does not have a “GST credit” specifically but issues the GST Voucher administered by the Ministry of Finance to offset GST for lower-income Singaporeans. See the GST Voucher entry for details on the cash, U-Save, MediSave, and one-off components.
Related terms
The GST/HST credit sits adjacent to but distinct from business GST mechanics:
- GST is the federal indirect tax this credit partially offsets at the consumer level.
- HST is the harmonised version in five Canadian provinces.
- HST netfile is the CRA service for business GST/HST returns (distinct from this personal credit).
- VAT is the UK equivalent indirect tax; the UK has no comparable credit.
- The Singapore equivalent is the GST Voucher (separate glossary entry).
See also
For the Canadian business GST and HST regime, see the CA GST and HST guide.
FAQ
See the answered questions above for eligibility, the distinction from input tax credits, and 2026 payment dates.