GST/HST Credit & Rebate Guide for Newcomers in 2026

If you've recently arrived in Canada, one of the first financial benefits you should know about is the Goods and Services Tax / Harmonized Sales Tax (GST/HST) credit. This tax-free quarterly payment is designed to help individuals and families with low to modest incomes offset the GST or HST they pay on everyday purchases. For newcomers who are still settling in and managing tight budgets, this credit can provide meaningful financial relief — often hundreds of dollars per year that arrive automatically in your bank account.

What Is the GST/HST Credit?

The GST/HST credit is a non-taxable quarterly payment administered by the Canada Revenue Agency (CRA). It exists to help offset the cost of the Goods and Services Tax (GST) — a 5% federal consumption tax applied to most goods and services purchased in Canada — or the Harmonized Sales Tax (HST), which combines the GST with a provincial sales tax in participating provinces. The credit is income-tested, meaning the amount you receive depends on your family's net income, your marital status, and the number of children you have.

Unlike many other benefits, you do not need to be a Canadian citizen to receive the GST/HST credit. Permanent residents, protected persons, and certain temporary residents who meet the residency requirements are all eligible. This makes it one of the most accessible financial benefits for newcomers to Canada.

According to the CRA's official GST/HST credit page, for the July 2025 to June 2026 benefit year, the maximum annual GST/HST credit amounts are approximately $519 for a single individual and $680 for a married or common-law couple, plus $179 for each child under 19. These amounts are adjusted annually for inflation, so check the CRA website for the most current figures.

Who Qualifies for the GST/HST Credit?

To be eligible for the GST/HST credit, you must meet all of the following conditions at the beginning of the month in which the CRA makes a payment:

• Age: You must be at least 19 years old. However, if you are under 19, you may still qualify if you have (or previously had) a spouse or common-law partner, or if you are a parent who lives with your child.
• Residency: You must be a resident of Canada for income tax purposes. As a newcomer, your residency for tax purposes typically starts on the date you arrive in Canada with the intent to establish permanent ties.
• Status: You must be a Canadian citizen, a permanent resident, a protected person (refugee), or a temporary resident who has lived in Canada for at least 18 consecutive months and has a valid permit in the 19th month. You or your spouse must also have filed a tax return.

Importantly, you must file an income tax return to be assessed for the GST/HST credit, even if you had no income during the tax year. This is one of the most common mistakes newcomers make — assuming that because they earned little or no Canadian income, they don't need to file. Filing your return is the trigger that allows the CRA to calculate and issue your credit. For a detailed walkthrough on applying, see our step-by-step guide to claiming the GST/HST credit.

How Newcomers Apply for the GST/HST Credit

There are two main pathways for newcomers to apply for the GST/HST credit, depending on when you arrived in Canada and whether you've already filed a tax return.

Option 1: File Your First Canadian Tax Return

The most common way to apply is simply to file your income tax return for the year you arrived. When you complete your T1 General tax return, you will encounter a section asking whether you want to apply for the GST/HST credit. Check "yes" in that box, and the CRA will automatically assess your eligibility based on the income information in your return. Our T1 General tax return guide for newcomers walks you through this process in detail.

If you arrived in Canada partway through the tax year, you only report your world income earned from the date you became a Canadian resident to December 31 of that year. The CRA will prorate your GST/HST credit based on the number of months you were a resident.

Option 2: Use Form RC151 (Before Filing Your First Return)

If you arrive in Canada early in the year and don't want to wait until tax-filing season to start receiving the credit, you can submit Form RC151, GST/HST Credit Application for Individuals Who Become Residents of Canada. This form is specifically designed for newcomers. You can submit it as soon as you become a Canadian resident, and the CRA will begin issuing payments without waiting for your first tax return. You can find this form on the CRA's Form RC151 page.

To complete Form RC151, you will need your Social Insurance Number (SIN), your date of entry into Canada, your marital status, information about your spouse (if applicable), the number and ages of your children, and an estimate of your world income for the previous year (converted to Canadian dollars).

See also: How to Get Your SIN Number in Canada

GST/HST Credit Payment Schedule

The GST/HST credit is paid in four quarterly installments. The payment dates for the July 2025 to June 2026 benefit year are:

1. July 4, 2025
2. October 3, 2025
3. January 5, 2026
4. April 3, 2026

If your total annual credit is $50 or less, the CRA will issue it as a single lump-sum payment in July rather than splitting it into quarterly installments. Payments are typically deposited via direct deposit if you've enrolled through CRA My Account. Otherwise, a cheque is mailed to your address on file. Setting up CRA direct deposit is strongly recommended to avoid delays, especially if you move frequently during your settlement period.

If you're new to Canadian banking and need help understanding account options, our banking guide for newcomers covers everything from opening your first account to setting up direct deposit.

How Much Will You Receive?

The amount of your GST/HST credit depends on several factors:

• Your adjusted family net income from the previous tax year
• Your marital status (single, married, or common-law)
• The number of eligible children under 19 in your care

The credit is reduced (clawed back) once your family net income exceeds a certain threshold. For the 2025-2026 benefit year, the reduction begins at a net income of approximately $44,000 for singles and $52,000 for families. The reduction rate is 5% of the amount by which your income exceeds the threshold. This means that for every dollar you earn above the threshold, your credit decreases by 5 cents.

For example, a single newcomer who arrived in Canada in June 2025 and earned $20,000 in Canadian income for the rest of that year would likely receive the full maximum credit, prorated for the months of residency. A family of four with a combined income of $35,000 would also receive the full credit plus the per-child supplements.

Calculation Example

Let's say you are a single newcomer who arrived on January 15, 2025, and your total Canadian income for 2025 was $28,000. Since your income is below the reduction threshold, you would receive the full annual credit of approximately $519. Divided into four quarterly payments, that's roughly $130 per quarter. These payments would begin in July 2026 (for the July 2026-June 2027 benefit year) after you file your 2025 tax return.

If you submitted Form RC151 shortly after arrival, you may have already started receiving prorated payments for the current benefit year based on your estimated world income.

Related Provincial and Territorial Credits

In addition to the federal GST/HST credit, many provinces and territories offer their own sales tax credits or low-income supplements that are paid alongside the GST/HST credit. These include:

• Ontario Trillium Benefit (OTB): Combines the Ontario Sales Tax Credit, Ontario Energy and Property Tax Credit, and Northern Ontario Energy Credit into a single monthly payment.
• British Columbia Climate Action Tax Credit: A quarterly payment to help offset the carbon tax paid by lower-income residents.
• Alberta Climate Action Incentive Payment: A quarterly benefit for residents of Alberta.
• Saskatchewan Low-Income Tax Credit: A quarterly payment for lower-income Saskatchewan residents.
• Nova Scotia Affordable Living Tax Credit: A quarterly benefit for lower-income residents of Nova Scotia.

In most cases, you are automatically assessed for these provincial credits when you file your federal income tax return and check the box for the GST/HST credit. No separate application is required. The CRA acts as the administrator and distributes both the federal and provincial amounts together. For more information on provincial benefits, visit the CRA's provincial and territorial programs page.

Common Mistakes Newcomers Make

Based on the experiences of thousands of newcomers, here are the most frequent errors to avoid when applying for and receiving the GST/HST credit:

1. Not Filing a Tax Return

This is the single biggest mistake. Even if you had zero income in Canada during your first year, you must file a tax return to be assessed for the GST/HST credit and other benefits like the Canada Child Benefit (CCB). Filing is free and can be done using CRA-approved NETFILE software. Many approved options are free for simple returns.

2. Forgetting to Report a Change in Marital Status

If you get married, begin living with a common-law partner, separate, or divorce, you must notify the CRA. Your marital status directly affects your credit calculation. Failing to update it can result in overpayments that you'll need to repay, or underpayments that shortchange you.

3. Not Updating Your Address

If you move — which many newcomers do multiple times during their first year — make sure you update your address with the CRA through My Account or by calling them. If your cheque is mailed to an old address, it can take months to sort out the issue.

4. Confusing the GST/HST Credit with the GST/HST Rebate

The GST/HST credit is a quarterly payment for individuals and families. The GST/HST rebate (or New Housing Rebate) is a separate program that allows you to recover some of the GST/HST paid on a newly built or substantially renovated home. These are completely different programs with different application processes.

5. Not Reporting World Income

As a newcomer, you must report your world income — income earned from all countries — for the period before you became a Canadian resident. This information is used to calculate your benefit entitlements. Omitting it can delay your assessment or lead to incorrect payments. Review the income-reporting sections of your tax return carefully and consult a tax professional if you have questions about foreign income conversion.

GST/HST Credit and Other Benefits

The GST/HST credit is just one of several income-tested benefits available to newcomers. Once you file your tax return and are assessed for the GST/HST credit, you may also be eligible for:

• Canada Child Benefit (CCB): A monthly tax-free payment for families with children under 18. The maximum is over $7,700 per child under 6 and over $6,500 per child aged 6-17.
• Canada Workers Benefit (CWB): A refundable tax credit for low-income workers, providing up to $1,518 for single individuals and $2,616 for families.
• Provincial benefits: Various credits and supplements depending on your province of residence.

All of these benefits are calculated based on the information in your tax return, which is why filing — even with zero income — is so critical. To explore the full range of benefits you may qualify for, check our benefits finder tool.

How to Check Your GST/HST Credit Status

Once you've applied, you can check the status of your GST/HST credit through several methods:

• CRA My Account: Log in to view your payment amounts, dates, and any notices. You can also see your benefit statement and make changes to your personal information.
• CRA mobile app (MyCRA): Available for iOS and Android, this app provides a quick overview of your benefit payments and refund status.
• Automated phone line: Call 1-800-959-1953 to access the automated Benefits enquiries line. You'll need your SIN and date of birth.

If you believe your credit amount is incorrect, you can request a review by contacting the CRA or by filing an adjustment to your tax return through My Account.

Frequently Asked Questions

Can temporary residents receive the GST/HST credit?

Yes, but only if you have lived in Canada for at least 18 consecutive months and have a valid permit in the 19th month. International students on study permits who meet this requirement can apply.

See also: Canada Student Visa Guide

Do I need to reapply every year?

No. Once you've been assessed, the CRA automatically reassesses your eligibility each year when you file your income tax return. You only need to apply once — either through your first tax return or via Form RC151.

What happens if I leave Canada?

If you leave Canada and are no longer a resident for tax purposes, you are no longer eligible for the GST/HST credit. You must notify the CRA of your departure. Any payments received after you become a non-resident may need to be repaid.

Is the GST/HST credit taxable?

No. The GST/HST credit is a tax-free payment. You do not need to report it as income on your tax return, and it does not affect your eligibility for other income-tested benefits.

Can both spouses receive the credit?

No. Only one spouse or common-law partner can receive the GST/HST credit for the family. The CRA will typically issue the payment to the person whose return is assessed first, or you can indicate a preference.

Key Takeaways for Newcomers

The GST/HST credit is one of the simplest and most accessible financial benefits for newcomers to Canada. To make sure you receive it, remember these essential steps:

1. Get your SIN as soon as possible after arrival.
2. File your income tax return for every year you are a resident, even with zero income.
3. Check the box on your return to apply for the GST/HST credit.
4. Consider filing Form RC151 if you arrive early in the year and want to start receiving payments sooner.
5. Set up direct deposit through CRA My Account for faster, more reliable payments.
6. Keep your information updated — especially your address, marital status, and number of dependents.

By taking these simple steps, you can ensure you receive every dollar you're entitled to. The GST/HST credit may not be a life-changing amount on its own, but combined with other benefits like the Canada Child Benefit and provincial credits, it forms part of a meaningful financial support system designed to help you succeed in your new home.