How to Apply for the GST/HST Credit as a Newcomer to Canada

What Is the GST/HST Credit?

The Goods and Services Tax / Harmonized Sales Tax (GST/HST) credit is a tax-free payment from the Government of Canada. It is designed to help individuals and families with low and modest incomes offset the sales tax they pay on everyday purchases. Almost everything you buy in Canada, from groceries to clothing to electronics, includes GST (5%) or HST (13% to 15%, depending on the province). The GST/HST credit gives some of that money back to people who need it most.

The credit is administered by the Canada Revenue Agency (CRA) and is paid out four times a year. For most Canadian residents, the GST/HST credit is calculated automatically when you file your annual income tax return. However, as a newcomer who has just arrived in Canada, you have a special process to follow because you may not have filed a Canadian tax return yet.

Who Qualifies for the GST/HST Credit?

To qualify for the GST/HST credit, you must be a Canadian resident for income tax purposes and at least 19 years old. If you are under 19, you may still qualify if you have a spouse or common-law partner, or if you are a parent living with your child. You must also have a valid Social Insurance Number (SIN).

Income Thresholds

The GST/HST credit is income-tested, which means the amount you receive depends on your adjusted family net income. For the 2024-2025 benefit year, single individuals with no children start to see their credit reduced when their net income exceeds approximately $42,335. Families with children have higher thresholds. If your income is above the threshold, your credit is gradually reduced. Very high-income individuals and families receive no credit at all.

As a newcomer, your Canadian income in your first year is likely low or zero, which means you will probably qualify for the full amount.

How Much Can You Receive?

The GST/HST credit amounts are adjusted each year for inflation. For the 2024-2025 benefit year (payments from July 2024 to June 2025), the maximum annual amounts are:

• $496 for a single person with no children
• $650 for a married or common-law couple
• $171 for each child under 19

These amounts are divided into four quarterly payments. For example, a single person receiving the full $496 would get approximately $124 each quarter. Remember that these amounts may be different for the current benefit year, so check the CRA GST/HST credit page for the most up-to-date figures.

How to Apply as a Newcomer: Form RC151

Canadian residents who have been filing taxes normally do not need to apply for the GST/HST credit. It is calculated automatically from their tax return. However, as a newcomer, you need to apply using form RC151, called "GST/HST Credit Application for Individuals Who Become Residents of Canada."

Step 1: Get the Form

You can download form RC151 from the CRA forms page. The form is available in both English and French. You can also pick up a copy at any CRA tax services office or Service Canada centre.

Step 2: Fill Out the Form

The form asks for your personal information, including your name, date of birth, SIN, marital status, address in Canada, and the date you became a resident of Canada. If you have a spouse or common-law partner, you will also need their information. You will need to report your world income for the year before you came to Canada, converted to Canadian dollars.

Step 3: Submit the Form

Mail the completed form to your nearest CRA tax centre. The mailing addresses are listed on the form itself. You should submit the form as soon as possible after you arrive in Canada and receive your SIN. Processing can take up to 8 weeks, and the sooner you apply, the sooner you will start receiving payments.

When Will You Receive Your Payments?

GST/HST credit payments are issued on the 5th day of January, April, July, and October. If the 5th falls on a weekend or holiday, the payment is issued on the last business day before the 5th. If your total annual credit is less than $50, the CRA will send it as a single lump sum in July rather than splitting it into quarterly payments.

How Payments Are Delivered

The CRA strongly encourages direct deposit. You can set up direct deposit through your CRA My Account or by submitting a direct deposit enrollment form with your bank details. If you do not set up direct deposit, the CRA will mail you a cheque, which takes longer to arrive and has a risk of being lost in the mail.

After Your First Year: Filing Taxes

After your first year in Canada, you will need to file a Canadian income tax return even if you earned little or no income. Filing your tax return is how the CRA determines your eligibility for the GST/HST credit (and many other benefits like the Canada Child Benefit) for the following year. If you do not file a tax return, your GST/HST credit payments will stop.

Other Benefits You May Qualify For

When you apply for the GST/HST credit, the CRA may also assess your eligibility for other benefits. Depending on your situation, you may qualify for:

• The Canada Child Benefit (CCB) if you have children under 18
• Provincial and territorial credits (such as the Ontario Trillium Benefit or the Alberta Climate Leadership Adjustment)
• The Canada Workers Benefit if you have low employment income

Helpful Resources

• CRA: GST/HST Credit
• Form RC151
• Guide to Your First Weeks in Canada
• How to Open a Bank Account as a Newcomer
• Applying for EI Benefits in Canada
• PR Card Renewal Guide
• How to Apply for Canadian Citizenship

WelcomeAide helps newcomers access the benefits and support they deserve. Use our AI Newcomer Navigator for help with taxes, benefits, and settling in. Learn about our mission, explore our programs, or browse more newcomer guides on our blog.