The Canada Revenue Agency (CRA) is set to distribute the October installment of the $698 GST/HST Credit, a quarterly benefit that helps low- and moderate-income Canadians manage the burden of federal sales taxes. The credit is calculated based on the 2024 tax return, and eligibility depends on income, family size, and residency.
$698 CRA GST/HST Credit October 2025
| Key Fact | Detail |
|---|---|
| Maximum annual credit | $698 for couples; $349 for individuals |
| Child supplement | $184 per child under 19 |
| Payment dates | July, October, January, April |
| Eligibility | Based on adjusted family net income, residency, and age |
What Is the GST/HST Credit?
The Goods and Services Tax/Harmonized Sales Tax (GST/HST) Credit is a direct financial transfer to individuals and families with modest incomes. Its purpose is to reduce the regressivity of consumption taxes, which disproportionately affect households with lower earnings.
The benefit year runs from July to the following June, with four payments delivered in July, October, January, and April. The October 2025 payment is the second installment for the 2025–26 cycle.
Historical Context
The GST/HST Credit was introduced in 1990, when Canada implemented the Goods and Services Tax (GST). Recognizing that consumption taxes weigh more heavily on low-income households, the government created the credit to ensure fairness in the tax system.
Over the years, the credit has expanded to include child supplements and adjustments for marital status. It has become a predictable feature of Canada’s social policy, similar in intent to refundable tax credits offered in other developed nations.
Eligibility Criteria For $698 CRA GST/HST Credit October 2025
Residency and Age Requirements
Recipients must be residents of Canada for tax purposes at the time of payment. They must be at least 19 years old, unless they have a spouse, common-law partner, or child.
Income Thresholds
Eligibility depends on adjusted family net income. As income rises above the CRA’s cut-off levels, the credit decreases until it is eliminated. For 2025–26, individuals without children lose eligibility once their adjusted net income exceeds approximately $52,000, while families with children may qualify at higher income levels.
Family and Children Supplements
The maximum amounts are:
- $349 for individuals
- $698 for couples
- $184 per child under 19
The total amount is divided into four quarterly installments.
How Much Will Canadians Receive?
A family of four — two parents and two children — could receive up to:
- $698 (couple base amount)
- $368 (two children, at $184 each)
- Total: $1,066 annually, or $266 per quarter
These amounts shrink as family income rises. The CRA automatically calculates eligibility using tax return data.
Impact on Canadians
According to government data, about 11 million Canadians receive the GST/HST Credit each year, representing billions of dollars in federal transfers. The credit particularly benefits single parents, seniors, and working families struggling with living costs.
The credit’s predictable quarterly structure allows households to plan around it. For many, the October installment provides extra support before winter utility bills increase.
Case Study: A Canadian Family
Consider a family in Winnipeg with two children and a household income of $38,000. They qualify for the full $1,066 annual credit.
This support, while modest, helps cover essentials such as groceries and school supplies. For families balancing multiple expenses, even a few hundred dollars per quarter can make a measurable difference.
Why October 2025 Matters
The October payment is automatic, provided recipients filed a 2024 tax return. Canadians are encouraged to sign up for direct deposit to avoid delays. According to the CRA, most payments are received within a few days, though mailed cheques can take longer.
“Filing a tax return is essential, even if you earned no income,” the CRA said in a recent advisory. “We use that information to determine eligibility for credits and benefits.”
Challenges and Criticisms
While the credit provides relief, experts debate whether it keeps pace with rising costs. Canada’s inflation rate, which spiked during 2022–23, has raised concerns about the adequacy of fixed benefit amounts.
Dr. Lindsay Tedds, an associate professor at the University of Calgary, noted: “Programs like the GST/HST Credit are efficient in design, but without indexing or periodic review, their real value diminishes over time.”
Critics also argue that quarterly payments, while predictable, may be less effective than monthly disbursements. Others highlight gaps in awareness, with some eligible Canadians missing out because they fail to file tax returns.
Comparison With Other Countries
Many advanced economies use refundable tax credits or direct transfers to counter the impact of consumption taxes. For example:
- United Kingdom: Provides targeted support through its “Cost of Living Payments.”
- Australia: Offers energy and utility rebates for low-income households.
- United States: Uses programs like the Earned Income Tax Credit (EITC) to provide cash relief.
Canada’s GST/HST Credit is broadly similar, though its quarterly structure and focus on sales tax relief make it unique.
FAQs About $698 CRA GST/HST Credit October 2025
Do I need to apply for the GST/HST Credit?
No. Eligibility is determined automatically when you file your tax return.
When will the October 2025 payment arrive?
The CRA issues payments on October 5, 2025, or the previous business day.
What if I didn’t receive my payment?
Contact the CRA if payment does not arrive within 10 business days.
What is the income cut-off for eligibility?
Around $52,000 for individuals without children, with higher thresholds for families.
Does the credit affect other benefits?
No. It does not reduce Canada Child Benefit (CCB) or other federal transfers.
Future Outlook
Economists expect calls to index the credit to inflation will intensify if living costs continue to rise. Policymakers may also consider integrating it more closely with other benefits to simplify Canada’s system of tax credits and transfers.
For now, the GST/HST Credit remains a cornerstone of Canada’s approach to balancing consumption taxes with income support.
