As inflation continues to strain Canadian households, the federal government has announced a one-time $250 GST Relief Payment set to roll out in June 2025. This tax-free financial boost, administered by the Canada Revenue Agency (CRA), aims to ease the burden of rising costs for groceries, housing, and utilities, particularly for low- and middle-income Canadians. With approximately 18.7 million households expected to benefit, this payment is part of a broader strategy to support working Canadians facing economic challenges. But who qualifies, when will the money arrive, and how can you ensure you don’t miss out? This 1,500-word article, tailored for a Canadian audience, dives into the eligibility criteria, payment schedule, claiming process, and tips to maximize this relief. Stay informed to make the most of this crucial financial support in 2025.
What Is the $250 GST Relief Payment?
The $250 GST Relief Payment is a one-time, tax-free supplement to the regular Goods and Services Tax/Harmonized Sales Tax (GST/HST) Credit. Announced as part of the Canadian government’s efforts to combat inflation, which reached 4% in early 2025 according to Statistics Canada, this payment targets low- and middle-income households struggling with the cost of essentials. Unlike the quarterly GST/HST Credit, which provides up to $519 annually for singles and $680 for couples (plus $179 per child under 19), this $250 payment is a special bonus designed to offer immediate relief during the summer months, when expenses like childcare and travel often spike.
The payment builds on previous initiatives, such as the $250 Working Canadians Rebate issued in spring 2025 and the GST Holiday from December 14, 2024, to February 15, 2025, which removed GST/HST on essentials like groceries and kids’ clothing. The CRA estimates that this relief will reach 18.7 million Canadians, providing a flat $250 per household, regardless of family size or number of children. For many, this payment offers a chance to cover bills, stock up on necessities, or save for future expenses.
Who Qualifies for the $250 GST Relief Payment?
Eligibility for the $250 GST Relief Payment is tied to the existing GST/HST Credit program, with additional criteria to ensure it reaches working Canadians most in need. Based on CRA guidelines, you may qualify if you meet the following requirements:
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Residency: You must be a Canadian citizen, permanent resident, or hold a valid Canadian visa and be a resident of Canada for tax purposes as of June 1, 2025.
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Age: You must be at least 19 years old by May 31, 2025. If under 19, you qualify if you have a spouse or common-law partner or are a parent living with your child.
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Tax Filing: You must have filed your 2023 income tax return by December 31, 2024, as the CRA uses this to assess eligibility. Filing your 2024 return early in 2025 is also recommended to avoid delays.
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Income Threshold: Your individual net income for 2023 must be $150,000 or less. This includes employment or self-employment income but excludes certain deductions like RRSP contributions.
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Employment Status: You must have been employed or self-employed in 2023, with contributions to the Canada Pension Plan (CPP), Quebec Pension Plan (QPP), Employment Insurance (EI), or Quebec Parental Insurance Plan (QPIP). Retirees without employment income in 2023 are generally ineligible, though those receiving CPP or QPP may qualify if they meet income and employment criteria.
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Other Conditions: You must not be deceased or incarcerated for 90+ days as of April 1, 2025.
Households already receiving the GST/HST Credit are automatically eligible, with no separate application required. For example, a single person earning $40,000 in 2023 or a family of four with a combined income under $150,000 would qualify. Seniors on CPP or QPP may also be eligible if they worked in 2023 and meet the income threshold.
Payment Amount and Structure
The $250 GST Relief Payment is a flat amount, distributed as follows:
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Single Individuals: Receive $250.
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Couples: Receive $250 per household, even if both spouses qualify for GST/HST Credit.
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Families with Children: Receive $250 per household, regardless of the number of children.
This one-time payment is tax-free and separate from the regular GST/HST Credit, which for July 2024–June 2025 provides up to $519 for singles, $680 for couples, and $179 per child annually. The $250 payment does not affect other benefits, such as the Canada Child Benefit (CCB) or Old Age Security (OAS).
When and How Will the Payment Be Distributed?
The CRA has confirmed that the $250 GST Relief Payment is expected to be distributed in mid-June 2025, with likely dates between June 10 and June 15, 2025. The exact date may vary based on individual tax filing status and CRA processing times. Payments will be issued via:
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Direct Deposit: For those enrolled in direct deposit with the CRA, funds will appear in your bank account, labeled as “GST/HST tax credit” or “Canada FPT”. This is the fastest method, typically arriving within 5–10 business days of issuance.
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Mailed Cheque: If you haven’t set up direct deposit, a paper cheque will be mailed to your address on file, which may take 2–3 weeks to arrive.
To ensure timely delivery, update your banking details and address in your CRA My Account portal before May 31, 2025. If you miss the payment by June 30, 2025, contact the CRA at 1-800-387-1193 to verify your eligibility or address issues.
How to Ensure You Receive the Payment
Most eligible Canadians will receive the $250 GST Relief Payment automatically, as the CRA uses data from your 2023 tax return to determine eligibility. However, to avoid delays or disqualification, follow these steps:
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File Your Taxes: Submit your 2023 tax return by December 31, 2024, and your 2024 return by April 30, 2025, even if you had no income. Late filings can delay or prevent payment.
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Update CRA My Account: Log into www.canada.ca/en/revenue-agency.html and verify your address, banking details, marital status, and dependents. Incorrect information can cause delays or redirect payments.
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Check Eligibility: Use the CRA’s Child and Family Benefits Calculator to estimate your GST/HST Credit and confirm eligibility for the $250 payment.
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Monitor Notifications: Check your CRA My Account or physical mailbox for payment confirmations or notices about eligibility issues.
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Avoid Scams: Beware of emails, texts, or calls claiming to be from the CRA requesting personal information. Only trust canada.ca or direct CRA communications. Report suspicious activity to the Canadian Anti-Fraud Centre.
Newcomers to Canada, including international students or temporary residents, may qualify after 18 months of residency if they file taxes and meet income criteria. Use Form RC151 (no children) or Form RC66 (with children) to apply for GST/HST Credit eligibility.
Why Is This Payment Being Offered?
The $250 GST Relief Payment responds to persistent inflation, which has driven up costs for essentials like food (5.2% increase), rent (8.1% increase), and utilities (3.9% increase) in 2025, per Statistics Canada. The payment complements other 2025 relief measures, including:
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GST/HST Credit Increase: A 2.7% boost starting July 2025, raising annual payments to $349 for singles, $698for couples, and $184 per child.
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GST Holiday: From December 14, 2024, to February 15, 2025, GST/HST was suspended on groceries, kids’ clothing, and other essentials, saving families up to $260 on $2,000 in qualifying purchases.
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Working Canadians Rebate: A $250 payment issued in spring 2025 to 18.7 million working Canadians with incomes under $150,000.
These initiatives aim to ease financial strain, particularly for low-income households, during high-spending periods like summer.
Other Financial Support in June 2025
Beyond the $250 GST Relief Payment, Canadians may access additional benefits in June 2025:
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Canada Child Benefit (CCB): Paid on June 20, 2025, offering up to $7,787 annually per child under 6 and $6,570per child aged 6–17.
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Ontario Trillium Benefit (OTB): Paid on June 10, 2025, providing up to $1,421 for energy, property tax, and sales tax credits in Ontario.
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CPP and OAS: Paid on June 26, 2025, supporting seniors with monthly pensions.
Check your eligibility for these programs via CRA My Account or the Benefits Finder at canada.ca.
Tips for Using the Payment Wisely
Financial advisors suggest allocating the $250 payment strategically:
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Pay Down Debt: Use it to reduce high-interest credit card balances, as Canadian household debt averaged $1.85 for every $1 of income in 2025.
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Build Savings: Add to an emergency fund or Tax-Free Savings Account (TFSA) to prepare for unexpected costs.
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Cover Essentials: Prioritize groceries, utilities, or childcare, especially during summer school breaks.
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Invest in Education: Save for back-to-school expenses or RESP contributions for children’s future.
Addressing Common Concerns
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What if I don’t receive the payment? Wait 10 business days after June 15, 2025, then check CRA My Accountor call 1-800-387-1193.
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Is it a scam? Social media rumors about unconfirmed payments are common. Verify details only through canada.ca. A June 2025 X post questioned the payment’s legitimacy, but CRA announcements confirm its validity.
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Will it affect other benefits? No, the payment is tax-free and does not impact CCB, OAS, or other credits.
Final Thoughts
The $250 GST Relief Payment in June 2025 is a vital lifeline for low- and middle-income Canadians grappling with inflation. With 18.7 million households set to benefit, this tax-free boost, expected between June 10–15, 2025, offers relief for summer expenses. By filing your 2023 and 2024 taxes, updating your CRA My Account, and staying vigilant against scams, you can ensure timely receipt of this payment. Combined with other supports like the GST/HST Credit increase and CCB, this initiative reflects the government’s commitment to easing financial pressures. Visit www.canada.ca/en/revenue-agency.html for updates, and use this $250 wisely to strengthen your financial footing in 2025.