Lately, there have been rumors circulating about a possible increase in Canada’s Goods and Services Tax (GST) in 2025. Many Canadians are wondering whether they’ll have to pay more for everyday purchases. So, is it true? The short answer: No, the federal government has not announced any plans to raise the GST this year.
However, there have been some important tax-related changes that you should know about, including temporary GST relief measures and adjustments at the provincial level.
Temporary GST/HST Relief: What Was It About?
To help Canadians deal with rising costs, the government introduced a temporary GST/HST exemption on certain items. From December 14, 2024, to February 15, 2025, Canadians didn’t have to pay GST/HST on a variety of essential goods, including:
- Groceries and beverages
- Children’s clothing and footwear
- Diapers and child booster seats
- Christmas trees
- Print books and newspapers
- Toys and games
This tax break was meant to offer short-term financial relief, especially during the holiday season and into the new year.
Nova Scotia’s HST Cut – What It Means for Residents
While the federal GST remains the same, some provinces have made their own changes. One major update comes from Nova Scotia, which is reducing its portion of the Harmonized Sales Tax (HST).
Starting April 1, 2025, Nova Scotia’s HST rate will drop from 15% to 14%, thanks to a cut in the provincial portion from 10% to 9%. This means residents of the province will see slight savings on purchases.
GST/HST Credit: How Much Will You Get in 2025?
For Canadians with low to modest incomes, the GST/HST credit continues to provide extra financial support. Here’s how much eligible recipients will receive from July 2024 to June 2025:
- $519 per year for single individuals
- $680 per year for married or common-law couples
- $179 per year for each child under 19
These payments are sent out every three months and are automatically determined based on your income tax return. If you qualify, you don’t need to apply—just file your taxes on time.
Final Thoughts: No GST Increase, But Stay Informed
As of now, there’s no confirmed GST increase in Canada for 2025. The government has instead focused on providing temporary tax breaks and continuing the GST/HST credit to help eligible Canadians.
That being said, tax policies can change, so it’s always a good idea to stay updated with official announcements from the Canada Revenue Agency (CRA) and the federal government.
Would you like updates on future tax changes? Keep following the latest news to make sure you never miss important financial updates!
