Updated on 29 July 2024

HST, or harmonized sales tax, is a tax used in some provinces in Canada as a combination of the federal goods and services tax (GST) and provincial sales tax (PST).

There are five provinces that have adopted HST: Nova Scotia, Newfoundland and Labrador, New Brunswick, Prince Edward Island, and Ontario. British Columbia implemented HST in 2010, but after a referendum, it reverted back to GST/PST in 2013.

The HST tax credit is a tax-free quarterly payment made by the CRA (Canada Revenue Agency) to help individuals and families with low or modest income offset all or some of the HST they pay throughout the year in Canada. It may also include payments from other provincial or territorial programs.

The HST tax credit can be significant for low income families and individuals. It’s imperative to ensure you meet all the HST eligibility requirements and know important dates and deadlines so you can take advantage of this tax credit.

HST Credit Eligibility

Because most Canadians pay HST on goods and services, it follows that the qualification requirements to receive the HST credit are very wide. However, because this program is to benefit low or modest income individuals and families, there is an HST credit income limit.

You are eligible for the HST tax credit if you are a resident of Canada for income tax purposes in the month before and at the beginning of the month in which the CRA makes their quarterly payments, and one of the following also applies:

• You are at least 19 years old
• You have (or had) a spouse or common-law partner
• You are (or were) a parent and live (or lived) with your child

That’s it! You do not need to have any earnings to qualify.

When you file your taxes, you are automatically considered for the HST tax credit. The amount you receive in your HST credit is dependent upon your net income, marital status, and children in the given tax year. To see if you meet the income threshold to receive the HST credit, visit the Government of Canada Family Income Level.

If an individual fits this HST credit eligibility, they will receive a notice of determination. In the case of eligible couples (spouses or common-law), the notice of determination and credit is simply paid to the spouse whose tax return is assessed first.

Get the HST Credit Canada

When you file your income taxes in Canada and meet the above qualified criteria, you are automatically considered for the HST credit. You will receive the notice of determination and payments via direct deposit or by mailed cheque quarterly, depending on your preferences with the CRA. After you receive the notice of determination, you do not have to do anything else!

If you are a newcomer to Canada or an international student, you may also be eligible to get the HST credit. To apply, follow these steps:

• Apply for a Social Insurance Number (SIN)
• Fill out the appropriate CRA form depending on if you have children or not
• If you do not have children under the age of 19, fill out application form RC151, GST / HST Credit Application for Individuals Who Become Residents of Canada
• If you do have children, fill out RC66, Canada Child Benefits Application
• Mail the completed form to your tax centre.

You may also claim the HST credit for a child living with you if they meet the criteria.

All of the following must apply at the beginning of the month in which the CRA makes payment. The child:

• Is your child, or is dependent on your or your spouse for support
• Is under 19 years of age
• Has never had a spouse or common-law partner
• Has never been a parent to a child they live with
• Lives with you

A child is automatically registered for the HST credit if a parent or guardian gave consent on their provincial or territorial birth registration form, or when a parent or guardian applies for the Canada child benefit.

A change in an individual’s situation, such as divorce, marriage, death, or childbirth, may cause the CRA to recalculate the HST credit.

Determining your HST credit eligibility and how to get the HST credit in your unique situation can be complex. Accountor CPA can help you navigate the forms and requirements.

Contact us today for a free consultation for your HST return and HST credit!

HST Credit Dates

The HST credit is paid by the CRA quarterly starting in July. It is paid on the fifth day of the month (or before) in July, October, January, and April for the previous tax year.

For example, someone who filed income tax for 2022 will receive their first HST credit amount in July 2023 and their latest in April 2024 for the 2022 tax year.

It is also important to note that if your HST credit calculated in July is less than $50 per quarter, the CRA will pay for the total payment period in July in one lump sum.

Provincial HST Credits and Programs

There are also a number of provincial programs that are administered by the CRA in conjunction with the HST credit in Canada.

The following are the programs available to those who claim the HST credit in provinces where HST has been adopted.

HST Credit Calculator

The HST credit amount an individual is eligible for depends on a number of factors, including their marital status, children in their care, and net income. There are HST credit income limits imposed by the CRA depending on an individual’s unique situation.

The Canada Revenue Agency provides an HST credit calculator to help you estimate your HST credit amount for a given tax year.

Access the HST credit calculator here. It is always recommended to consult with a tax accountant for more detailed information for your situation and a more accurate estimate.

So What are HST Input Tax Credits?

Input tax credits (ITCs) are credits that some Canadian businesses can claim for sales taxes paid on items purchased to produce goods and services.

If your business registered for an HST number, you are charging and remitting HST to the government on your goods and services. You can claim HST input tax credits for the amount of HST you paid on eligible items for your business to offset some of the HST you are obligated to remit.

HST input tax credits are a business program, and not related to the HST credit for individuals and families.

FAQ

Get the answers to your questions about the HST tax credit.

What is the HST credit, and who is eligible for it?

The HST credit is a tax-free quarterly payment that helps offset the cost of GST or HST for low- and modest-income families. Eligibility is based on your family’s net income and the number of children under 19.

What are the HST credit payment dates?

The time period is quarterly beginning in July for the previous tax year, and then in October, January, and April.

Is the HST credit based on income?

Yes, your net income as an individual or couple, as well as the number of dependents and their ages, will determine how much you will receive in your HST credit.

How do I estimate my HST credit?

The CRA provides an HST credit calculator to give you an estimate of your HST credit.

What is the Ontario HST credit?

The HST credit is a federal program. Individuals living in Ontario may also be eligible for the Ontario sales tax credit and Ontario Trillium benefit, which are paid by the CRA combined with the federal HST credit.

I need help applying for the HST credit. What can I do?

Contact the tax experts at Accountor CPA. Our team of dedicated accountants will ensure you have applied for all the credits for which you are eligible, no matter your unique situation.

How do I apply for the HST credit?

You don’t need to apply separately. When you file your tax return, the CRA will determine if you’re eligible based on your income and family status.

What is the payment schedule for the HST credit?

Payments are made quarterly, in July, October, January, and April.

How much can I expect to receive from the HST credit?

The amount varies based on income, marital status, and the number of eligible children. The CRA provides a detailed breakdown in your Notice of Assessment.

Can non-residents of Canada receive the HST credit?

No, only Canadian residents for tax purposes are eligible for the HST credit.

How do changes in my family situation affect my HST credit?

Changes such as marriage, divorce, or the birth of a child should be reported to the CRA, as they can impact the amount you receive.

What should I do if I haven’t received my HST credit payment?

Check your CRA My Account for payment details. If the payment is missing, contact the CRA directly to investigate the issue.

Contact us today for a free consultation for your HST return filing and HST credit.