As Canadians prepare for the year ahead, many low- and modest-income households are welcoming news about the Canada Revenue Agency’s (CRA) GST/HST credit. A quarterly tax-free payment of up to $698 has been confirmed, with direct deposits expected on January 12, 2026 for eligible recipients.
This quarterly benefit can provide meaningful financial support at a time when winter expenses, rent, utilities and everyday costs remain high. The GST/HST credit is a key component of Canada’s tax-free benefit system, designed to help individuals and families manage consumption taxes throughout the year.
What Is the GST/HST Credit?
The GST/HST credit is a tax-free quarterly payment intended to help offset some or all of the Goods and Services Tax (GST) and Harmonized Sales Tax (HST) paid by Canadians with low to modest incomes.
Unlike some government supports that require separate applications, this benefit is automatically calculated when you file your income tax return. Your eligibility and payment amount depend on information submitted on your tax return, especially your adjusted family net income and household situation.
Why the January 12, 2026 Payment Matters
The January GST/HST credit payment is often one of the most anticipated of the year: it arrives shortly after the holidays and can help with managing early-year expenses that typically strain household budgets.
For many families, this payment comes just in time to assist with rent, groceries and utility bills, offering a tax-free boost to monthly cash flow at a critical moment.
Up to $698: How the Amount Is Determined
The total GST/HST credit amount varies based on income level and household composition. For the 2025–2026 benefit cycle:
- A couple or family may receive up to $698 per quarter.
- Individuals and families with lower incomes may receive smaller amounts.
- Additional credits may apply for children under 19.
The $698 figure represents the maximum quarterly payment, not a guaranteed amount for every recipient. It reflects the upper end of the benefit range for families with combined incomes within the eligibility thresholds.
Who Is Eligible for the GST/HST Credit in 2026?
To qualify for the January 2026 GST/HST credit:
- You must be a resident of Canada for tax purposes at the beginning of the payment month.
- You must have filed your 2024 income tax return.
- You must be 19 years or older, or meet criteria such as having a spouse, common-law partner, or being a parent of a child you live with.
- Your adjusted family net income must fall within the eligible range for the credit.
As income rises, the credit amount gradually decreases until it phases out entirely above the set thresholds.
Direct Deposit vs. Cheque Payments
Most eligible Canadians will receive the GST/HST credit through direct deposit on January 12, 2026, as long as their banking information is current with the CRA.
If you are not enrolled in direct deposit, the CRA will issue a paper cheque, which may arrive later depending on mailing times. Direct deposit is recommended because it is faster, more secure and less likely to be delayed.
How to Ensure You Receive the Payment
To avoid missing your GST/HST credit:
- File your 2024 income tax return on time, even if you had little or no income.
- Keep your personal information up to date, including marital status, number of dependents and address.
- Verify your direct deposit details with the CRA so payments can be made smoothly.
Keeping these details updated helps ensure that the CRA can calculate and deposit your credit without delays.
Final Thoughts
The CRA $698 GST/HST credit confirmed for January 12, 2026 offers a significant tax-free benefit to eligible Canadians. While not everyone will receive the maximum payment, millions of individuals and families are expected to benefit from this quarterly support.
Being prepared—by filing tax returns, updating personal information and enrolling in direct deposit—will help you receive this important credit right when you need it. As January approaches, staying informed remains the best way to make sure this financial support lands in your account smoothly and on time.
