The Canada GST 2025 update is here, and while many Canadians were bracing for a federal goods and services tax hike, the good news is — it’s not happening. Instead, we’ve got some important changes that’ll affect your day-to-day purchases, tax credits, and maybe even your shot at buying a new home.
Canada GST 2025 Update
| Aspect | Details |
|---|---|
| Federal GST Rate | Stays at 5% – no increase announced for 2025 |
| Nova Scotia HST | Drops to 14% effective April 1, 2025 |
| GST/HST Credit | Increases ~2.7% starting July 4, 2025 – adjusts with 2024 CPI |
| First-Time Home Buyer Rebate | Up to $50,000 GST rebate for qualifying new home purchases |
| GST Exemption on Rentals | 100% GST waiver on new long-term rental builds through 2030 (Bill C-56) |
| CRA GST Credit Info | Click here for eligibility and payment dates |
The Canada GST 2025 update might not bring dramatic headlines, but it delivers practical, money-saving changes. Whether you’re a first-time home buyer, a landlord, or someone managing a tight budget, these updates are built to ease pressure — not pile it on.
From no federal tax hike to generous rebates and credits, the government’s clearly aiming to strike a balance between inflation relief and housing affordability. Stay tuned to Canada.ca and CRA updates to make the most of these benefits.
Understanding Canada’s GST in 2025
If you’ve ever paid for groceries, filled up your gas tank, or grabbed a new phone, you’ve likely paid GST – the Goods and Services Tax. It’s been sitting at 5% federally since 2008. And while many folks were buzzing about a potential hike this year, Finance Canada has officially confirmed no increase for 2025. That’s a win for your wallet.
Now, if you’re in Nova Scotia, here’s a small surprise: the Harmonized Sales Tax (HST) is dropping from 15% to 14% starting April 1, 2025. That’s not an April Fool’s joke – it’s real, and you might see a small but welcome difference in your receipts.
Why Everyone Was Talking About a GST Hike
Let’s face it — governments everywhere are looking for ways to boost revenue post-COVID and amid inflation. So when rumors started swirling about a possible federal GST increase to 6% or more, people paid attention. But after the 2025 budget release, Finance Minister Chrystia Freeland made it clear: no GST hike this year.
What’s Actually Changing? Let’s Break It Down
1. GST/HST Credit Gets a Boost
If you’re a low- or modest-income Canadian, chances are you’ve been getting the GST/HST credit – a quarterly tax-free payment from the Canada Revenue Agency (CRA).
For 2025-2026, payments are up by 2.7%, reflecting the Consumer Price Index (CPI) adjustment from 2024. The first bump hits your bank on July 4, 2025, followed by quarterly payments through June 2026.
Example: A family of four could receive up to $1,189 per year in GST/HST credits.
2. Big Win for First-Time Home Buyers
If you’re trying to get into the housing market, this part’s for you. Starting mid-2025, first-time home buyers can claim a GST rebate of up to $50,000 on new homes.
To qualify:
- The property must be newly built or purchased after May 27, 2025
- Valued up to $1.5 million
- Must be your principal residence
This move helps reduce the tax burden and gives new homeowners a leg up in a tough market.
3. GST Exemption for Rental Construction
Under Bill C-56, the federal government is waiving 100% of the GST on new rental housing projects (multi-unit long-term rentals). This is a massive incentive for builders and developers.
It applies to:
- Apartment buildings
- Student housing
- Senior residences
And it’s available through the end of 2030.
What This Means for Regular Folks
Here’s the bottom line:
- If you’re shopping – no change in what you pay federally.
- If you’re in Nova Scotia, you’ll pay 1% less HST after April.
- If you’re low-income, your GST credit goes up.
- If you’re buying your first home, you might get $50K back.
- If you’re a landlord or developer, big GST savings ahead.
So whether you’re budgeting for groceries or planning your next real estate move, this update matters.
FAQs
Q: Is the GST going up in Canada in 2025?
A: Nope! The federal GST stays at 5%.
Q: When does Nova Scotia’s new HST rate take effect?
A: April 1, 2025 – down to 14% from 15%.
Q: Who qualifies for the GST/HST credit?
A: Canadians with low or modest income. Eligibility is based on your 2024 tax return.
Q: How do I apply for the first-time home buyer GST rebate?
A: Details are being finalized, but CRA says the application will be available online post-May 2025.
Q: What if I’m building rental units?
A: You’ll get a 100% GST waiver for qualifying projects until 2030.
