The Canadian government has introduced two new tax relief measures for 2025 to help citizens cope with rising living costs. These initiatives include a one-time $250 rebate for working Canadians and a temporary GST/HST exemption on groceries, meals, and holiday essentials. Together, these measures aim to put more money into Canadians’ pockets during the peak spending season and the start of 2025.
$250 Working Canadians Rebate
Beginning in spring 2025, around 18.7 million Canadians will receive a tax-free, one-time $250 payment. This rebate is designed to support workers who contributed to the Canadian economy during 2023 but may be struggling with current living expenses.
Eligibility for the rebate includes:
- Worked in Canada during 2023
- Earned $150,000 or less in individual net income
- Filed the 2023 tax return by December 31, 2024
The best part is that no application is required. The Canada Revenue Agency (CRA) will automatically issue payments through direct deposit or cheque, ensuring that eligible individuals receive their rebate without extra paperwork.
GST-Free Holiday Essentials
In addition to the rebate, Canadians will benefit from a GST/HST break between December 14, 2024, and February 15, 2025. During this period, a wide range of holiday and everyday essentials will be exempt from federal sales tax.
Items covered under this tax break include:
- Groceries and snacks
- Restaurant meals
- Children’s clothing, footwear, diapers, and toys
- Books and holiday gifts
This measure is expected to provide $1.6 billion in tax savings nationwide. For example, a family spending $2,000 on qualifying goods could save about $100 in GST/HST during the two-month window.
Why These Measures Matter
The combination of the $250 rebate and GST-free shopping is aimed at reducing household financial pressure. With inflation and rising costs affecting many families, these initiatives provide both direct financial support and day-to-day savings.
- The rebate ensures millions of Canadians receive immediate relief.
- The GST exemption makes holiday shopping and everyday spending more affordable.
Together, they help households better manage their budgets during one of the most expensive times of the year.
FAQs on Canada Tax Relief 2025
Who will get the $250 rebate?
Anyone who worked in 2023, earned up to $150,000, and filed a tax return on time.
Do I need to apply for the rebate?
No. The CRA will issue payments automatically.
When does GST-free shopping start?
It begins on December 14, 2024, and runs until February 15, 2025.
What items qualify for GST relief?
Groceries, meals, kids’ clothing, toys, books, and gifts.
How much can families save?
Around $100 on $2,000 spent during the GST-free period.
