Starting in July 2025, Canadians will see an increase in several federal benefits and tax rebates as the government adjusts them to reflect the rising cost of living. Since 2018, Ottawa has indexed benefit amounts annually based on the Consumer Price Index (CPI) to ensure they keep pace with inflation. A spokesperson for Employment and Social Development Canada (ESDC) explained that this “indexation” raises both the maximum benefit amounts and income thresholds. For the new benefit year beginning in July, Canadians will receive a 2.7% increase in several key benefits.
Among these is the GST/HST credit, a quarterly tax-free payment aimed at helping low- and moderate-income households. With the 2.7% adjustment, eligible recipients can now receive up to $533 for a single person, $698 for a married or common-law couple, and $183 per child under 19. The Canada Workers Benefit Advance (ACWB), an advance on the refundable Canada Workers Benefit tax credit for low-income workers, will also see a corresponding increase.
Families receiving the Canada Child Benefit (CCB) will benefit from a 2.7% raise. The annual amount for children under age 6 will increase from $7,787 to $7,997 (about $666 monthly), while those with children aged 6 to 17 will see payments rise from $6,570 to $6,748 (or $562 monthly). Seniors will also benefit from these adjustments. The Old Age Security (OAS) payment will increase by 1% in the July–September quarter, contributing to a total 2.3% increase for the year. Additionally, Canada Pension Plan (CPP) payments are set to rise by 2.6% in 2025. These updates aim to support Canadians more effectively as they navigate the continued pressures of inflation and the rising cost of living.
