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Understanding GST/HST Credit Payment Amounts

This section provides a detailed overview of the Goods and Services Tax/Harmonized Sales Tax (GST/HST) credit payment amounts, specifically focusing on the base year 2023 (for payments issued from July 2024 to June 2025) and contrasting it with the base year 2019. Understanding these amounts can help eligible individuals and families anticipate the financial support they may receive to offset the GST/HST they pay on goods and services.

Base Year 2023 (Payment Period: July 2024 - June 2025)

The GST/HST credit amounts for the base year 2023, which will determine payments issued from July 2024 to June 2025, are as follows:

Credit for eligible adult: $340
- This is the basic credit amount an eligible individual can receive.
Credit for each qualified child under 19: $179
- Eligible individuals can also receive an additional credit for each of their children who are under the age of 19.
Equivalent to spouse amount for single parents: $340
- Single parents are entitled to an additional amount equivalent to the spouse credit for one dependent child, recognizing the unique financial responsibilities of single-parent households. This is in addition to the regular child credit.
Supplement for single adults: $179
- Single individuals with low incomes may also be eligible for an additional supplement to further assist with the cost of GST/HST.
Phase-in threshold for supplement for single adults without children: $11,039
- The supplement for single adults without children begins to be phased in once their adjusted family net income exceeds this threshold. Below this income level, the full supplement amount may be received.
Phase-out threshold: $44,324
- The GST/HST credit, including any supplements, is gradually reduced (phased out) as an individual’s adjusted family net income rises above a certain level. For the July 2024 to June 2025 payment period, the credit will be fully phased out once the adjusted family net income reaches $44,324. This phase-out threshold can vary depending on the individual’s family situation (e.g., having children).

Alberta-Specific GST Rebates and Exemptions

While the Goods and Services Tax (GST) is a federal tax applicable across Canada, understanding the specific rebates and exemptions relevant to Alberta is crucial for both consumers and businesses operating within the province. Unlike some other provinces, Alberta does not have a provincial sales tax (PST). Therefore, the focus here is solely on exemptions from the 5% federal GST.

It’s important to distinguish between two types of GST exemptions: direct exemptions and zero-rated goods and services. As a consumer in Alberta, you will not pay GST on items falling into either category. The distinction primarily affects how businesses account for the GST they pay on inputs used to provide these exempt or zero-rated supplies.

Zero-Rated Goods and Services (0% GST Rate)

Zero-rated supplies are technically taxable under the GST legislation, but the applicable tax rate is 0%. This means that while no GST is charged to the consumer, businesses supplying zero-rated goods and services can still claim input tax credits (ITCs) for the GST they paid on related business expenses. This is a key difference from directly exempt supplies.

Here are the categories of goods and services that are zero-rated for GST in Alberta (consistent with federal regulations):

Basic Groceries: This category encompasses a wide range of essential food items intended for human consumption. Examples include:
- Meats (beef, poultry, pork, etc.)
- Fish and seafood
- Cereals and grains (flour, rice, pasta, bread)
- Dairy products (milk, cheese, yogurt)
- Eggs
- Fresh, frozen, and canned vegetables
- Coffee and tea (in their basic forms)
It’s important to note that certain food and beverage items are not zero-rated and are subject to GST (or HST in provinces where it applies). In Alberta, these items will have the 5% GST applied. Examples include:
- Snack foods (chips, candy, granola bars – unless specifically meeting the criteria for basic groceries)
- Liquor (beer, wine, spirits)
- Carbonated beverages (soda, pop)
- Prepared meals purchased for immediate consumption (e.g., takeout food, restaurant meals)
Prescription Drugs: Medications that legally require a prescription from a qualified health practitioner (like a doctor or dentist) are zero-rated. However, over-the-counter (OTC) drugs, which can be purchased without a prescription, are subject to GST. This distinction is based on the essential nature and medical necessity of prescribed medications.
Medical Devices: Various medical devices designed for specific health needs are zero-rated. This can include items like wheelchairs, artificial limbs, hearing aids, and other apparatus used to treat medical conditions or assist individuals with disabilities. The specific list of zero-rated medical devices is detailed in GST/HST legislation.
Feminine Hygiene Products: Products such as tampons, sanitary napkins, and menstrual cups are zero-rated, recognizing their essential nature and aiming to make them more affordable.

Directly Exempt Goods and Services (No GST Charged)

Directly exempt supplies are not subject to GST under any circumstances. Businesses providing directly exempt goods and services cannot claim input tax credits for the GST they pay on related business expenses. The final consumer simply does not pay GST on these items.

Here are the categories of goods and services that are directly exempt from GST in Alberta (consistent with federal regulations):

Residential Resales of Property that has been Previously Owned and Used: The sale of existing residential homes (where the property has been lived in before) is exempt from GST. However, the sale of newly constructed homes is generally subject to GST, although rebates may be available under certain conditions.
Rental Accommodations of Longer Than a Month: Long-term residential rentals, where the occupancy is for a period exceeding one month, are exempt from GST. Short-term rentals (e.g., hotel stays, vacation rentals for less than a month) are typically subject to GST.
Educational Services that Lead to a Certificate or Diploma or are Required for a Certain Practice: Educational services provided by recognized institutions (like universities, colleges, and vocational schools) that lead to a formal certification or diploma are exempt. Additionally, courses or training required to obtain or maintain a professional license or certification are also typically exempt. However, recreational courses or those not directly leading to a formal qualification may be subject to GST.
Medical and Dental Services: Most essential healthcare services provided by licensed medical practitioners (doctors, nurses) and dentists are exempt from GST. This aims to ensure that necessary medical and dental care is not burdened by sales tax. However, cosmetic procedures or services not primarily for health reasons may be taxable.
Financial Services such as Bank Fees: A range of financial services, including basic banking services and certain investment management fees, are exempt from GST. The definition of exempt financial services is complex and outlined in detail in GST/HST legislation. Examples for consumers might include basic chequing account fees or interest charges.
Legal Aid Services: Services provided under a legal aid plan, typically to individuals who cannot afford legal representation, are exempt from GST, ensuring access to justice is not hindered by tax.
Day-Care Services: Services provided by licensed or regulated day-care facilities for children are exempt from GST, recognizing the importance of affordable childcare for families.

Alberta Advantage: No Provincial Sales Tax

It is crucial to reiterate that in addition to these federal GST exemptions, consumers in Alberta benefit from the absence of a provincial sales tax. In provinces with HST (Harmonized Sales Tax), which combines the GST and a provincial sales tax, the overall sales tax rate is higher on many goods and services that are not exempt or zero-rated. Alberta’s 5% sales tax rate (the GST only) is therefore a significant advantage for consumers compared to provinces with HST.

Disclaimer: The content provided on this webpage is for informational purposes only and is not intended to be a substitute for professional advice. While we strive to ensure the accuracy and timeliness of the information presented here, the details may change over time or vary in different jurisdictions. Therefore, we do not guarantee the completeness, reliability, or absolute accuracy of this information. The information on this page should not be used as a basis for making legal, financial, or any other key decisions. We strongly advise consulting with a qualified professional or expert in the relevant field for specific advice, guidance, or services. By using this webpage, you acknowledge that the information is offered “as is” and that we are not liable for any errors, omissions, or inaccuracies in the content, nor for any actions taken based on the information provided. We shall not be held liable for any direct, indirect, incidental, consequential, or punitive damages arising out of your access to, use of, or reliance on any content on this page.

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