Canadian households are set to receive welcome financial relief in 2025 as the Canada Revenue Agency (CRA) prepares to issue a $1,350 one-time payment to eligible citizens. This initiative, part of the federal government’s ongoing effort to combat rising living costs, is designed to support low- and middle-income Canadians who have been hardest hit by inflation, housing costs, and higher grocery prices.
The one-time benefit, expected to be distributed later in 2025, will provide much-needed financial assistance to millions of Canadians struggling to keep up with everyday expenses. Here’s everything you need to know about the payment, eligibility criteria, and how to ensure you receive it on time.
Understanding the CRA $1,350 One-Time Payment
The CRA $1,350 payment is a targeted financial relief measure introduced by the Canadian government to help offset cost-of-living pressures. It is a non-taxable, one-time benefit designed for individuals and families with modest or moderate incomes.
The payment will be automatically issued to eligible Canadians through the Canada Revenue Agency (CRA), meaning those who qualify won’t need to apply separately. The CRA will use information from your most recent tax return to determine eligibility and deposit the funds directly into your bank account.
This initiative reflects the government’s broader focus on affordability, complementing existing programs such as the GST/HST credit, Canada Workers Benefit (CWB), and Canada Child Benefit (CCB).
Who Is Eligible for the $1,350 Payment in 2025?
Eligibility for the CRA $1,350 one-time payment will depend on income level, filing status, and residency. Below are the key qualification factors expected to apply:
1. Income Requirements
The payment is primarily aimed at low- and middle-income Canadians. Based on the most recent guidelines, eligibility thresholds may include:
- Single individuals earning less than approximately $70,000 per year.
- Couples or families with a combined income under $125,000 annually.
These thresholds may vary depending on the province, household size, and other benefits received.
2. Tax Filing Requirement
You must have filed your 2024 income tax return to be considered eligible. The CRA uses your latest tax information to verify income, residency, and eligibility for benefits. Those who have not filed taxes risk missing out on the payment.
3. Residency Status
Applicants must be Canadian residents for tax purposes during the 2024 tax year and at the time the payment is issued in 2025.
4. Other Eligibility Factors
- Individuals already receiving GST/HST credits, Canada Workers Benefit, or Old Age Security (OAS) may automatically qualify.
- Students, part-time workers, and fixed-income seniors who meet income thresholds will also be eligible.
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Payment Distribution and Method
The CRA is expected to deposit the $1,350 payment directly into recipients’ bank accounts through the same method used for tax refunds and other federal benefits.
For those not enrolled in direct deposit, a paper cheque will be mailed to the address on file. However, recipients are encouraged to sign up for direct deposit to ensure faster and more secure delivery.
Expected Payment Timeline
While the government has yet to release the exact payment date, sources indicate that the one-time deposit is expected around mid to late 2025, following the tax season review period.
Those who filed taxes early in 2025 and have their information updated with CRA are likely to receive their payment first.
Why the CRA Introduced the $1,350 Payment
Rising inflation and interest rates have placed significant strain on Canadian households. From groceries and rent to energy bills, the cost of living has increased sharply since 2023.
The $1,350 one-time payment is part of the government’s effort to:
- Ease cost-of-living pressures on low- and middle-income earners.
- Support seniors and families managing essential expenses.
- Stimulate the economy by increasing short-term consumer spending.
By targeting individuals and households most affected by inflation, the payment aims to deliver meaningful, immediate relief without requiring additional paperwork or complex application processes.
How to Make Sure You Receive the Payment
To ensure you don’t miss out on the CRA one-time payment, follow these important steps:
- File Your 2024 Tax Return on Time
The CRA relies on your latest tax information to assess eligibility. Failing to file will automatically exclude you from receiving the payment. - Enroll in Direct Deposit
Set up direct deposit through your CRA MyAccount or your financial institution to receive payments faster and more securely. - Update Your Information
Make sure your mailing address, bank account, and marital status are up to date in your CRA account. Outdated information could cause delays. - Check CRA Notices
Watch for official communications or payment confirmations from CRA to know when your benefit is processed.
Impact on Different Groups
For Seniors
Many seniors living on fixed incomes will benefit from the additional $1,350 payment. Combined with Old Age Security (OAS) and the Guaranteed Income Supplement (GIS), it provides an important financial cushion against rising medical and housing costs.
For Working Families
Families managing daycare, food, and utility expenses will find the one-time payment a timely relief. It may also complement other benefits such as the Canada Child Benefit (CCB).
For Single Workers and Students
Individuals balancing rent, tuition, and part-time employment will appreciate the lump-sum payment as a buffer against inflation and everyday expenses.
Frequently Asked Questions (FAQs)
1. Is the CRA $1,350 payment taxable?
No. The payment is non-taxable and does not need to be reported as income on your tax return.
2. Do I need to apply for the payment?
No application is required. The CRA will automatically determine eligibility based on your 2024 tax filing.
3. When will payments be made?
The deposit is expected to be distributed around mid to late 2025, with exact dates to be announced closer to the release.
4. Can I receive the payment if I receive other benefits?
Yes. The one-time payment does not affect your eligibility for other CRA benefits or provincial supports.
5. What if I miss the payment?
If you were eligible but didn’t receive it, you can contact CRA to review your eligibility and request reissuance.
The CRA $1,350 one-time payment in 2025 is a welcome development for Canadians facing persistent cost-of-living challenges. By automatically delivering the benefit to eligible individuals and families, the federal government ensures that financial assistance reaches those who need it most, without extra paperwork or delays.
With inflation and affordability concerns still affecting millions, this measure provides much-needed relief while reinforcing the government’s commitment to supporting economic stability and fairness across the country.