Canada Confirms $250 Working Rebate for 18.7 Million Workers, Plus GST-Free Shopping This Winter

Millions of Canadians will see extra cash in their pockets in 2025 thanks to two major federal cost-of-living relief measures: a \$250 Working Canadians Rebate and a temporary GST/HST holiday on essential goods during peak winter spending months.

The government says the twin initiatives aim to help Canadians — including citizens, permanent residents, and international students with permanent status — cope with rising expenses. With everyday costs still climbing, the combined value of these measures could offer meaningful financial breathing room for households nationwide.

\$250 Working Canadians Rebate – Direct Support for 18.7 Million People

Starting in early spring 2025, roughly 18.7 million Canadians will receive a one-time, tax-free \$250 payment. The payment targets individuals who were active in the workforce in 2023 but earned less than \$150,000 in net income.

Eligibility criteria include:

• You worked in Canada during 2023
• Your individual net income was \$150,000 or less
• You filed your 2023 tax return by December 31, 2024

The Canada Revenue Agency (CRA) will handle the distribution automatically. This means no separate application is required — eligible individuals will receive their payment by direct deposit or cheque, depending on their CRA account preferences.

For many households, this rebate will serve as a small but valuable offset for rising housing, grocery, and transportation costs.

GST-Free Holiday Essentials – A Seasonal Boost for Families

From December 14, 2024, to February 15, 2025, Canadians will enjoy a full GST/HST exemption on a broad range of holiday and household essentials.

Qualifying purchases include:

• Groceries and snacks
• Restaurant meals
• Children’s clothing and footwear
• Toys, books, and diapers
• A variety of gifts and seasonal items

Retailers will automatically remove the GST/HST at checkout, giving shoppers instant savings without the need for coupons or rebate forms.

Example savings: A family spending \$2,000 on eligible purchases during this period would save around \$100 in GST.

The government estimates that this seasonal tax break will deliver \$1.6 billion in total relief nationwide, supporting households during the busiest shopping months of the year.

Why These Measures Matter

With inflation still affecting Canadian wallets, the combination of direct cash payments and sales tax relief addresses two major cost-of-living pain points:

1. Immediate, no-strings financial boost – The \$250 rebate delivers funds directly to millions of workers, helping cover bills, groceries, or other essentials.
2. Reduced upfront prices during peak spending months – The GST holiday allows Canadians to save instantly on items they typically buy in larger quantities during the winter season and holidays.

Economists say the dual approach offers targeted relief while encouraging consumer spending in a way that benefits both households and local businesses.

How to Make the Most of the Relief

For the \$250 rebate:

• Ensure your 2023 tax return is filed before the December 31, 2024 deadline
• Update your CRA My Account to confirm your banking information for faster direct deposit

For the GST holiday:

• Plan major household and holiday purchases during the December 14 – February 15 window
• Combine GST-free shopping with store discounts to maximize savings
• Keep receipts for eligible purchases in case of any CRA queries

The Bigger Picture – Cost of Living Relief in 2025

These measures join other affordability programs introduced in recent years, including enhancements to the Canada Child Benefit, adjustments to Old Age Security for seniors, and targeted housing supports.

While \$250 may not cover the full cost of any single expense for most households, the combined effect of the rebate and GST holiday could help Canadians navigate the expensive holiday season and the challenging months that follow.

5 Key FAQs

1. Who is eligible for the \$250 rebate?
Anyone who worked in Canada in 2023, earned \$150,000 or less in individual net income, and filed their 2023 tax return by December 31, 2024.

2. Do I need to apply for the \$250 rebate?
No. The CRA will send it automatically to eligible individuals via direct deposit or cheque.

3. When does the GST-free holiday start?
It runs from December 14, 2024, to February 15, 2025.

4. What purchases qualify for GST/HST removal?
Groceries, restaurant meals, snacks, children’s clothing and footwear, toys, diapers, books, and a variety of gift items.

5. How much could my family save during the GST holiday?
A family spending \$2,000 on eligible items could save approximately \$100 in GST.