The Canada Revenue Agency (CRA) has announced a one-time payment of $250 intended to assist low to middle-income families. This payment is expected to to be disbursed in October and falls under relief measures subsidizing the day to day strain on living expenses for Canadians. No separate application is required as eligible taxpayers will be determined through their tax submissions in 2024.
Who is Eligible for the Payment?
Eligibility for the payment is determined based on the income bands set by the CRA. Households that have a net income under $50,000 in the 2024 tax year will be eligible for the full $250 payment, while those earning between $50,000 and 75,000 will receive a proportional amount. Qualifying seniors, families with children, and persons with disabilities who meet the income criteria will receive the full amount.
Important Highlights on Eligibility Criteria
No Action Needed – Automatic Payment
Given that no application is necessary, the CRA recommends not submitting an application, as all payments will be issued through the registered account by undeposited cheque. As long as the 2024 tax return payments are met, Canadians are advised to update their banking information or address through the CRA My Account to prevent delays.
Timing and Delivery
Payments will start being issued on October 15, 2025, and will be done in phases to manage the payment processing system’s millions of transactions. The CRA aims to complete all payments by mid-December. Once the window opens for payments, recipients will be able to track the status of their payment online.
How to Check Your Payment Status
Sign in to CRA My Account.
Click on “Payments and Credits.”
Check the status under “One-Time Cost-of-Living Payment.”
Impact and Context
While Canada’s inflation rate has been above the Bank of Canada’s target for the last several months, this payment of 250 dollars acts as a targeted relief for vulnerable households. Canada’s most recent consumer survey found that over forty percent of Canadians are struggling to meet basic expenses this year. The measure taken by CRA reinforces the overarching federal strategy which includes increased child benefits and energy rebates meant to support household budgets.
With the payments, Canadians are anticipated to be able to more easily pay for groceries, utilities, and other necessary expenses as the holidays approach.