Millions of Canadians are set to receive a new $300 one-time federal payment in late December 2025, offering targeted financial relief to low- and modest-income households facing persistent cost-of-living pressures. Administered automatically by the Canada Revenue Agency (CRA), the benefit aims to support individuals and families who qualify for certain government programs, including the GST/HST Credit, Old Age Security (OAS), Guaranteed Income Supplement (GIS), and Canada Workers Benefit (CWB).
The payment, part of Ottawa’s updated affordability framework, will arrive directly in recipients’ bank accounts without any need for reapplication. Its timing—just ahead of the New Year—ensures that struggling Canadians receive timely assistance during one of the most expensive periods of the year.
Why the $300 Federal Payment Was Introduced
The $300 federal payment forms part of Canada’s 2025 cost-of-living response, targeting households most affected by inflation in essential categories such as food, rent, transportation, and utilities. The government designed this initiative as an immediate, short-term measure rather than a permanent grant to offer relief before the holiday and winter seasons.
Unlike recurring supports such as the Canada Child Benefit (CCB) or Canada Pension Plan (CPP), this payment is a single lump-sum transfer sent automatically by CRA based on verified tax and benefit data. Economic analysts describe it as both a stabilizer and a stimulus—helping families manage higher bills while supporting local businesses as that money recirculates in the economy.
The initiative complements existing credits like the quarterly GST/HST payment and the OAS supplement, both central to federal affordability programs. By using established CRA systems, the government avoids extensive administration costs and ensures efficient, timely distribution.
Eligibility Rules for the New $300 Payment
The CRA determines eligibility automatically, drawing on the most recent tax filings and benefit records from the 2024 tax year. Canadians do not need to submit a separate application—meeting the income and residency criteria automatically qualifies individuals.
To qualify, recipients must:
- Be Canadian residents for tax purposes.
- Be aged 19 or older, or younger if living with a spouse, common-law partner, or dependent child.
- Have filed a 2024 income tax return before early 2025.
- Have an adjusted family net income within specific thresholds.
Key target groups include low- and modest-income households receiving:
- GST/HST Credit
- Old Age Security (OAS) or GIS
- Canada Workers Benefit (CWB)
- Canada Child Benefit (CCB) recipients in lower income brackets
Estimated income thresholds for the full $300 are approximately:
- Singles: up to $20,914 (partial payments until $36,749)
- Married or common-law couples: up to $45,000 combined income
- Single parents with one child: up to $48,000
- Families with two or more children: up to $55,000
Seniors receiving OAS or GIS automatically qualify, as do disabled workers benefiting from the CWB disability supplement. There are no citizenship exclusions for permanent residents or protected persons, provided they meet tax residency rules.
However, individuals with outstanding tax debts or overpayment balances may see deductions from their payment. Those incarcerated for over 90 consecutive days or temporarily non-resident are also excluded.
Payment Dates and Delivery Schedule
The CRA has confirmed that payments will begin on December 29, 2025, coinciding with the year-end processing cycle for other federal benefits like GST/HST credits and OAS supplements.
Key distribution details include:
- Direct deposit recipients will see payments automatically labeled as “CRA Payment” by December 29.
- Cheque recipients may experience delays of 7–14 days, with arrival expected in early January 2026.
- Electronic filers and individuals with verified banking information will be prioritized for early processing.
If the 2024 tax return was filed late but processed by mid-December, eligible individuals may still receive payment by late December or early January. Canadians are urged to verify their banking details through CRA My Account or by calling 1-800-959-8281 to avoid payment disruptions.
Who Will Receive the $300 Payment
The CRA’s integrated approach ensures various categories of Canadians receive the relief automatically:
| Household Type | 2024 Net Income Range | Expected Payment | Common Qualifying Benefits |
|---|---|---|---|
| Single individual | $20,914 – $36,749 | $300 | GST/HST Credit, CWB |
| Married or common-law couple | $25,000 – $45,000 | $300 | OAS, GIS, GST/HST |
| Single parent (1 child) | $28,500 – $48,000 | $300 | CCB, GST/HST Credit |
| Family (2+ children) | $35,000 – $55,000 | $300 | CCB, CWB |
| Senior (OAS/GIS recipient) | Up to $21,600 | $300 | OAS/GIS |
| Disabled low-income worker | $26,000+ supplement | $300 (+ add-ons) | CWB Disability Supplement |
These thresholds ensure targeted assistance to those most affected by the cost-of-living increases. Over 80% of eligible low-income earners qualify automatically under CRA’s verification system, supported by direct data matching with benefit databases.
Avoiding Delays and Common Challenges
To ensure timely processing, recipients should take a few proactive steps:
- Confirm tax filings: File or update 2024 returns immediately if outstanding.
- Verify bank data: Log in to CRA My Account to confirm direct deposit details.
- Report life changes: Notify CRA promptly of marital status changes, dependents, or address updates.
- Check benefit eligibility: Ensure enrolment in at least one qualifying program such as GST/HST, OAS, or CWB.
Late or missing tax returns remain the top reason for missed payments. Additionally, outstanding government debts may lead to offset deductions, reducing the net $300 received.
Broader Economic Impact and Policy Context
Economists note that one-time government transfers like the $300 payment can deliver measurable short-term relief while boosting retail and service-sector spending. For 2025, federal data projects nearly six million households will benefit from this infusion, with economic multipliers exceeding 1.1 times per dollar spent.
The CRA’s streamlined distribution ensures that funds go directly to those most likely to use them on necessities—utilities, groceries, and rent—rather than discretionary spending. The government positions the payment as a bridge to longer-term affordability reforms, focusing on sustaining purchasing power amid moderate inflation forecasts heading into 2026.
Preparing to Receive the $300 Benefit
Eligible Canadians should monitor their CRA My Account dashboard for payment notifications beginning in mid-December. Filing a 2024 tax return early remains the single most important step to guarantee eligibility.
Recipients should plan to allocate the $300 strategically—either toward essential expenses, debt repayment, or savings—ensuring it delivers lasting benefit beyond short-term relief.
By leveraging CRA’s established infrastructure, the December 2025 federal payment stands as a swift, efficient measure supporting Canadians through ongoing economic challenges. With direct deposits landing by December 29, and cheques soon after, the payment will provide crucial financial ease for millions closing out the year.