The Canada Revenue Agency (CRA) is issuing a $250 one-time tax-free rebate in May 2025 to help low- and middle-income Canadians manage rising living expenses. Designed to offer urgent support for daily essentials such as groceries, rent, and utilities, this rebate comes at a critical time when inflation continues to challenge households across the country.
Here’s everything you need to know about eligibility, payment timelines, and how to make sure you receive it without delay.
Who Qualifies for the CRA $250 Payment?
To be eligible for the CRA’s $250 rebate, individuals must meet the following criteria:
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Residency: Must be a Canadian citizen or permanent resident.
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Duration: Must have lived in Canada for at least 12 months before May 2025.
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Tax Filing: Must have filed your 2023 income tax return by December 31, 2024.
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Income Limits:
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Single individuals: Income under $50,000
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Couples or households: Income under $75,000
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Income Source: Must have had some reportable income in 2023 from employment, self-employment, or government benefits.
This rebate is not linked to a specific benefit program, meaning a wide range of Canadians—including workers, retirees, and students—may qualify.
How Will the Payment Be Delivered?
No application is required. The CRA will automatically issue the $250 rebate to eligible individuals in May 2025.
| Payment Method | Delivery Timeframe |
|---|---|
| Direct Deposit | 5–7 business days from release |
| Paper Cheque | 10–15 business days |
To avoid delays, ensure your banking and mailing details are current in your CRA My Account.
Steps to Ensure You Get Your $250 Rebate
To guarantee your payment arrives smoothly, follow these steps:
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File Your 2023 Taxes – The CRA relies on your return to determine eligibility.
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Update Banking Details – Use your CRA My Account to update bank info and mailing address.
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Monitor Your CRA Account – Log in regularly to check payment status and eligibility flags.
Additional Benefits You May Qualify For
This $250 rebate is only one of several financial supports available in 2025. You may also qualify for:
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GST/HST Credit
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Canada Workers Benefit (CWB)
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Canada Child Benefit (CCB)
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Provincial housing or energy rebates
Log into your CRA portal to review your full list of eligible benefits.
Why the CRA $250 Rebate Matters in May 2025
As the cost of living continues to impact Canadian families, this $250 tax-free rebate offers meaningful relief. Whether it covers a week of groceries or reduces the stress of overdue utility bills, the payment is timely and easy to access for most recipients.
By keeping your tax filings up to date and contact details accurate, you can receive this payment without submitting an application or visiting any CRA office.
FAQs
Do I need to apply for the CRA $250 rebate?
No. The rebate is automatically paid based on your 2023 tax return.
What if I haven’t received the payment by mid-May?
Wait 15 business days. If the rebate doesn’t arrive, contact the CRA directly to review your eligibility.
Will this rebate affect my other government benefits?
No. The rebate is non-taxable and does not impact any ongoing benefits like GIS, OAS, or CCB.
Can I still receive this if I’m self-employed or a student?
Yes, as long as you meet the income and residency criteria.
Will couples receive $250 each?
Yes, if both individuals in the household meet the eligibility criteria independently.
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Aanchal is a passionate writer with a keen interest in storytelling, content creation, and creative expression. She enjoys exploring diverse topics and crafting engaging narratives that captivate readers.