More details on the $500 one-time tax-free payment to low-income renters

Update (December 12, 2022): The one-time top up is now available using your My CRA account. Applications are open until Friday, March 31, 2023.

The federal government proposed a one-time payment of $500 to low-income renters as part of the 2022 Budget to make housing more affordable. A recent press release from the Department of Finance shines more light on the details of the plan including eligibility.

The proposed benefit is estimated to reach 1.8 million low-income renters, including students and would be launched by the end of the year pending Parliamentary approval and Royal Assent.

The benefit would be available to renters with adjusted net incomes below $35,000 for families, or $20,000 for individuals.

Eligibility would be determined with an up-front verification of the applicant’s income, age and residency for tax purposes. Applicants would need to have filed their 2021 tax return and provide information and attest that they:

• Are paying at least 30% of their adjusted net income on shelter;

• Are paying rent for their own primary residence in Canada, which would include the address of the rental property, the amount of the rent paid in 2022, and the landlord’s contact information; and

• Consent to the Canada Revenue Agency verifying their information to confirm eligibility.

This one-time payment would not reduce other federal income-tested benefits, such as the Canada Workers Benefit, the Canada Child Benefit, the Goods and Services Tax Credit and the guaranteed Income Supplement.

But wait… there is more.

The Department of Finance is also proposing to double the GST Credit for six months. Recipients that qualify do not need to apply for the additional payment but should file their 2021 tax return if they have not done so already.

The GST Credit depends on family size and income. Under the current program, for the July 2022 through June 2023 benefit year, eligible people can receive up to:

• $467 for singles without children;

• $612 for married or common-law partners;

• $612 for single parents; plus

• $161 for each child under the age of 19.

Those with family net income of less than $39,826 in 2021 will receive the full Credit amount. The GST Credit amount is gradually lowered as income increases. The full phasing out depends on family type. For example, it is fully phased out at about $49,200 for a single person without children, and at about $58,500 for a couple with two children.

With the proposed benefit increase would effectively increase the benefit received by 50% as follows:

• $700.50 for singles without children;

• $918 for married or common-law partners;

• $918 for single parents; plus

• $241.50 for each child under the age of 19.