Canada Revenue Agency $1,350 Payment What You Need to Know As 2025 draws to a close many Canadians are hearing about a potential $1,350 one-time payment from the Canada Revenue Agency scheduled for December 31, 2025. This payment is being discussed as a year-end support measure intended to help people cope with increasing living expenses during a costly time of year. Housing prices continue to rise while grocery and energy bills strain household budgets nationwide. Transportation costs add further financial pressure. A single payment of this amount could provide meaningful assistance to families having difficulty covering their basic expenses. This article explains what this $1,350 payment might involve and identifies who could qualify to receive it. We also describe how the funds would be distributed to eligible Canadians and how this payment relates to other government benefits. Finally we provide the steps you should take now to ensure you are prepared.
What Is the $1,350 One-Time CRA Deposit
The $1,350 payment is being described as a one-time, non-taxable deposit administered through the Canada Revenue Agency (CRA). Unlike recurring programs such as the GST/HST credit or the Canada Child Benefit, this support is designed as a single, standalone measure to provide short-term financial relief toward the end of the year. It is not intended to replace or reduce any existing federal benefits. Instead, the payment aims to supplement current supports by offering immediate assistance without creating permanent obligations or long-term changes within the federal benefit system.
Canada’s Year-End Pension Schedule: $1,433 CPP and $840 OAS Payments Arrive 31 December 2025
Why December 31, 2025 Is the Planned Payment Date
The proposed payment date of December 31, 2025 follows a familiar government practice of issuing financial support close to major holidays. With limited banking hours and government office closures during the Christmas period, releasing funds before year-end helps ensure recipients can access their money without interruption. Late December is also a time when household costs tend to increase, including heating, groceries, travel, and year-end bills. A pre-holiday deposit is therefore timed to align with periods of higher financial pressure for many Canadians.
Who May Qualify for the $1,350 Payment
While final eligibility rules have not yet been officially confirmed, the expected criteria are likely to follow existing CRA benefit frameworks. These guidelines would rely on residency, tax filing status, and income levels to determine who qualifies. The goal is to target individuals and households most in need of short-term support while using information already available within the CRA system to streamline delivery.
Canadian Residency Requirement
To qualify, individuals would need to be residents of Canada for tax purposes at the time eligibility is assessed. Residency status would be determined using information provided on the most recently filed income tax return and existing CRA records.
Tax Filing Requirement
Eligibility is expected to depend on data from the most recent tax return, likely the 2024 tax year. Even Canadians with low or no income would still need to file a return to be considered for the payment, as the CRA relies on this information to assess eligibility.
Income-Based Eligibility
The payment is widely anticipated to be income-tested, with priority given to low- and middle-income individuals. Those with higher incomes may receive a reduced amount or may not qualify at all, depending on where they fall within the proposed income thresholds.
Adults and Households
The deposit is expected to be issued on a per-adult basis, though household income may affect eligibility limits. In couples or family households, more than one adult could qualify, potentially increasing the total support received.
How the $1,350 Amount Is Designed
The $1,350 amount is described as a flat, one-time payment rather than a recurring or gradually phased benefit. This structure simplifies administration and ensures that eligible recipients receive the full amount in a single deposit without ongoing adjustments.
Individual Payments
Each eligible adult may receive up to $1,350. In households where two adults qualify, the combined support could reach as much as $2,700, subject to income limits and eligibility rules.
Non-Taxable Treatment
The payment is expected to be non-taxable, meaning it would not be reported as income on future tax returns. This approach helps ensure the full value of the payment reaches recipients without affecting other income-tested programs.
How the Payment Would Be Issued
The CRA is expected to use existing payment methods to deliver the deposit, ensuring consistency with other federal benefits and minimizing administrative delays.
Direct Deposit
Canadians who are already registered for direct deposit with the CRA would receive the payment automatically in their bank accounts on December 31, 2025. Direct deposit remains the fastest and most reliable method of payment.
Cheque by Mail
Individuals without direct deposit set up would receive a paper cheque mailed to their registered address. Due to higher mail volumes during the holiday season, delivery could take longer than the scheduled payment date.
How This Deposit Fits With Existing CRA Benefits
The $1,350 one-time payment is expected to remain separate from all ongoing federal benefit programs. It would not replace or reduce payments such as the GST/HST credit, Canada Child Benefit, Old Age Security, Guaranteed Income Supplement, Canada Pension Plan benefits, or Climate Action Incentive payments. Because it is a single deposit, it would not affect benefit calculations going into 2026.
What Seniors Should Keep in Mind
Seniors are often more affected by rising living costs, especially those on fixed incomes. Important considerations include ensuring tax returns are filed even with minimal income, understanding that a non-taxable payment should not impact OAS or GIS, and noting that couples may receive two payments if both partners qualify. Setting up direct deposit can help avoid delays linked to holiday mail delivery.
What Families and Low-Income Canadians Can Expect
For families already receiving federal benefits, the $1,350 payment may be issued automatically if eligibility conditions are met. The funds could help cover seasonal expenses such as groceries, winter clothing, heating and utility bills, transportation costs, or reducing outstanding debts. The one-time structure allows households to decide how best to use the support.
Steps to Take Now to Prevent Delays
Canadians can reduce the risk of payment delays by ensuring their most recent tax return has been filed and processed, confirming direct deposit information with the CRA, and updating personal details such as address, marital status, or residency changes. Monitoring official CRA communications through secure channels is also recommended.
Common Reasons Payments May Be Delayed or Reduced
Delays or reductions may occur if income exceeds eligibility thresholds, tax returns are unfiled or reassessed, banking details are incorrect, household composition has changed, or residency status is unclear. Most issues can be resolved by updating CRA records or contacting the agency directly.
Staying Alert to Misinformation and Scams
Highly publicized payments often attract misleading claims and scams. Canadians should be cautious of messages requesting banking information, demands for fees, or unofficial emails and texts using urgent language. Legitimate CRA payments are automatic and do not require sharing sensitive information outside secure platforms.
Why Governments Use One-Time Payments
One-time payments allow governments to respond quickly to economic pressures without permanently altering benefit programs. They are often used when inflation, energy costs, or living expenses rise faster than scheduled benefit increases.
Planning for the December 31 Deposit
Households expecting the $1,350 payment may choose to allocate it toward winter expenses, reduce high-interest debt, save for early 2026 costs, or offset holiday spending. Because the payment is non-taxable and delivered as a lump sum, it offers flexibility to address individual financial priorities.
