Canada's tax relief plan: Who gets a cheque?

What to know about the holiday tax break Jeremie Charron breaks down which items will be exempt from GST if the proposed tax break passes in the House.

The Canadian government has unveiled its plans for a sweeping GST/HST pause on select items during the holiday period.

The federal Liberals also announced most working Canadians can expect a cheque in the mail for $250. The cheques and tax relief still need approval in Parliament.

The day after the announcement, questions remain on how the whole thing will work. Here are the answers to some basic questions.

When does the tax break start?

GST/HST will be paused on a range of groceries, alcoholic products, kids’ clothes and more from Dec. 14 to Feb. 15.

How much money will I save?

Everyone’s shopping habits are different. CTVNews.ca has published a full list of qualifying products, which includes kids’ clothing, restaurant takeout, books and audiobooks, beer and wine, and more.

“A family spending $2,000 on qualifying goods, such as children’s clothing, shoes and toys, diapers, books, snacks for the house, or restaurant meals would realize GST savings of $100 over the two-month period,” reads the government’s estimation published online.

Who will get the $250 rebate?

The $250 sum, officially called the “Working Canadians Rebate,” will be sent to all Canadians who worked in 2023 and earned less than $150,000. The government estimated 18.7 million Canadians will get the money.

Canadians who did not work in 2023, including those who were retired and claiming CPP and/or OAS, are not eligible for the Working Canadians Rebate.

Additionally, the cheques will only be sent to people who file their 2023 tax return by Dec. 31, 2024, and:

Recipients must be Canadian residents on March 31, 2025. Those who are incarcerated for a period of at least 90 days prior to April 1, 2025, are not eligible.

“Our government can’t set prices, but we can give Canadians, and especially working Canadians, more money back in their pocket,” reads a quote from the prime minister included in the government’s news release.

When do I get my cheque?

Canadians will receive the $250 in their bank accounts or via cheque in the mail starting in early spring 2025.

Do you have questions on how Canada's tax relief and rebate plan works? Email us at [e-mail] with your name, general location and phone number in case we want to follow up. Your comments may be used in a CTVNews.ca story.