Canada $250 one time payment: What You Need to Know!

05/22/2025

Reading Time : 5 min

canada $250 one time payment : Canada is introducing a new $250 Working Canadians Rebate for eligible individuals, along with temporary GST/HST relief on groceries and holiday essentials. Small businesses will also receive early Canada Carbon Rebate payments.

New $250 Working Canadians Rebate for eligible individuals.
Temporary GST/HST removal on various goods from December 14, 2024, to February 15, 2025.
Early Canada Carbon Rebate payments for small businesses.

Get ready for the Canada $250 one-time payment! Discover eligibility, dates, and how this new rebate puts more money in your pocket.

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Canada’s New $250 One-Time Payment: What You Need to Know!

Canadians are set to see more money in their pockets this holiday season and into the new year, thanks to significant new measures announced by the Honourable Chrystia Freeland, Deputy Prime Minister and Minister of Finance, alongside her colleagues.

These initiatives include a new $250 Working Canadians Rebate, temporary tax relief on everyday essentials, and expedited carbon rebate payments for small businesses. The goal is clear: to provide financial relief and stimulate the economy by empowering Canadians and small businesses.

The $250 Working Canadians Rebate: Who Benefits and When?

A key highlight of the new financial support is the Canada $250 one-time payment through the Working Canadians Rebate. Slated to begin in early spring 2025, this rebate is designed to directly assist 18.7 million Canadians, including an estimated 965,000 working seniors.

Who is eligible for the $250 payment Canada? If you worked in 2023 and earned up to $150,000, you are likely eligible. Specifically, Canadians who claimed tax credits for Canada Pension Plan/Quebec Pension Plan contributions or for Employment Insurance (EI) or Quebec Parental Insurance Plan (QPIP) premiums, and those who reported income from EI or QPIP benefits, with individual net income below $150,000 in 2023, would qualify.

This ensures that the payment reaches those who have diligently contributed to the workforce and are navigating current economic conditions.

The payment will be conveniently delivered either through direct deposit into your bank account or via a cheque mailed to your address. This direct injection of funds aims to help middle-class families and working individuals afford necessities and save for their financial goals, offering a tangible boost as they recover from inflationary pressures.

Tax Relief on Groceries and Holiday Essentials

Beyond the Canada CRA $250 one time payment dates, the government is also implementing a temporary but impactful tax break for all Canadians. Starting December 14, 2024, and running through February 15, 2025, the GST/HST will be removed from a wide array of groceries and other holiday essentials. This measure is anticipated to provide significant savings during a period of high expenses.

The types of goods that will be tax-free include:

Prepared foods (e.g., vegetable trays, pre-made meals, salads, sandwiches)
Restaurant meals (dine-in, takeout, or delivery)
Snacks (e.g., chips, candy, granola bars)
Low-alcohol beverages (beer, wine, cider, pre-mixed alcoholic beverages below 7% ABV)
Children’s clothing and footwear, car seats, and diapers
Children’s toys (e.g., board games, dolls, video game consoles)
Books, print newspapers, and puzzles for all ages
Christmas trees

This initiative means a family spending $2,000 on these qualifying goods could save $100 in GST over the two-month period. In provinces where HST also applies (Ontario, Newfoundland and Labrador, Nova Scotia, New Brunswick, and Prince Edward Island), the savings would be even more substantial. For example, in Ontario, the same $2,000 basket of purchases would result in HST savings of $260.

Early Carbon Rebates for Small Businesses

In a move to further support the Canadian economy, the Minister of Small Business announced that eligible small- and medium-business owners are receiving their tax-free Canada Carbon Rebate for Small Businesses payments earlier than anticipated. Starting November 25, 2024, direct deposits from the Canada Revenue Agency (CRA) began appearing in eligible businesses’ bank accounts. For those not signed up for direct deposit, cheques have been mailed out.

This accelerated delivery of over $2.5 billion in tax-free payments to approximately 600,000 Canadian businesses returns fuel charge proceeds collected from 2019-20 through 2023-24. Small businesses that have filed their tax returns and operate in jurisdictions where the federal fuel charge applies will automatically receive these payments from the CRA, without needing to apply.

The federal government emphasizes that these combined efforts—the $250 rebate Canada eligibility, the temporary GST/HST relief, and the early carbon rebates for businesses—are integral to their broader economic strategy aimed at making life more affordable for Canadians and fostering a thriving small business sector.

As the holiday season approaches and 2025 begins, these measures are designed to provide much-needed financial breathing room and contribute to economic stability.

Summary of Key Initiatives

Initiative	Beneficiaries	Details	Key Dates/Timing
Working Canadians Rebate ($250 Payment)	18.7 million working Canadians, including seniors	$250 one-time payment for individuals who worked in 2023 and earned up to $150,000 (net income). Eligibility based on CPP/QPP/EI/QPIP contributions or benefits.	Early Spring 2025
GST/HST Tax Break	All Canadians	Removal of GST/HST on prepared foods, restaurant meals, snacks, low-alcohol beverages, children’s clothing/footwear/toys, books, newspapers, puzzles, and Christmas trees.	Dec 14, 2024 – Feb 15, 2025
Canada Carbon Rebate for Small Businesses	Approx. 600,000 eligible small and medium businesses	Over $2.5 billion in tax-free payments, returning fuel charge proceeds from 2019-20 to 2023-24. Payments are automatic for eligible businesses that have filed tax returns.	Starting Nov 25, 2024 (Early)

FAQs about the Canada $250 One-Time Payment

Q1: What is the Canada $250 one-time payment?

A1: The Canada $250 one-time payment refers to the new “Working Canadians Rebate,” a federal initiative designed to provide financial relief to eligible individuals who worked in 2023 and earned up to $150,000.

Q2: When is the 250 rebate coming, and how will I receive it?

A2: Eligible Canadians can expect to start receiving the $250 Working Canadians Rebate in early spring 2025. Payments will be made either through direct deposit into your bank account or via a cheque mailed to your address.

Q3: Who will get the $250 one off payment? What is the $250 rebate Canada eligibility?

A3: The $250 one-time payment is for Canadians who worked in 2023 and had a net income below $150,000. Eligibility is tied to claiming tax credits for CPP/QPP contributions, EI/QPIP premiums, or reporting income from EI/QPIP benefits.

Q4: Is the Canada $250 one-time payment 2025 tied to the Canada CRA $250 one time payment dates?

A4: Yes, the “Canada $250 one-time payment” and “Canada CRA $250 one time payment dates” both refer to the same initiative – the Working Canadians Rebate, which will be administered by the CRA starting in early spring 2025.