Finance

Harmonized Sales Tax Credit (HST)

The HST credit is a refundable tax credit for low income residents of this province. The credit amounts are: $40 per adult and $60 per child for taxpayers with net family income of $15,000 or less. The credit is reduced by 5% when net family income exceeds $15,000. The credit is paid in October of each year and is included with the federal GST credit. The amount of the credit is based on net family income from the previous year. This credit is provided under Section 34 of the Income Tax Act.

Effective January 1, 2016, the HST rate is increasing from 13 per cent to 15 per cent with the provincial portion of the HST increasing from eight per cent to 10 per cent. To mitigate the impact on low income individuals and families, the HST credit is being enhanced effective with the October 2016 payment. The credit amounts are: $300 for eligible individual, $60 per qualifying relation and $60 per qualifying dependent for taxpayers with net family income of $30,000 or less. The credit is reduced by 5% when net family income exceeds $30,000.

While fully funded by the Government of Newfoundland and Labrador, the HST Credit is administered by the Canada Revenue Agency. To learn more about the administration of the GST/HST, please visit the CRA webpage: http://www.cra-arc.gc.ca/bnfts/gsthst/menu-eng.html

For more information about the HST Credit, please contact:

Department of Finance

Fiscal and Economic Policy Branch
P.O. Box 8700
St. John's, NL
A1B 4J6
Tel: (709) 729-3166
Fax: (709) 729-2070
 
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