The Ontario Sales Tax Credit (OSTC) is a tax-free benefit administered by the Canada Revenue Agency (CRA). If you are asking what is OSTC CRA, it is a payment designed to help low- to moderate-income Ontario residents offset the sales tax they pay.
Eligibility and payment amounts are determined based on your annual income tax and benefit return.
What is OSTC CRA: How the OSTC Works
- The OSTC is issued as part of the Ontario Trillium Benefit (OTB), which combines the Ontario Sales Tax Credit, the Ontario Energy and Property Tax Credit, and the Northern Ontario Energy Credit.
- Payments are made monthly, usually on the 10th of each month, starting in July after your tax return is assessed.
- You do not need to apply separately. The CRA automatically calculates your entitlement based on your tax return.
OSTC Payment Amounts
Based on 2024 Income Tax Return (Payments from July 2025 – June 2026)
- Maximum credit: $371 per adult and per child in the family.
- Single individuals: Credit reduced by 4% of income over $28,506.
- Families (married, common-law, or single parents): Credit reduced by 4% of family net income over $35,632.
Based on 2023 Income Tax Return (Payments from July 2024 – June 2025)
- Maximum credit: $360 per adult and per child.
- Single individuals: Credit reduced by 4% of income over $27,729.
- Families: Credit reduced by 4% of family net income over $34,661.
OSTC for Seniors
In certain tax years (2020, 2023, 2024), a seniors’ income threshold is applied. If you or your spouse/common-law partner is 64 or older on December 31 of the tax year, the OSTC threshold is higher than for non-seniors.
- 2024 return: Maximum $371, reduced by 4% of family net income over $36,497.
- 2023 return: Maximum $360, reduced by 4% of family net income over $37,387.
- 2020 return: Maximum $316, reduced by 4% of family net income over $30,959.
If both spouses are seniors, the OSTC is generally assigned to the spouse whose return is assessed first. If the non-senior spouse’s return is assessed first, the CRA will reassign the credit once the senior’s return is assessed.
Eligibility for OSTC CRA
To qualify for the OSTC:
- You must be a resident of Ontario.
- You must file an income tax and benefit return each year.
- Your entitlement is based on your net income, family status, and whether you have dependants.
If your annual OSTC entitlement is $360 or less, you may receive it as a lump-sum payment in July. If it is more than $360, it is divided into monthly payments.
Important Notes on OSTC Payments
- If the 10th of the month falls on a weekend or holiday, payment is made on the last working day before the 10th.
- If your tax return is assessed after June 19, your first payment will include prior months and will arrive within 4–8 weeks.
- You must refile your tax return each year to continue receiving OSTC.
FAQ on What is OSTC CRA
1. What is OSTC from the CRA?
The Ontario Sales Tax Credit (OSTC) is a tax-free payment from the CRA to help Ontario residents with low to moderate income offset sales tax costs.
2. How much is the OSTC payment in 2025?
For the 2024 return (payments July 2025 – June 2026), the maximum annual amount is $371 per adult and child.
3. When are OSTC payments issued?
Payments are made on the 10th of each month as part of the Ontario Trillium Benefit.
4. Do I need to apply for the OSTC?
No. The CRA automatically determines eligibility when you file your income tax and benefit return.
5. What if I do not receive a CRA OSTC payment?
Ensure your tax return is filed and assessed. If eligible, your payment will be included in your Ontario Trillium Benefit.
6. Can seniors receive a higher OSTC amount?
Yes. In certain years, the CRA applies a seniors’ income threshold, which allows higher eligibility limits.
7. What happens if my OSTC entitlement is less than $360?
It will be issued as a lump-sum payment in July instead of monthly installments.
