{"id":125,"date":"2025-08-28T18:38:00","date_gmt":"2025-08-28T18:38:00","guid":{"rendered":"https:\/\/myinformernews.com\/canada\/?p=125"},"modified":"2026-08-25T08:04:25","modified_gmt":"2026-08-25T08:04:25","slug":"what-is-ostc-cra","status":"publish","type":"post","link":"https:\/\/myinformernews.com\/canada\/what-is-ostc-cra\/","title":{"rendered":"What is OSTC CRA: Complete Guide to the Ontario Sales Tax Credit"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">The <strong>Ontario Sales Tax Credit (OSTC<\/strong>) is a tax-free benefit administered by the <strong>Canada Revenue Agency (CRA<\/strong>). If you are asking <strong>what is OSTC CRA,<\/strong> it is a payment designed to help low- to moderate-income Ontario residents offset the sales tax they pay. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Eligibility and payment amounts are determined based on your annual income tax and benefit return.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What is OSTC CRA: How the OSTC Works<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The OSTC is issued as part of the <strong>Ontario Trillium Benefit (OTB<\/strong>), which combines the Ontario Sales Tax Credit, the Ontario Energy and Property Tax Credit, and the Northern Ontario Energy Credit.<br><\/li>\n\n\n\n<li>Payments are made monthly, usually on the <strong>10th of each month<\/strong>, starting in July after your tax return is assessed.<br><\/li>\n\n\n\n<li>You do not need to apply separately. The CRA automatically calculates your entitlement based on your tax return.<br><\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">OSTC Payment Amounts<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">Based on 2024 Income Tax Return (Payments from July 2025 \u2013 June 2026)<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Maximum credit: <strong>$371 per adult and per child<\/strong> in the family.<br><\/li>\n\n\n\n<li>Single individuals: Credit reduced by 4% of income over<strong> $28,506<\/strong>.<br><\/li>\n\n\n\n<li>Families (married, common-law, or single parents): Credit reduced by 4% of family net income over <strong>$35,632<\/strong>.<br><\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Based on 2023 Income Tax Return (Payments from July 2024 \u2013 June 2025)<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Maximum credit: <strong>$360 per adult and per child.<br><\/strong><\/li>\n\n\n\n<li>Single individuals: Credit reduced by 4% of income over <strong>$27,729.<br><\/strong><\/li>\n\n\n\n<li>Families: Credit reduced by 4% of family net income over <strong>$34,661.<br><\/strong><\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">OSTC for Seniors<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">In certain tax years (2020, 2023, 2024), a <strong>seniors\u2019 income threshold<\/strong> is applied. If you or your spouse\/common-law partner is <strong>64 or older on December 31 of the tax year<\/strong>, the OSTC threshold is higher than for non-seniors.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>2024 return<\/strong>: Maximum $371, reduced by 4% of family net income over <strong>$36,497<\/strong>.<br><\/li>\n\n\n\n<li><strong>2023 return<\/strong>: Maximum $360, reduced by 4% of family net income over <strong>$37,387<\/strong>.<br><\/li>\n\n\n\n<li><strong>2020 return<\/strong>: Maximum $316, reduced by 4% of family net income over <strong>$30,959<\/strong>.<br><\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">If both spouses are seniors, the OSTC is generally assigned to the spouse whose return is assessed first. If the non-senior spouse\u2019s return is assessed first, the <a href=\"https:\/\/myinformernews.com\/canada\/cra-confirmation-number\/\" data-type=\"link\" data-id=\"https:\/\/myinformernews.com\/canada\/cra-confirmation-number\/\">CRA <\/a>will reassign the credit once the senior\u2019s return is assessed.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Eligibility for OSTC CRA<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">To qualify for the OSTC:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>You must be a resident of Ontario.<br><\/li>\n\n\n\n<li>You must file an income tax and benefit return each year.<br><\/li>\n\n\n\n<li>Your entitlement is based on your net income, family status, and whether you have dependants.<br><\/li>\n<\/ol>\n\n\n\n<p class=\"wp-block-paragraph\">If your annual OSTC entitlement is <strong>$360 or less<\/strong>, you may receive it as a <strong>lump-sum payment<\/strong> in July. If it is more than $360, it is divided into monthly payments.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Important Notes on OSTC Payments<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>If the <strong>10th of the month<\/strong> falls on a weekend or holiday, payment is made on the last working day before the 10th.<br><\/li>\n\n\n\n<li>If your tax return is assessed <strong>after June 19<\/strong>, your first payment will include prior months and will arrive within 4\u20138 weeks.<br><\/li>\n\n\n\n<li>You must refile your tax return each year to continue receiving OSTC.<br><\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">FAQ on What is OSTC CRA<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>1. What is OSTC from the CRA?<br><\/strong>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.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>2. How much is the OSTC payment in 2025?<br><\/strong>For the 2024 return (payments July 2025 \u2013 June 2026), the maximum annual amount is $371 per adult and child.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>3. When are OSTC payments issued?<br><\/strong>Payments are made on the 10th of each month as part of the Ontario Trillium Benefit.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>4. Do I need to apply for the OSTC?<br><\/strong>No. The CRA automatically determines eligibility when you file your income tax and benefit return.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>5. What if I do not receive a CRA OSTC payment?<br><\/strong>Ensure your tax return is filed and assessed. If eligible, your payment will be included in your Ontario Trillium Benefit.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>6. Can seniors receive a higher OSTC amount?<br><\/strong>Yes. In certain years, the CRA applies a seniors\u2019 income threshold, which allows higher eligibility limits.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>7. What happens if my OSTC entitlement is less than $360?<br><\/strong>It will be issued as a lump-sum payment in July instead of monthly installments.<\/p>\n\n\n\n<h5 class=\"wp-block-heading\">Sources<\/h5>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/www.studiotax.ca\/MacHelp\/scr\/How_to_claim_the_Ontario_Energy_and_Property_Tax_Credit.htm#:~:text=Ontario%20sales%20tax%20credit%20(OSTC)&amp;text=You%20must%20be%20a%20resident,entitled%20to%20receive%20the%20credit.\" data-type=\"link\" data-id=\"https:\/\/www.studiotax.ca\/MacHelp\/scr\/How_to_claim_the_Ontario_Energy_and_Property_Tax_Credit.htm#:~:text=Ontario%20sales%20tax%20credit%20(OSTC)&amp;text=You%20must%20be%20a%20resident,entitled%20to%20receive%20the%20credit.\" target=\"_blank\" rel=\"noopener\">Canada Revenue Agency \u2013 Ontario Sales Tax Credit<br><\/a><\/li>\n\n\n\n<li><a href=\"http:\/\/www.ontario.ca\/page\/ontario-trillium-benefit\" data-type=\"link\" data-id=\"http:\/\/www.ontario.ca\/page\/ontario-trillium-benefit\" target=\"_blank\" rel=\"noopener\">Ontario Trillium Benefit \u2013 Government of Canada<\/a><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>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 [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":61,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":134,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[14],"tags":[],"class_list":["post-125","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cra"],"jetpack_featured_media_url":"https:\/\/myinformernews.com\/canada\/wp-content\/uploads\/2025\/08\/CRA-1.jpeg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/myinformernews.com\/canada\/wp-json\/wp\/v2\/posts\/125","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/myinformernews.com\/canada\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/myinformernews.com\/canada\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/myinformernews.com\/canada\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/myinformernews.com\/canada\/wp-json\/wp\/v2\/comments?post=125"}],"version-history":[{"count":1,"href":"https:\/\/myinformernews.com\/canada\/wp-json\/wp\/v2\/posts\/125\/revisions"}],"predecessor-version":[{"id":126,"href":"https:\/\/myinformernews.com\/canada\/wp-json\/wp\/v2\/posts\/125\/revisions\/126"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/myinformernews.com\/canada\/wp-json\/wp\/v2\/media\/61"}],"wp:attachment":[{"href":"https:\/\/myinformernews.com\/canada\/wp-json\/wp\/v2\/media?parent=125"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/myinformernews.com\/canada\/wp-json\/wp\/v2\/categories?post=125"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/myinformernews.com\/canada\/wp-json\/wp\/v2\/tags?post=125"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}