CRA $670 Relief Payment Coming in December 2025 The federal government has announced a new round of financial support for Canadians struggling with rising costs. With prices increasing for groceries, housing, utilities and other essential items millions of people across the country will receive a $670 payment from the Canada Revenue Agency starting in mid-December 2025.
The Finance Minister Chrystia Freeland announced the payment earlier this fall in Ottawa. It is part of the government’s broader Affordability Support Initiative. The payment is a one-time benefit that is not taxable & comes from the CRA. It goes to eligible Canadians with low and moderate incomes. The government will send it automatically based on 2024 income tax information.
December 2025 $670 Federal Credit: Major CRA Support for Canadian Households
Household Budgets Face Continued Pressure The announcement arrives as families continue to struggle with tight finances. Statistics Canada reported that inflation stayed near 4.2% in late 2025. This increase came mainly from rising prices in food energy and housing expenses. Many households are finding it harder to make ends meet as these essential costs take up larger portions of their monthly budgets. The persistent inflation rate shows that economic pressures remain a significant challenge for Canadian families trying to manage their everyday spending.
– Grocery costs increased by 6.1% compared to last year.
Canada Lines Up 6 CRA Payments Before Christmas 2025 - Revised Deposit Dates and Updated Timelines
– In major cities, the average monthly rent for a two-bedroom apartment crossed $2,200, according to CMHC’s 2025 Housing Market Report.
The Parliamentary Budget Officer estimates that nearly 10 million Canadians belong to income groups that are most vulnerable to inflation shocks. The CRA $670 relief payment aims to provide temporary financial assistance while the government develops long-term affordability strategies for implementation in 2026.
Who Qualifies for the CRA $670 Inflation Relief Credit in 2025?
The Canada Revenue Agency has stated that people do not need to submit an application. The agency will determine who qualifies by reviewing the tax returns filed for 2024.
| Category | Eligibility Condition | Maximum Income |
|---|---|---|
| Single individuals | Filed 2024 tax return | $45,000 or less |
| Couples (combined) | Filed joint return | $65,000 or less |
| Seniors (65+) | Receiving OAS or GIS | $50,000 or less |
| Parents with children | Eligible for CCB | $70,000 or less |
Payment Methods The government will send payments through the same system used for current CRA benefits like the GST/HST Credit or Canada Workers Benefit. If you have direct deposit set up:Your payment will arrive automatically in your bank account.
– If you do not have direct deposit: You will receive a paper cheque in the mail.
– All cheques will be sent out before December 22 2025.
Breaking Down the $670 CRA Credit Amount and What It Covers
The headline figure shows $670 but the actual payment amount varies based on how much money your household earns and how many people live in your family.
| Recipient Type | Expected Amount | Notes |
|---|---|---|
| Single individuals | $450–$670 | Income-tested |
| Couples (no children) | Up to $900 combined | Based on joint income |
| Families with children | $670 + $150 per child | Linked to CCB |
| Seniors (OAS recipients) | $670 flat | GIS top-ups may apply |
The CRA relief payment is not taxable. This payment will not affect your eligibility for other benefits including OAS, GIS CCB, or Climate Action Incentive payments.
CRA $670 Payment Timeline: Expected Deposit Dates Explained
CRA December 2025 Payment Schedule Released The Canada Revenue Agency has published the official payment schedule for December 2025.
| Payment Method | Date | Details |
|---|---|---|
| Direct deposit | December 15, 2025 | Appears as “CRA Benefit Payment” |
| Paper cheque | December 22, 2025 | Delivery may take up to 10 business days |
| Missing payment requests | January 15, 2026 | Replacement processing begins |
Checking Your CRA Payment Status Online Canadians who have registered for CRA My Account can easily check their payment status through the online portal.
Experts Weigh In: Short-Term Inflation Relief vs Long-Term Solutions
Although many economists welcome the initiative, several experts warn against excessive dependence on recurring cash assistance.
“Focused financial support is effective during economic downturns, but it should not substitute sustainable affordability solutions,”
— Dr. Amanda Roach, University of Ottawa
Responding to these concerns, Finance Minister Chrystia Freeland clarified that the CRA’s $670 payment does not add fiscal pressure and is financed through unused departmental funds.
“This measure involves no additional borrowing. It simply redirects existing resources to provide immediate relief,” she stated.
How the 2025 $670 CRA Credit Differs From Previous Federal Benefits
The 2025 Relief Payment Builds on Previous Federal Affordability Measures The 2025 relief payment represents a continuation of federal efforts to address affordability challenges facing Americans.
| Program | Year | Average Amount | Target Group |
|---|---|---|---|
| GST Rebate Boost | 2022 | $467 | Low-income Canadians |
| Grocery Rebate | 2023 | $400 | Individuals and families |
| Canada Affordability Credit | 2024 | $800 | Middle-income households |
| CRA Relief Payment | 2025 | $670 | Broader, automatic coverage |
The 2025 CRA relief payment differs from previous programs by combining all support into one automatic transfer. This approach makes the system simpler and reduces the amount of administrative work required.
Low- and Middle-Income Canadians: Who Gains the Most From This Credit?
Federal forecasts highlight that the greatest effects are expected to be felt by:
– Single-earner households struggling with rising rent or mortgage pressures
– Seniors living on fixed incomes as utility expenses continue to climb
– Rural Canadians facing higher food prices and increased transportation costs
– Low-income workers whose wages have not matched the pace of inflation
The Canadian Centre for Policy Alternatives (CCPA) estimates the payment will reach about 80% of low-income Canadians. However advocates keep pushing for more significant reforms.
Step-by-Step Guide to Checking Your CRA $670 Payment Status
Canadians can check their eligibility status or track payment updates using the following options:
– CRA My Account: Log in to review scheduled or pending payments in the “Payments” tab
– Direct Deposit Settings: Ensure your bank information is updated no later than December 10, 2025
– CRA Support Line: Call 1-800-959-8281, available Monday to Friday from 8 a.m. to 8 p.m.
Applicants who submitted their 2024 tax returns late may experience payment delays, with processing potentially extending into January 2026 while verification is completed.
Public Reaction Across Canada: Relief Welcomed, Concerns Remain
Public response has been measured but generally positive. A Leger survey conducted in December 2025 revealed that 72% of Canadians approve of the one-time CRA payment. However, only 38% feel it will make a meaningful difference to their overall financial situation. While many Canadians appreciate the added support, concerns remain about the continued impact of rising inflation.
