The federal government has announced a new financial support program as Canadians face higher costs for groceries housing, utilities and everyday expenses. The CRA will send $670 relief payments to millions of eligible Canadians beginning in mid-December 2025. Finance Minister Chrystia Freeland revealed the payment earlier this fall in Ottawa as part of the government’s broader Affordability Support Initiative. The benefit is a one-time non-taxable payment designed for low- and moderate-income Canadians. The CRA will issue it automatically based on information from 2024 income tax returns.
December 2025 Confirmed: CRA Rolls Out $670 Federal Credit for Canadians
The announcement arrives as Canadian families continue to face financial pressure. Statistics Canada reports that inflation stayed near 4.2% in late 2025 because of increases in food costs and energy bills and housing expenses.
SASSA's R370 Christmas Grant: Early Payment Alert for December 23rd - Check Your Bank Notifications!
– Grocery prices increased 6.1% compared to the previous year.
– Average rent for a two-bedroom apartment went above $2200 monthly in large cities according to the CMHC 2025 Housing Market Report.
Singapore Confirms Updated CDC Voucher Rules — Households Must Redeem Full S$800 Amount by 20 Dec
The Parliamentary Budget Officer estimates that nearly 10 million Canadians belong to income groups most affected by inflation shocks. The CRA $670 relief payment aims to provide temporary financial help while the government develops longer-term affordability plans for 2026. Dr. Andrew Sharpe from the Centre for the Study of Living Standards stated that this payment will not solve inflation but it helps stop vulnerable Canadians from falling further behind during winter months.
Who Qualifies for the CRA $670 Credit in December 2025?
The Canada Revenue Agency (CRA) has officially stated that there is no need to apply for this benefit. Eligibility will be automatically determined using information from your 2024 tax return.
Income Eligibility Criteria
| Category | Eligibility Requirement | Maximum Income Limit |
|---|---|---|
| Single Individuals | Must have filed a 2024 tax return | $45,000 or below |
| Couples (Combined Income) | Filed a joint 2024 tax return | $65,000 or below |
| Seniors (Age 65+) | Currently receiving OAS or GIS | $50,000 or below |
| Parents with Children | Eligible for Canada Child Benefit (CCB) | $70,000 or below |
Income Thresholds Explained: CRA Eligibility Breakdown Table
Although the announced relief amount is $670, the actual payment each household receives depends on income level and family size.
Estimated CRA Payment Breakdown
| Recipient Category | Estimated Amount | Details |
|---|---|---|
| Single Individuals | $450 – $670 | Amount varies based on income |
| Couples (No Children) | Up to $900 (combined) | Calculated on joint household income |
| Families With Children | $670 + $150 per child | Child amount linked to CCB records |
| Seniors (OAS Recipients) | $670 (flat rate) | GIS top-up may increase total |
Important: This CRA relief payment is non-taxable. It will not affect eligibility or reduce payments for benefits such as OAS, GIS, CCB, or Climate Action Incentive.
CRA $670 Credit Amount Explained: How Much Will You Receive?
The Canada Revenue Agency (CRA) has officially announced the December 2025 benefit payment timeline. Below is the updated schedule with revised wording for clarity.
| Payment Method | Date | Important Information |
|---|---|---|
| Direct Deposit | 15 December 2025 | Funds will show in your bank statement as “CRA Benefit Payment” |
| Paper Cheque | 22 December 2025 | Mail delivery can take up to 10 business days depending on location |
| Missing Payment Requests | 15 January 2026 | CRA will begin processing replacement payments from this date |
Canadians who are registered for CRA My Account can check their payment status, verify direct deposit details, and update banking information online at any time.
Estimated $670 Credit Split: Household and Income-Based Breakdown
While economists generally approve of the measure some warn against depending too much on repeated cash payments. Dr. Amanda Roach from the University of Ottawa stated that targeted transfers work well during times of economic stress but should not take the place of long-term affordability reforms. Finance Minister Freeland responded to these concerns by clarifying that the CRA $670 payment is fiscally neutral and comes from existing departmental surpluses. She explained that this is not new borrowing but rather a reallocation of available resources to provide timely help.
CRA December 2025 Payment Schedule: Exact Dates to Watch
The 2025 CRA relief payment continues the federal government’s efforts to ease cost-of-living pressures, building on affordability programs introduced over the past few years.
| 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 | Automatic, broader coverage |
What sets the 2025 CRA relief payment apart is its streamlined approach. Instead of multiple applications or separate credits, support is delivered through a single automatic payment, making it simpler and faster for eligible Canadians to receive assistance.
Policy Experts React: Short-Term Relief vs Long-Term Solutions
– Federal projections show the largest impact among single-income households dealing with rent or mortgage stress.
– Seniors on fixed incomes facing higher utility bills will also feel significant effects.
– Rural Canadians coping with rising food & transportation costs represent another affected group.
– Low-wage workers whose earnings failed to keep pace with inflation round out the most impacted populations.
– The Canadian Centre for Policy Alternatives estimates the payment will reach around 80% of low-income Canadians.
Advocates continue to call for deeper reforms despite this coverage rate.
CRA $670 Credit vs Previous Federal Benefits: Key Differences
– Canadians can check if they qualify or track their payment status using these methods:
– CRA My Account allows you to see scheduled payments in the Payments area.
– You can also set up or change your direct deposit information by logging into your account before December 10 2025.
If you need help you can call the CRA Helpline at 1-800-959-8281 between 8 a.m. and 8 p.m. from Monday through Friday. If you submitted your 2024 tax return after the deadline your payment might not arrive until January 2026 because the CRA needs extra time to review your information.
Public Reaction to the $670 CRA Credit: Support With Concerns
Public reaction has shown cautious optimism. A Leger poll from December 2025 revealed some interesting findings.
– The survey showed that 72% of Canadians support the one-time CRA payment.
– However only 38% believe this payment will significantly improve their financial situation.
Most Canadians appreciate the support but remain worried about continuing inflation pressures.
