As inflation continues to strain household budgets, the Canada Revenue Agency (CRA) has announced a one-time, tax-free $250 relief payment set to be delivered in August 2025. Designed to support low- and middle-income Canadians—especially seniors— this automatic deposit comes with no application required and no impact on other federal benefits.
The payment provides quick, direct financial assistance during a time when rising grocery, utility, and healthcare costs are hitting vulnerable households the hardest.
What Is the CRA $250 Relief Payment?
The CRA $250 August 2025 boost is a tax-free, one-time payment that will be issued automatically to eligible individuals. It is not tied to any single benefit program, but rather, it’s a special targeted measure introduced by the federal government to:
- Provide urgent financial support
- Help low-income seniors and households navigate inflation
- Supplement, without reducing, existing benefits such as OAS, GIS, CPP, or GST/HST credits
This payment will be made separately from all other monthly or quarterly benefits, such as the Old Age Security (OAS), Guaranteed Income Supplement (GIS), or the recent Working Canadians Rebate.
Who Is Eligible for the $250 August 2025 Payment?
To qualify for this CRA relief payment, individuals must meet all of the following criteria:
Eligibility Requirement | Details |
---|---|
Age | 65 or older as of July 1, 2025 |
Income Threshold (2024) | Less than $25,000 individually or $40,000 as a couple |
Benefit Enrollment | Must be receiving OAS, GIS, or a similar federal benefit |
Tax Filing Status | Must have filed a 2024 tax return by June 30, 2025 |
CRA Matching Criteria | Eligibility validated through CRA tax and benefit data, including GST/HST credit records |
If you meet these qualifications, the $250 will be issued to you automatically—no application is needed.
Payment Timeline: When and How You’ll Receive It
The CRA has confirmed the payment window for the $250 boost is scheduled between August 8 and August 15, 2025. Here’s how distribution will work:
- Direct deposit recipients can expect to see the “CRA $250 Benefit” in their accounts during this period
- Paper cheques will begin arriving by mid-to-late August, depending on postal service delays
To avoid delays or misdirected payments:
- Ensure your banking information is up to date in your CRA My Account
- Verify your mailing address if you receive benefits by cheque
- Make any necessary updates before the end of July 2025
How Does the CRA Decide Who Gets the Payment?
The CRA will use your 2024 tax return and existing benefit records to determine eligibility. This includes:
- Matching your income data to the required thresholds
- Confirming your age and benefit enrollment
- Cross-referencing information with GST/HST credit files, which are already used to issue other payments
If you’ve filed your 2024 taxes on time and are receiving federal support, your eligibility will be automatically processed, and payment will be issued with no paperwork involved.
Why This One-Time Boost Matters
This $250 tax-free payment is a timely support measure aimed at easing financial pressures for households that rely heavily on fixed incomes. Here’s why it’s important:
- Helps cover immediate costs like groceries, medications, utilities, and basic living needs
- Targets the most vulnerable, including seniors and those on limited retirement income
- Does not affect existing benefit amounts, meaning there’s no clawback from OAS, CPP, GIS, or the GST/HST credit
- Quick and hassle-free, with CRA handling all the processing using already available tax data
With prices still rising, this small but significant support could provide much-needed relief at a critical time of year.
How It Relates to Other Benefits
Earlier in 2025, the federal government introduced the Working Canadians Rebate, which benefited 18.7 million low- and middle-income individuals. While that program had broader eligibility, the August $250 boost is specifically targeted at vulnerable populations, particularly:
- Seniors aged 65 and above
- Low-income couples and individuals
- Recipients of income-based benefits
Unlike other payments, the $250 relief:
- Requires no reapplication
- Will not appear on your tax return
- Will not reduce or offset other income-tested supports
It functions as a supplementary financial boost, acting independently from your primary income or benefit stream.
What You Need to Do Now
To ensure smooth delivery of your $250 CRA relief payment, follow these simple steps:
- File your 2024 tax return
- Must be submitted by June 30, 2025 to qualify
- Check and update CRA My Account
- Confirm your banking details or mailing address
- Verify benefit enrollment
- Ensure you’re receiving OAS, GIS, or other income-tested benefits
- Look for the payment
- Expect direct deposits between August 8–15, 2025
- Watch for cheques by late August if not using direct deposit
No further steps or applications are required.
What the Label Will Look Like
When the payment lands in your account, it will appear with the label:
“CRA $250 Benefit”
This ensures easy identification. It’s not taxable and does not need to be reported on your 2025 income return. Treat it like a government rebate—yours to use without penalty or adjustment.
FAQs
Q1. Who qualifies for the CRA $250 payment?
Seniors aged 65 or older by July 1, 2025, with 2024 income below $25,000 (individual) or $40,000 (couple), and who are receiving benefits like OAS or GIS.
Q2. Do I need to apply to receive this payment?
No. The payment is automatic, provided you’ve filed your 2024 tax return by June 30, 2025.
Q3. When will I receive it?
Direct deposit payments will arrive between August 8–15, 2025. Cheques will be mailed by late August.
Q4. Will it impact my current benefits?
No. This payment is tax-free and will not affect your OAS, CPP, GIS, or GST/HST credit amounts.
Q5. How can I check if my details are up to date?
Log in to your CRA My Account to update banking or address information.