Canada’s $250 Cost-of-Living Boost in August, Check Eligibility Criteria & Payment Schedule

As the cost of living continues to weigh heavily on Canadian households, the federal government is stepping in with a one-time, tax-free \$250 relief payment set to roll out in August 2025. Administered by the Canada Revenue Agency (CRA), this targeted measure is designed to help low- and middle-income Canadians offset everyday expenses — from groceries to utility bills — during a period of sustained inflation.

The best part? No application is required. If you meet the criteria based on your 2024 tax return, the payment will arrive automatically.

A Timely Boost for Millions of Canadians

With inflation rates still above pre-pandemic levels and essentials such as food, rent, and transportation eating up larger portions of household budgets, this \$250 relief measure comes at a critical moment.

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The CRA has confirmed that eligible recipients will not need to apply — payments will be processed automatically using the most recent tax return and banking or mailing details on file.

This ensures fast delivery to those who need it most, without the burden of extra paperwork.

Key Details at a Glance

AspectDetails
Amount\$250 (one-time, tax-free)
Payment WindowAugust 15 – 31, 2025
Income ThresholdTypically under \$65,000; full benefit usually for incomes under \$45,000
EligibilityFiled 2024 tax return, Canadian resident in 2025
Recipient GroupsSeniors (OAS/GIS), single parents, students, low-income workers, people with disabilities
Payment MethodsDirect deposit (1–2 business days) or mailed cheque (5–10 business days)
ApplicationNone — CRA issues automatically if you qualify
ExclusionsNo payment if 2024 taxes unfiled, income exceeds threshold, or account details missing/invalid

Who Qualifies for the \$250 Payment?

Eligibility for this relief boost is based on income, residency, and tax compliance. The CRA will determine your status automatically, using your 2024 income tax return.

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Basic Criteria:

  • Must be a resident of Canada in 2025.
  • Must have filed a 2024 income tax return by the CRA’s deadline.
  • Individual income generally must be below \$65,000, with the full \$250 amount usually for incomes under \$45,000.
  • Must have valid banking or mailing information in your CRA profile.

Groups Most Likely to Qualify:

  • Seniors receiving OAS or GIS benefits.
  • Single parents with dependents.
  • Students in low-income brackets.
  • Low-income workers earning under the threshold.
  • People with disabilities receiving federal or provincial supports.

Who Will Not Receive the Payment?

While the program aims to be inclusive, there are some clear exclusions:

  • Those who did not file a 2024 income tax return.
  • Individuals with incomes above the threshold.
  • People with missing or outdated banking/mailing information in their CRA profile.

Payment Schedule & Delivery Method

The CRA will begin issuing the \$250 payments between August 15 and August 31, 2025.

  • Direct Deposit: If you have direct deposit set up with the CRA, funds should appear within 1–2 business days after release.
  • Cheque by Mail: If you are not enrolled in direct deposit, expect delivery 5–10 business days later, depending on Canada Post service in your area.

Tip: Direct deposit is the fastest and safest option, reducing the risk of lost or delayed payments.

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Steps to Take Now to Ensure You Get Paid

Although no application is required, you must take these steps to avoid delays:

  1. File Your 2024 Tax Return: If you haven’t filed yet, do so immediately.
  2. Check Your CRA My Account: Verify that your banking and mailing information is correct.
  3. Confirm Eligibility: In the “Benefits and Credits” section, see if you fall under the qualifying category.
  4. Stay Alert for Scams: The CRA will never call, email, or text you asking for banking details. Only use the official CRA website for updates.

Why This Relief Payment Matters

While \$250 may not solve long-term financial challenges, it can help cover:

  • Grocery costs for a week or more.
  • A portion of monthly utility bills.
  • Public transit passes or fuel expenses.
  • Unexpected medical or household costs.

In a period where every dollar counts, this automatic, tax-free boost will bring meaningful relief to many households struggling to balance their budgets.

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Comparison to Other Benefits

The \$250 relief boost is separate from other programs such as:

  • Canada Child Benefit (CCB)
  • Old Age Security (OAS)
  • Guaranteed Income Supplement (GIS)
  • GST/HST Credit

Some recipients may qualify for multiple benefits, meaning August could bring more than one deposit into their accounts.

How to Prepare for August 2025 Payments

If you want to ensure you receive this payment without delays, act now:

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  • File your 2024 taxes if not already done.
  • Sign up for CRA direct deposit.
  • Regularly log in to your CRA My Account to check for updates.

Being proactive is the best way to guarantee you don’t miss out on this financial support.

Bottom Line

The CRA’s \$250 August 2025 Relief Boost is a one-time, tax-free payment that will reach millions of eligible Canadians between August 15 and August 31, 2025.

There’s no application process — if you meet the income, residency, and tax filing requirements, the payment will arrive automatically. Direct deposit ensures the fastest delivery.

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In challenging economic times, even a modest payment can help ease the strain of day-to-day expenses, making this initiative a welcome addition to Canada’s social support system.

5 Relevant SEO FAQs

Q1: Do I need to apply for the \$250 relief payment?
No. If you’ve filed your 2024 tax return and meet the criteria, the CRA will issue it automatically.

Q2: When will the \$250 payment be sent?
Between August 15 and August 31, 2025. Direct deposit arrives faster than mailed cheques.

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Q3: Who qualifies for the full \$250?
Individuals earning under \$45,000 typically get the full amount; those under \$65,000 may get partial amounts.

Q4: What if I didn’t file my 2024 taxes?
You won’t receive the payment unless you file your return and meet all eligibility rules.

Q5: Can I receive this payment along with other benefits?
Yes. It is separate from programs like OAS, GIS, GST/HST Credit, and CCB.

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