With inflation continuing to drive up the cost of groceries, housing, and prescriptions, the Canadian government is stepping in with targeted relief. This August, a one-time $250 tax-free payment will be issued to low-income seniors and vulnerable individuals to help offset immediate living expenses.
Unlike other benefit programs, this relief is automatic—no application is required. Eligible individuals will receive the payment directly through the Canada Revenue Agency (CRA) between August 8 and August 15, 2025.
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What Is the $250 Relief Payment?
The $250 CRA payment is a one-time, tax-free financial support measure announced for August 2025. Its purpose is to help low-income seniors and other vulnerable groups deal with increased living costs brought on by inflation and economic uncertainty.
This payment will be issued alongside existing benefits such as:
- Old Age Security (OAS)
- Guaranteed Income Supplement (GIS)
- Canada Pension Plan (CPP)
Importantly, this relief will not reduce or interfere with those regular payments.
Who Is Eligible?
To qualify, you must meet all of the following criteria:
| Eligibility Criteria | Details |
|---|---|
| Age | Must be 65 or older as of August 2025 |
| Income | Net income must be below $25,000 for individuals or below $40,000 for couples (as reported on your 2024 tax return) |
| Residency | Must be a resident of Canada |
| Filing Requirement | Must have filed your 2024 income taxes by June 30, 2025 |
Even if you’re already receiving OAS or GIS, this payment will not require a separate application.
How and When Will It Be Paid?
The CRA will automatically issue the $250 to eligible recipients via:
- Direct Deposit (if your banking info is on file)
- Mailed Cheque (if no direct deposit is set up)
Payment Window:
Between August 8 and August 15, 2025
To avoid delays, log in to your CRA My Account and make sure your banking details and mailing address are up to date by July 31, 2025.
Why Is This Payment Being Offered?
This payment is a short-term solution to provide extra help for Canadians most affected by:
- High grocery prices
- Prescription and medical costs
- Utility bills
- General inflation pressures
While not a permanent program, it complements broader social safety net efforts aimed at stabilizing household finances during uncertain times.
Will This Affect My Other Benefits?
No. The $250 relief payment is non-taxable and will not impact any of your current government benefits, including:
- OAS
- GIS
- CPP
- Provincial/territorial assistance programs
You can continue receiving those benefits in full without any deductions due to this payment.
FAQs
Do I need to apply for the $250 relief payment?
No. The CRA will automatically determine eligibility based on your 2024 tax return and benefit status.
When will I get paid?
Between August 8–15, 2025, depending on whether you receive direct deposit or a cheque.
Will this count as taxable income?
No. The $250 payment is tax-free.
