The Canada Revenue Agency (CRA) has confirmed a special $1,200 tax-free payment for low-income seniors in 2025. This one-time support is part of the government’s continued effort to combat the rising cost of living, especially for vulnerable groups like older adults who rely on fixed incomes.
The payment will offer immediate relief for essentials such as food, rent, and medication. This $1,200 benefit will be issued under the Guaranteed Income Supplement (GIS) top-up and CRA-administered special programs targeting those most affected by inflation and income instability.
Who Is Eligible for the $1,200 CRA Payment?
The payment is directed at seniors who meet the following criteria:
- Aged 65 or older by June 30, 2025
- Receive the Old Age Security (OAS) pension
- Eligible for the Guaranteed Income Supplement (GIS)
- Annual individual income of less than $21,624 (or household income thresholds based on CRA guidelines)
- Filed a 2024 income tax return before the May 1, 2025 deadline
Eligibility is automatically determined based on tax filings and GIS/OAS status, meaning no separate application is required for most recipients. Seniors not yet enrolled in GIS must apply through Service Canada to access the full benefit.
CRA $1,200 Payment – Summary Table
| Category | Details |
|---|---|
| Payment Amount | $1,200 (one-time) |
| Payment Date | Starting July 26, 2025 |
| Who Qualifies | OAS + GIS recipients with low income |
| Income Threshold (Individual) | Below $21,624 |
| Application Required? | No, automatic if tax return filed |
| How Paid | Direct deposit or cheque via CRA |
| Administered By | CRA (with data from Service Canada) |
When and How the Payment Will Be Delivered
The CRA will begin disbursing the $1,200 payments from July 26, 2025, either by direct deposit or paper cheque, depending on how the recipient usually receives OAS and GIS. It will appear as “CRA Benefit Payment” in bank statements or cheque descriptions.
Seniors should ensure their banking information is up to date in their CRA My Account to avoid delays. Those who qualify but have not received their payment by August 15 will be able to contact the CRA for review.
No Application Necessary, But Tax Filing Is Essential
The most critical requirement is timely tax filing. Seniors who missed the May 1, 2025 tax return deadline may still qualify for retroactive payments if they file shortly after and meet eligibility. It is also advised to ensure enrollment in direct deposit to receive the benefit faster and more securely.
The $1,200 payment is non-taxable and does not affect eligibility for other federal or provincial benefits like Canada Housing Benefit or provincial drug plans.