The cost of living crisis continues to stretch household budgets across Canada. From rising grocery bills to expensive housing and utilities, families, seniors, and workers are struggling to manage everyday expenses. In response, the federal government has confirmed a $680 one-time payment for eligible Canadians in September 2025.
This measure, delivered by the Canada Revenue Agency (CRA), is designed to provide immediate tax-free relief for low- and middle-income households most impacted by inflation.
Key Features of the $680 Payment
The CRA’s relief package has been structured to be simple and automatic, ensuring that millions of Canadians get the support without additional paperwork.
- Amount: $680 (one-time, non-taxable)
- Payment Date: September 2025
- Delivery: Direct deposit or mailed cheque
- Application: Not required – automatic eligibility check
- Basis of Eligibility: 2024 income tax return
This makes the program one of the most accessible relief measures in recent years, avoiding complex applications or long waiting times.
Who Qualifies for the $680 Support?
Eligibility is tied to income levels and residency. To qualify, Canadians must:
- Be a resident for tax purposes in Canada.
- Have filed their 2024 tax return before the deadline.
- Have a low- to modest-income household, based on thresholds set by the federal government.
- Be among groups most affected by rising costs, such as families, seniors, and low-income workers.
Groups That Will Benefit the Most
The government designed this payment with vulnerable groups in mind:
- Families managing school expenses, food, and rent.
- Seniors on fixed incomes, especially those relying solely on CPP or OAS.
- Low- and middle-income workers trying to balance transport, housing, and utility bills.
- Single parents, who often face disproportionate financial pressures.
How the CRA Will Deliver the $680 Payment
The CRA has confirmed two secure methods of distribution:
Direct Deposit
- The fastest and safest method.
- Funds will go directly to the recipient’s registered bank account.
- Canadians are encouraged to update banking information through CRA MyAccount.
Mailed Cheque
- Sent to the mailing address on file.
- May take longer (5–10 business days).
- Recommended only for those without bank accounts.
Why This Payment Matters in 2025
Although modest, the $680 benefit is significant for households under financial strain. It can help cover:
- Groceries for families dealing with food inflation.
- School supplies and uniforms as children return to school.
- Heating bills or healthcare costs for seniors.
- Rent or transportation costs for workers facing high commuting expenses.
Because it is tax-free and does not affect other entitlements, households will keep the full amount without losing benefits like OAS, GST/HST credits, or the Canada Child Benefit.
Program Highlights at a Glance
| Aspect | Details |
|---|---|
| Payment Confirmation | Yes – confirmed for September 2025 |
| Application Required | No – automatic disbursement |
| Impact on Other Benefits | No effect on OAS, CCB, GST/HST |
| Target Groups | Families, seniors, low- and middle-income Canadians |
| Benefit Type | Tax-free, one-time assistance |
Steps Canadians Should Take Now
To ensure smooth payment delivery, recipients should:
- File 2024 taxes on time – eligibility is based on tax returns.
- Update banking information in CRA MyAccount.
- Opt for direct deposit instead of cheque delivery.
- Verify mailing address to prevent cheque delays.
Broader Context of the $680 Payment
This one-time benefit is part of a wider affordability strategy by the Canadian government. While not a permanent solution, it demonstrates the government’s commitment to targeted relief during periods of inflation.
Using the CRA as the distribution channel ensures efficiency and fairness, with payments automatically directed to those most in need.
FAQs
Q1: When will the $680 payment be made?
Payments will begin in September 2025, with direct deposits arriving first and mailed cheques following within 5–10 business days.
Q2: Do I need to apply for the $680 benefit?
No. The payment is automatic, based on your 2024 income tax return.
Q3: Is the $680 payment taxable?
No. The benefit is tax-free and does not affect other CRA benefits.
Q4: Will the $680 payment reduce my CCB, OAS, or GST/HST credits?
No. It is a standalone support measure and will not reduce any other federal or provincial benefits.
Q5: Who will benefit the most from this one-time relief?
Families, seniors, low- to middle-income workers, and single parents are among those expected to benefit most from the payment.
