The Canada Housing Benefit is back for May 2025, offering a one-time, tax-free $500 payment to low-income renters who are struggling with rising housing costs. This direct financial relief is part of ongoing federal efforts to ease the burden of rental expenses for those who need it most.
This benefit is not a monthly payment—it’s a single disbursement aimed at supporting eligible individuals and families with essential living costs related to rent.
Who Qualifies for the $500 Housing Benefit?
To be eligible for the $500 payment in May 2025, applicants must meet several key requirements:
- Be a resident of Canada.
- Be at least 15 years old as of December 1, 2024.
- Have filed a 2023 income tax return.
- Income thresholds:
- Single applicants: Annual adjusted net income must be $20,000 or less.
- Families: Combined adjusted net income must be $35,000 or less.
- Rent paid must be at least 30% of your 2023 income in the 2024 calendar year.
- Primary residence must be in Canada and rented (not owned).
Applicants will also need to provide rent payment details and landlord contact information during the application process.
How to Apply in May 2025
Applying for the Canada Housing Benefit is simple and secure. You can submit your application through the following channels:
- Online Through CRA My Account
- Log in and navigate to the benefits section to find the Canada Housing Benefit form.
- Input your rent and income details.
- Submit your application directly for faster processing.
- By Phone
- Call the Canada Revenue assistance line.
- Answer the identity verification questions.
- Provide your rental details over the phone to complete the process.
- By Web Form
- Use the online web form to manually enter your information and upload supporting documents if needed.
Ensure that all personal and banking information is accurate and up to date before applying to avoid delays.
When Will Payments Be Made?
Payments begin in May 2025 and will be distributed on a rolling basis once applications are approved.
Payment Options:
- Direct Deposit: If you’re already signed up for direct deposit with the CRA, the funds will go straight to your bank account.
- Paper Cheque: If not enrolled in direct deposit, a cheque will be mailed to your registered address.
Processing typically takes 5–10 business days, depending on the method of application and individual circumstances.
Canada Housing Benefit May 2025
| Criteria | Details |
|---|---|
| Payment Amount | $500 (tax-free, one-time) |
| Application Opens | May 2025 |
| Minimum Age | 15 years as of December 1, 2024 |
| Income Limit (Individual) | $20,000 or less |
| Income Limit (Family) | $35,000 or less |
| Rent Requirement | Paid at least 30% of 2023 income |
| Application Methods | Online, phone, or web form |
| Payment Methods | Direct deposit or mailed cheque |
The $500 Canada Housing Benefit is a timely form of financial assistance to help low-income renters manage high living costs in 2025.
With applications opening in May, now is the time to gather your documents, verify your income, and ensure your tax filing is up to date.
Eligible Canadians can apply confidently knowing that this one-time benefit won’t affect other support programs and is completely tax-free.
Don’t delay—check your eligibility, apply quickly, and secure the help you need to stay on top of your rent this year.
FAQs
Is the $500 benefit taxable?
No, the Canada Housing Benefit is completely tax-free and does not need to be reported as income.
Can this payment affect my eligibility for other benefits?
No, it will not impact your eligibility for other federal benefits such as GST credit, child benefits, or seniors’ supplements.
What if I didn’t file my 2023 taxes?
You must file your 2023 return to qualify. File it immediately to avoid missing out on this payment.