With rent prices climbing across Canadian cities, the federal government has officially confirmed the $1,200 CRA Housing Top-Up to be issued in October 2025.
Administered by the Canada Revenue Agency (CRA), this one-time, tax-free payment will provide relief to low-income renters struggling with housing affordability.
If you’re spending a large portion of your income on rent, this benefit could significantly ease your financial burden.
What Is the $1,200 CRA Housing Top-Up?
The $1,200 housing benefit is part of Canada’s Low-Income Rent Benefit strategy, aiming to support vulnerable renters across the country. The payment is:
- Tax-free
- Non-repayable
- Available in October 2025
- Automatically issued to past recipients
- Application-based for new claimants
This initiative complements broader federal efforts to expand affordable housing and address rental inflation in major cities like Toronto, Vancouver, and Montreal.
Eligibility Criteria for the $1,200 Rent Relief
To receive the October 2025 housing benefit, you must:
- Be a Canadian resident as of October 1, 2025
- Be 15 years or older at the time of application
- Have filed your 2024 income tax return
- Have net income under:
- $35,000 (single adult)
- $55,000 (family household)
- Have spent at least 30% of your income on rent over the past 6 months
- Be able to provide proof of rent (receipts, lease, or bank statements)
The CRA will cross-check your income and rental data using automated tools linked to your tax file.
Income and Rent Thresholds to Qualify
| Household Type | Income Limit (2024) | Rent Must Be ≥ (% of Income) |
|---|---|---|
| Single Adult | $35,000 | 30% |
| Single Parent | $45,000 | 30% |
| Couple (No Children) | $50,000 | 30% |
| Family with Children | $55,000 | 30% |
Renters must show they’ve consistently paid rent meeting or exceeding these thresholds over the previous six months.
When Will the $1,200 Payment Be Made?
- Payment Start Date: October 15, 2025
- Distribution Method: Direct deposit or cheque
- Payment Label: “CRA Housing Top-Up”
If you received rental aid previously and your CRA profile is up to date, you will be paid automatically. New applicants must apply via CRA MyAccount.
Documents Needed to Apply (New Applicants Only)
- Digital lease agreement or rental contract
- Rent receipts or bank statements showing six months of payments
- Tax return proof confirming income from 2024
- Updated contact information in CRA MyAccount
Ensure all documents are accurate—errors or omissions may cause delays or rejection.
How This Benefit Helps Canadian Renters
The $1,200 payment offers vital support during the fall and winter, especially as:
- Heating bills rise
- Rental arrears build up
- Household budgets are stretched by inflation
For renters paying over $2,000 per month, this top-up could cover over half a month’s rent, or help clear past-due balances.
Is the $1,200 Top-Up Taxable?
No, the payment is completely tax-free. It will not affect other federal benefits such as:
- GST/HST credit
- Canada Child Benefit (CCB)
- Old Age Security (OAS)
- Guaranteed Income Supplement (GIS)
The CRA $1,200 Housing Top-Up set for October 2025 is a much-needed measure for thousands of low-income Canadian renters. Whether you live in a city with skyrocketing rents or you’re simply struggling to make ends meet, this tax-free benefit can provide meaningful financial relief.
To ensure your payment is on time, make sure your CRA profile is current, and file your 2024 tax return. If you’re a new applicant, apply early through CRA MyAccount to avoid delays.
FAQs
Who qualifies for the $1,200 housing top-up?
Low-income renters earning under $35,000 (single) or $55,000 (family) who spend more than 30% of their income on rent and have filed a 2024 tax return.
Do I need to apply for the payment?
If you’ve received rental aid before and your CRA profile is current, no application is needed. Others must apply via CRA MyAccount.
Is the $1,200 payment taxable or will it affect other benefits?
No. It is non-taxable and will not impact other government benefits or CRA-administered programs.