Guaranteed Income Supplement in Canada

According to Canada.ca, over 1.9 million Canadian seniors relied on the Guaranteed Income Supplement (GIS) as a critical source of financial support from 2017 to 2018 (Source).

With nearly 20% of Canadians aged 65 and over living below the poverty line, government benefits like the GIS are essential to providing a basic standard of living across the country.

Our guide explains everything you need to know about the GIS in detail, from understanding eligibility and payment amounts to navigating the application process and reporting requirements.

What is the Guaranteed Income Supplement?

The Guaranteed Income Supplement is a monthly, non-taxable benefit administered by Employment and Social Development Canada (ESDC) – a department of the federal government. It was introduced as a complement to the Old Age Security (OAS) pension to provide further income support to low-income seniors in Canada.

Unlike OAS, the GIS is not based on your work history or contributions made. It serves to top up the basic OAS pension for retirement-age Canadians who do not have sufficient income from other sources to cover their necessary living expenses.

The benefit adjusts quarterly based on inflation. When living costs rise, so do GIS payments. However, payments never decrease if inflation falls. This protection matters because seniors on fixed incomes face particular vulnerability to rising prices.

Am I Eligible to Receive the Guaranteed Income Supplement?

To qualify for GIS benefits, you must meet each of the eligibility criteria set forth by the federal government. These include:

• Age: You must be 65 years of age or older, as the GIS is available only to seniors.
• Citizenship and Residency: You must be a Canadian citizen or legal resident currently living in Canada. Months spent abroad can affect eligibility if exceeding six consecutive months.
• OAS Pension: You must be receiving the standard Old Age Security pension. The GIS is intended to supplement OAS, so you cannot collect GIS without an active OAS benefit.
• Income Level: Your individual or combined household income must fall below the annual eligibility thresholds based on marital status. Higher income results in reduced GIS payment amounts.
• Minimum Residency: You must have lived in Canada for at least 10 years after turning 18. The GIS eligibility and payment amounts are prorated based on your time spent as a Canadian resident. For immigrants, you may meet additional criteria related to sponsorship status and time spent physically residing in Canada. So please contact ESDC to have your unique situation assessed.

These eligibility rules help the government ensure that GIS support goes to those who need it most. If you do not meet even one of these requirements, you may not be eligible to receive GIS benefits.

How Much Could I Potentially Receive from the GIS?

Your specific GIS payment will be calculated based on where your total household income falls within the minimum and maximum thresholds for your marital status. It’s then added to your monthly OAS amount and issued as a single combined payment.

The federal government adjusts the minimum and maximum GIS thresholds quarterly in January, April, July, and October based on increases to the Consumer Price Index.

Here are the current maximum monthly GIS payment amounts from July 2025 to September 2025 (Source):

What income affects GIS payments?

The income thresholds used to determine your eligibility take into account various sources, including other pensions, investments, rental income, and employment earnings. These are typically earnings or benefits that reflect your financial capacity. Here’s what’s counted:

• CPP or QPP retirement pensions
• RRSP withdrawals and RRIF payments
• Workplace pension and foreign pensions.
• Employment Insurance (EI) benefits
• Investment income (interest, dividends, etc.)
• Rental property income
• Self-employment income

Your OAS pension doesn’t count as income for GIS purposes. Neither do GIS payments themselves, the Allowance, nor the Allowance for the Survivor. Provincial social assistance generally doesn’t affect GIS either.

The first $5,000 doesn’t affect GIS at all. Between $5,000 and $15,000, each dollar reduces GIS by 50 cents. This structure means that working always improves your total income.

When Should I Expect My GIS Payment?

If you are eligible for the Guaranteed Income Supplement, you will receive your first monthly payment on the day after you turn 65 years old. This will be combined with your OAS amount and deposited directly into your bank account or sent by cheque in the mail.

Going forward, you can expect to receive your GIS payments on the same OAS payment dates. The GIS payment dates for 2025 are as follows:

• January 29, 2025
• February 26, 2025
• March 27, 2025
• April 28, 2025
• May 28, 2025
• June 26, 2025
• July 29, 2025
• August 27, 2025
• September 25, 2025
• October 29, 2025
• November 26, 2025
• December 22, 2025

It is essential that you file your annual tax return by the deadline each year to avoid any disruption in your GIS payments.

How Do I Apply for the Guaranteed Income Supplement?

Most seniors will receive automatic enrollment for GIS, so the application process is not required in most cases. Service Canada sends a letter the month after you turn 64, explaining when payments begin. If your income qualifies and you receive OAS, GIS typically starts without any effort.

However, exceptions exist. You must apply manually in certain situations:

• You received OAS but never received GIS
• Your enrollment letter contains errors
• The letter specifically requests an application
• Your income recently decreased below the thresholds

Required information includes your Social Insurance Number, banking details, spousal information, and residence history since age 18. So make sure you gather these documents beforehand, as it speeds processing.

You can submit your application securely online through your MyServiceCanada account. Alternatively, you can print and mail an application form to Service Canada by post.

When Do I Need to Report Changes to Service Canada?

It’s important to notify Service Canada promptly anytime there are changes in your living situation that could impact your eligibility for GIS or the amount you receive.

Five common situations that require updates include:

• Temporary absence from Canada: Leaving the country for over six consecutive months can affect eligibility.
• Change in total household income: Higher or lower income could increase or reduce GIS payments.
• Marital status change: Marriage, common-law, separation, divorce, or death of a spouse.
• Long-term care admission: Moving to a nursing home, hospice, or hospital long-term care ward.
• Incarceration: Imprisonment in a federal correctional facility for longer than 90 days.

By reporting changes in all the above cases, you can continue to receive the correct payment amounts and avoid having to repay any overpaid GIS benefits.

Do I Need to Pay Tax on GIS Benefits?

The good news is that Guaranteed Income Supplement payments are completely non-taxable, so you do not pay any income tax on the GIS money you receive from the federal government.

However, even though the GIS itself is not taxed, you must still report your total GIS amount for the year on your personal income tax return.

This allows the CRA to determine whether you remain eligible for income-tested credits and benefits. Failing to report GIS earnings can lead to issues with your tax assessment.

What Other Financial Aid is Available?

In addition to the Guaranteed Income Supplement, other allowances exist to support low-income Canadians aged 60-64 who have spouses collecting the GIS or Old Age Security pension:

• Allowance: For 60 to 64-year-olds whose spouse or common-law partner is a Guaranteed Income Supplement recipient.
• Allowance for Survivors: For 60 to 64-year-old widows or widowers whose spouse was receiving the GIS at the time of death.

These Allowances can provide up to $1,381.90 per month—or up to $1,614.89 per month if you’re a surviving spouse—depending on your household income (Source). The eligibility requirements are similar to those of the GIS, except for the minimum age cutoff.

How Can I Maximize My Retirement Income?

While the Guaranteed Income Supplement provides a baseline level of financial support, relying solely on GIS later in life can be extremely limiting. The maximum monthly payment for an individual is hardly enough to maintain a comfortable standard of living.

To maximize your retirement income, it’s essential to leverage all possible sources available to you. See our suggestion below:

• Canada Pension Plan (CPP): The CPP retirement pension you receive depends on how much and for how long you contributed during your working career.
• Old Age Security (OAS) Pension: The OAS provides up to $727.67 per month based on how long you’ve lived in Canada since age 18.
• Employer Pension Plans: Any defined benefit or defined contribution workplace pension plans you’ve participated in.
• Private Retirement Savings: Personal investments like RRSPs, TFSAs, annuities, and taxable investment accounts.
• Reverse Mortgages: Unlocking home equity through products like the Reverse Mortgage allows seniors to access tax-free funds.

So, you should speak with a certified financial planner or retirement planning advisor to help you optimize your stable monthly cash flow by effectively using all available income sources.

The bottom line

The Guaranteed Income Supplement offers a crucial source of support for low-income seniors across Canada.

The GIS provides a baseline level of assistance, but working with financial experts and leveraging alternative options can help you truly make the most of this phase of life.

Stay up-to-date on GIS requirements, seek guidance when needed, and maintain an openness to new opportunities. With the right support in place, the road ahead looks bright.

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