Grocery Rebate in Canada

The federal government of Canada issued a one-time grocery rebate. This rebate payment went out to qualifying Canadians on July 5, 2023. The motivation behind the rebate is to alleviate the high inflation the country has been facing nationwide. An estimated 11 million Canadians qualified for this one-time grocery rebate.

grocery rebate

Did you find an unexpected deposit in your bank account near the beginning of July? If so, it might have been the grocery rebate. Learn more about what it is in this article.

If you have been hit hard by inflation, read Surviving Inflation: Top 7 Tips.

What is the grocery rebate in Canada for 2023?

The grocery rebate is a one-time rebate managed and issued by the Canada Revenue Agency (CRA). The payments dispersed on July 5, 2023. This happens to be the same day as quarterly GST/HST credit payments.

The federal government has been talking about relief for the high costs of groceries. This conversation has been happening for quite some time. The grocery rebate was included as a part of the 2023 federal budget, with the legislation formally passed in May 2023. Driven by historically high inflation, the measure is in place to help Canadians. More specifically, Canadians hardest hit by the rising cost of living.

In total, the government released $2.5 billion dollars on July 5. This is aiding approximately 11 million eligible Canadians. The benefit was designed to help Canadians with food-related inflation costs. However, the money can be used as each recipient sees fit.

Related Reading: Best Cash Back Credit Cards in Canada

When does the grocery rebate start?

There is no start date for the grocery rebate. Rather, the grocery rebate is a one-time payment. Canadians received the rebate on July 5, 2023. At this time, there is no indication that the rebate will continue into the future. Inflation appears to have stopped rising as quickly as it has in past months or even years. This slowdown in inflation is providing some additional relief.

When to expect the grocery rebate payment

The grocery rebate payments dispersed on July 5, 2023. Meaning, qualifying Canadians already received their payment. To receive the rebate, you must have filed your 2021 taxes. The CRA determines eligibility based on the information provided in your tax return. The rebate was anticipated to be almost double the normal quarterly GST/HST credit payment. Although, the exact amount depends on individual circumstances. Family size, marital status, and having dependents are factors. All these factors affect the total amount each Canadian is eligible for.

Some Canadians may be receiving the grocery rebate but not the GST/HST credit payment. The grocery rebate is based on 2021 taxes. Whereas the GST/HST payment is based on your annual tax return since it’s a recurring payment. Individuals may have different incomes for each tax year. Different incomes would qualify them for different benefits.

How much money to expect from the grocery rebate

Each qualified Canadian received a different amount for the grocery rebate. Family size, marital status, and having dependents are the various factors. All these factors affect the total amount each Canadian is eligible for. Canadians could have received payments up to a maximum of $628. Below are the amounts for various scenarios:

Single Canadians

  • $234 (no children)
  • $387 (with 1 child)
  • $467 (with 2 children)
  • $548 (with 3 children)
  • $628 (with 4 children)

Married or Common Law Households

  • $306 (no children)
  • $387 (with 1 child)
  • $467 (with 2 children)
  • $548 (with 3 children)
  • $628 (with 4 children)

Here is the CRA calculation sheet for the grocery store rebate. Use it for exact calculations in any circumstance.

Who will get the grocery rebate in Canada?

Qualifying Canadians who filed their 2021 taxes will get the grocery rebate. Approximately 11 million Canadians are eligible for this benefit. To be eligible for this rebate, you had to earn under $38,000 in annual household income. Individuals who earned under $32,000 would also qualify. This includes Canadians who filed their 2021 taxes with no income reported.

Related Reading: Will seniors get a raise in 2023 in Canada?

Who is eligible for the grocery rebate?

Below is the eligibility criteria for the grocery rebate:

  • You must be at least 19 years old.
    • Or if you are under 19 years old and meet either of the criteria:
      • Have a spouse or common-law partner (or you had one in 2021).
      • Are a parent and live with your child (or were a parent and lived with your child in 2021).
  • Households who filed their 2021 taxes and earned under $38,000.
  • Individuals who earned under $32,000 in 2021 and filed their tax return.
  • Filed 2021 taxes and reported no income.
  • In total, approximately 11 million Canadians are eligible for this benefit.

How to apply for the grocery rebate in Canada

There is no separate application for the grocery rebate. If you filed your 2021 taxes and qualify, the grocery rebate should have been sent out to you on July 5, 2023. The CRA has attempted to have as many Canadians sign up for direct deposit. Cheques would have been mailed if you are not yet signed up for direct deposit with the CRA. Consider setting yourself up to receive direct deposits from the CRA. This allows for speedier access to future funds.

If you believe you’re eligible for the grocery rebate, but didn’t receive it on July 5, reach out to the CRA to inquire.

How do I claim my grocery rebate?

If you qualify for the grocery rebate, the CRA should have sent out a payment on July 5, 2023. The payment is either through direct deposit or by cheque. The CRA requested Canadians who believed they are eligible to wait 10 days before contacting them about missing payments. If you believe you are eligible and have not received your benefits contact the CRA.

It has been a rough few years for Canadians with the COVID-19 pandemic in 2020 and the sequence of events that followed. Canadians were hit with the highest inflation many had seen in their lifetime. Any aid is beneficial in these times. Review your bank statements, CRA account, and Notice of Assessment from 2021. This will give a better idea if you should have or did receive the grocery rebate. If you don’t have an online CRA account, consider signing up. An online CRA account allows for all your documents to be kept in one place. It also allows easier access to CRA information, applications and services.

If you need help with debt and managing the high cost of living, read about do-it-yourself solutions or seek professional support. We all need some help from time to time!

Read More: Carbon Tax Rebate

You’re in the right place for financial advice.

Getting started is easy, fast and free. Match to your perfect advisor now.

Get 12 Smart Questions Everyone Should Ask Their Financial Advisor

Download these questions plus more with the Advisorsavvy community newsletter – subscribe now and enjoy a wealth of knowledge.

Subscribe now and get 12 Smart Questions Everyone Should Ask Their Financial Advisor