If rising inflation and the higher cost of living have stretched your household budget, some relief has arrived. In May, the Cost of Living Act (Bill C-46) became law and introduced several measures to ease expenses for Canadians — including a one-time grocery rebate. Below is a clear, up-to-date guide to the Canada grocery rebate: what it is, who qualifies, how much you can expect, when it was paid, how payments are issued, how to avoid scams, and other practical tips to save on groceries.
What is the grocery rebate in Canada?
The grocery rebate is a one-time payment created to help low- and modest-income Canadians cope with higher food costs following sharp inflation. Food prices and everyday essentials rose significantly during 2022 and into 2023, prompting the federal government to boost support by temporarily increasing the goods and services tax / harmonized sales tax (GST/HST) credit. The grocery rebate functions as an additional top-up to that existing GST/HST credit, providing targeted relief to millions of households.
Who gets the grocery rebate?
The rebate was designed for low- and modest-income individuals and families. Eligibility is generally determined by adjusted net family income reported on your 2021 tax return and your family situation as of January 2023. Specifically, individuals with net income under $32,000 and families with net income under $38,000 qualified for the payment. Because the grocery rebate is distributed through the GST/HST credit program, you must be a Canadian resident and have filed your 2021 income tax return to receive it.
Important: eligibility for the grocery rebate is based on 2021 tax returns, while eligibility for ongoing GST/HST credit payments is determined from 2022 tax returns. That means someone could qualify for the grocery rebate but not for the July GST/HST credit (or the reverse), depending on the income reported in each tax year.
How much will I get from the grocery rebate?
The grocery rebate amount varied by household composition and income. It was calculated as double the GST/HST credit amount paid in January 2023. Maximum amounts, rounded to the nearest dollar, were set at $153 per adult, $81 per child, and a $81 single supplement for single adults. To illustrate how the totals work: a two-parent family with two children could receive up to $467 in total; a single adult without children could receive up to $234; and many seniors could receive up to $225, depending on their GST/HST credit entitlement.
When will the grocery rebate be paid out?
The one-time grocery rebate payments were issued starting with the July 2023 GST/HST credit payments; distribution began on July 5, 2023. Eligible recipients received the rebate automatically as either a direct deposit to their bank account or a government cheque. If you expected a payment but did not receive one, the government advised waiting approximately 10 days after the payment date before contacting authorities to allow for processing and mail delays.
How do you apply for the grocery rebate?
No application was required. If you met the eligibility rules and had filed your 2021 tax return, the grocery rebate was paid automatically. If you did not file a 2021 return but were otherwise eligible, you could still file for that tax year — even if you had no income to report — to establish eligibility for credits and benefits.
Be alert for scams: fraudsters may contact you by email, phone, or text offering the grocery rebate and asking you to click links or provide personal or financial information. The Canada Revenue Agency (CRA) will not request personal banking information via unsolicited messages. If you receive messages claiming to be from the CRA about the grocery rebate, do not respond or click links. Instead, verify your situation by checking your CRA account online or contacting CRA directly through official channels.
Scam warning: If you receive an email or text message claiming to be from the CRA about the Grocery Rebate, treat it as a scam. Do not click links or share personal banking information. Verify any government payment requests only through official CRA services.
How else can you save money on groceries?
Despite one-time relief measures, many households still face high grocery bills. Practical strategies can reduce food costs over time: meal planning, buying in bulk when it saves money, shopping weekly flyers for sales, using store loyalty programs, and downloading food rescue or discount apps can all help. Redeeming rewards points from credit cards is another effective way to lower grocery spending. For example, loyalty programs such as PC Optimum allow point redemptions at major grocery chains — where points translate directly into grocery savings.
Combining multiple approaches — budgeting, planning, using rewards and offers, and reducing food waste — yields the best long-term savings on groceries.
What other affordability initiatives are coming from the federal government?
The Cost of Living Act included several additional measures aimed at improving affordability and support. These measures included implementation steps for the Canadian Dental Care Plan to expand access to dental care, adjustments to registered education savings plan (RESP) withdrawal limits to help students cover education costs, and changes to the Canada Workers Benefit to make benefit payments available sooner for eligible workers. Collectively, these initiatives aim to provide targeted relief across different areas of household spending and support vulnerable groups.
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