The new Grocery Rebate in Canada is a one-time tax credit introduced by the Government of Canada to help low to modest-income Canadian families offset the rising costs of groceries, which has increased in the last two years.
According to Statistics Canada, the cost of groceries has risen by 9% in the last year, taking its toll on many Canadian households struggling to make ends meet. The Grocery Rebate tax credit was paid out one time on July 5th, 2023 to provide much-needed financial relief to millions of Canadians.
In this blog post, we will discuss everything you should know about the new Grocery Rebate program, including its purpose, how much you can get, eligibility criteria, how to apply for it, and the scheduled Grocery Rebate payment dates.
What is the New Canada Grocery Rebate?
The Canada Grocery Rebate is a one-time incentive introduced by the federal government to assist Canadians with the rising cost of living. It was announced in the 2023 federal budget and became law on May 11, 2023, as Bill C-46, the Cost of Living Act.
The rebate aims to provide inflation relief for over 11 million low- and moderate-income families facing increased grocery expenses.
The impact of inflation has been staggering, with food prices surging by 8.9% in the past year. These skyrocketing costs have made it increasingly difficult for individuals and families to afford basic necessities, straining their overall financial well-being.
Recognising this pressing issue, the government has committed $2.5 billion towards targeted relief, specifically addressing the challenges of meeting monthly grocery bills.
The best part is that there is no need to apply for the rebate. Eligible individuals will automatically receive their payments through cheque or direct deposit. This ensures a hassle-free process for those who qualify.
How Much Will You Receive From The Grocery Rebate?
The amount you will receive for the Grocery Rebate depends on your family situation in January 2024 and your adjusted family net income.
If you are a single individual, you can expect to receive:
Number of Children | Grocery Rebate Amount |
0 | $234 |
1 | $387 |
2 | $467 |
3 | $548 |
4 | $628 |
However, if you are married or have a common-law partner, you can expect to receive:
Number of Children | Grocery Rebate Amount |
0 | $306 |
1 | $387 |
2 | $467 |
3 | $548 |
4 | $628 |
You can use this calculation sheet to check your Grocery Rebate amount.
Canada Grocery Rebate Payment Dates 2024
The Grocery Rebate in Canada was disbursed with the July GST/HST tax credit in 2023 on the 5th of July. There has been no news of the 2024 Grocery Rebate payment, we are only hopeful that it will be disbursed on July 5, 2024.
Eligible Canadian families may receive payments if the rebate will be paid in 2024. If you have already registered for direct deposit with the Canada Revenue Agency (CRA), the rebate amount will be automatically deposited into your bank account.
However, if you have not signed up for direct deposits, you will receive a cheque in the mail. To ensure you receive the Canada Grocery Rebate, you must file your taxes for 2021. Ensure your tax filing is current to be eligible for this rebate.
Who is Eligible for the Canada Grocery Rebate
To be eligible for the Canada Grocery Rebate, you must meet certain criteria. Firstly, you must be at least 19 years old and have filed your taxes for the 2021 tax year. The rebate is primarily targeted at providing financial assistance to low-income Canadian families.
Therefore, you will not qualify for the rebate if your household income exceeds specific limits. The income limit is set at $45,000 for single individuals, while for couples with a combined household income, the limit is $65,000.
How to Apply for the Grocery Rebate in Canada
You don’t need to submit a separate application for the Canada Grocery Rebate. If you meet the eligibility criteria for the rebate, you can expect to receive the payment conveniently.
The distribution of the Grocery Rebate is automatic. You will receive the payment directly in your bank account if you have provided your banking information to the relevant authorities. Alternatively, if you haven’t provided your banking details, you will receive a cheque by mail on the designated payment dates for the Grocery Rebate.
What To Do If You Haven’t Received Your Grocery Rebate
If you haven’t received your Grocery Rebate payment on the scheduled date, there’s no need to worry immediately. The Canadian government estimates that around 11 million Canadians will receive the rebate, so it may take some time to distribute the funds to everyone.
The Canada Revenue Agency (CRA) advises waiting 10 business days after the scheduled payment date before contacting them to address the issue. In the case of the Grocery Rebate, since the payment date is July 5th, you can reach out to the CRA on July 19th or later if you still haven’t received your money.
The CRA can handle the distribution process more efficiently and address any delays or concerns by allowing a reasonable waiting period. If you have not received your Grocery Rebate within the specified timeframe, contacting the CRA for assistance is recommended.
Beware of Grocery Rebate Scams
The Canada Revenue Agency (CRA) has warned about fraudulent activities related to the new grocery rebate. Scammers attempt to deceive individuals by sending text messages and emails claiming to represent the CRA.
In a media statement, the CRA emphasises the importance of remaining vigilant against fraudulent phone calls, emails, and text messages that falsely claim to be from the agency. These scams can lead to identity theft and financial loss.
It is important to note that eligible recipients of the grocery rebate will only receive payments through direct deposit or cheques sent by mail. The CRA explicitly states that it will never initiate conversations regarding taxes, refunds, benefits, or My Account through text or instant messaging, regardless of the circumstances.
The agency mentions certain situations where they may contact individuals, such as when someone owes money or has not filed their tax return on time.
To safeguard against scams, it is crucial to be cautious and verify the authenticity of any communication claiming to be from the CRA.
Other Government Programs and Incentives To Help With the Cost of Living
1. GST/HST Tax Credit
The GST/HST tax credit is a quarterly tax-free payment that helps offset the cost of Goods and Services Tax (GST) and Harmonized Sales Tax (HST) for eligible Canadians. It is received on the 5th of January, April, July, and October 2024. Single individuals can receive up to $467, couples up to $612, and up to $161 per child under 19.
2. Canada Dental Benefit (CDB)
The Canada Dental Benefit is a new program designed to alleviate the cost of dental care for children under 12 years old. Eligible families can receive up to $650 per child for a two-year period.
3. Canada Child Benefit (CCB)
The Canada Child Benefit is a monthly tax-free benefit for families with children under 18. It helps with the cost of childcare. Families can receive up to $6,997 annually for each child under 6 years old and up to $5,903 per year for each child between 6 and 17 years of age.
4. Disability Tax Credit (DTC)
The Disability Tax Credit supports eligible Canadians with mental or physical impairments and their supporting family members by reducing the income tax they must pay. The maximum credit is up to $8,870, with an additional $5,174 supplement for children.
5. Canada Workers Benefit (CWB)
The Canada Workers Benefit is a quarterly payment that assists low-income families and single individuals. Eligible single Canadians can receive up to $1,395, and eligible families can receive up to $2,403 annually. The benefit consists of a basic amount and a disability amount.
RELATED: 14 Canadian Government Benefits For Low-Income Families To Apply For in 2024
Final Thoughts on Grocery Rebate Canada
The Grocery Rebate Canada program is a game-changer for Canadian families facing the challenge of rising grocery prices. By unlocking this financial relief opportunity, you can take control of your budget and ensure a brighter future for your household.
Don’t let the burden of high food costs weigh you down. Act now and explore the eligibility requirements and application process for the Grocery Rebate Canada. Seize this chance to make a significant difference in your monthly expenses.
FAQs on Grocery Rebate Canada
When can Canadians expect the grocery rebate?
Canadians can expect to receive their Grocery Rebate and GST payments on July 5, 2024.
How do I get the grocery rebate?
If you are 19 years and older and have filed your 2021 income taxes, you can expect to receive the Grocery Rebate payment in July 2024 automatically. However, your income will be evaluated by the CRA to ensure you do not exceed the income limits.
Why did the federal budget include a grocery rebate?
The 2023 federal budget introduced a one-time Grocery Rebate to assist Canada’s low- and moderate-income families with skyrocketing food prices.
