CRA to Provide One-Time Grocery Rebate Payments on July 5th

The long-awaited “grocery rebate” payments promised by the Canada Revenue Agency (CRA) will finally be issued to eligible Canadians on July 5th.

After several months since its introduction in the 2023 federal budget, the one-time benefit aimed at addressing food inflation and affordability will be deposited into the bank accounts of millions of low- and modest-income Canadians this Wednesday.

This special payment will be disbursed through the existing GST/HST tax credit system, alongside the regular quarterly GST/HST payments.

Individuals and families who qualify for the GST/HST credit payment for January 2023 and have filed their recent tax returns can expect to receive this rebate.

The grocery rebate will be double the amount of the GST/HST credit received in January, varying based on each family’s circumstances and adjusted family net income.

For single individuals, the maximum payment amounts are as follows:

• $234 for individuals with no children
• $387 for individuals with one child
• $467 for individuals with two children
• $548 for individuals with three children
• $628 for individuals with four children

For married couples or common-law partners, the maximum payment amounts are as follows:

• $306 for couples with no children
• $387 for couples with one child
• $467 for couples with two children
• $548 for couples with three children
• $628 for couples with four children

However, it is worth noting that some individuals may be eligible for the grocery rebate but not the July GST/HST credit, or vice versa, as clarified by the CRA.

While the Grocery Rebate is calculated based on individuals’ 2021 tax returns, the next quarterly GST/HST credit payment in July 2023 is calculated using the 2022 tax returns, according to the tax agency.

Designed to help Canadians cope with rising grocery expenses caused by inflation, the grocery rebate comes with a price tag of $2.5 billion for the federal government.

Earlier this spring, CTVNews conducted interviews with Canadians regarding their plans for the grocery rebate, and the responses ranged from purchasing fresh fish to buying snacks for children.