What you need to know about the one-time grocery rebate coming July 5

Eligible Canadians are officially set to receive a one-time grocery rebate this Wednesday, July 5.

The long-awaited payment comes months after the government first announced the benefit as part of the 2023 federal budget. The federal government said that the grocery rebate will be delivered to eligible Canadians by direct deposit or cheque through the Canada Revenue Agency (CRA).

The rebate’s unveiling in May also coincides with when Bill C-46, the Cost of Living Act, which allows the rebate, received Royal Assent. The legislation also includes a $2 billion Canada Health Transfer (CHT) top-up to reduce backlogs and wait times, the May statement said.

The rebate was introduced as a way to compensate Canadians for higher grocery prices due to inflation, though it can be spent on anything.

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The rebate will be up to $467 for eligible couples with two children, $234 for single Canadians without children, and $225 for seniors, on average.

There is no need to apply for the rebate. Individuals and families who were entitled to receive the GST/HST credit for January 2023 and filed a tax return for 2021, even if they have no income to report for that year, can expect to receive the payment.

The rebate is scheduled to be issued alongside the next quarterly GST/HST credit payment will be equivalent to double the GST/HST credit amount Canadians received for January 2023.

The amount received will be calculated based on “your family situation in January 2023 and your 2021 adjusted family net income,” the CRA said in a news release Tuesday.

However, the agency flagged that it is possible Canadians may be entitled to the Grocery Rebate, but not the July GST/HST credit or vice versa.

“The Grocery Rebate is calculated based on your 2021 tax return, but the next quarterly GST/HST credit payment in July 2023 is calculated based on your 2022 tax return,” the agency said.

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Canadians who have either an adjusted family net income lower than $52,066 for married or common-law couples with no children and an income less than $49,166 for a single individual will receive the rebate.

According to the agency, if you are single, you could receive a maximum payment of up to:

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

If you are married or have a common-law partner, you could receive up to:

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

The CRA also notes that if you received your GST/HST credit payment as a lump sum in July 2022, you will still receive a grocery rebate.

– With files from Eric Stober.