With grocery prices steadily climbing due to inflation and ongoing supply chain challenges, many Canadians are feeling the pressure at the checkout counter. Essential items like dairy, produce, and meat have seen price hikes that strain household budgets. To ease the burden, the Canadian government has introduced a one-time $628 Grocery Rebate in 2025, aimed at providing much-needed financial relief to lower- and middle-income families.
This comprehensive guide will give you a detailed understanding of how the $628 Grocery Rebate works—who qualifies, how to check your payment status, and the broader implications for Canadians facing rising food costs. We’ve also provided practical tips to maximize your rebate and compare it with other government programs.
What is the $628 Grocery Rebate?
The $628 Grocery Rebate is a direct financial support initiative introduced in 2025 to help Canadians cope with the rising costs of food. It was included in the federal budget as part of the government’s ongoing effort to alleviate the financial strain caused by inflation.
The rebate aims to provide immediate assistance to families by delivering an additional payment to eligible individuals and households. The amount is not taxable, and eligibility is determined automatically, meaning you don’t have to apply. If you meet the criteria, you’ll receive the payment without any additional paperwork.
Unlike other assistance programs, this rebate is specifically designed to help with grocery bills, offering relief to Canadians struggling with inflated prices for essential items.
Why Was the Grocery Rebate Introduced?
Between 2021 and 2025, Canadians saw their grocery bills rise significantly. Food inflation reached an all-time high, with Statistics Canada reporting a 11.4% increase in food costs in 2022—the largest rise in over four decades. This unprecedented surge in food prices caused financial strain, particularly on lower- and middle-income families, who found it increasingly difficult to afford basic staples.
To counter this, the government decided to introduce the $628 Grocery Rebate as part of the GST/HST credit system. The rebate is intended to ease the immediate financial burden for eligible Canadians by providing them with extra funds to help offset the higher cost of food.
Key Features of the $628 Grocery Rebate
Here’s a breakdown of the most important details you should know about the rebate:
| Category | Details |
|---|---|
| Rebate Amount | Up to $628, based on family size and marital status |
| Payment Date | July 5, 2025, along with the GST/HST credit |
| Eligibility | Based on 2021 tax return, GST/HST credit, family size, and household income |
| Objective | To assist Canadians in managing food costs due to inflation |
| Application Required | No, eligibility is automatically determined |
| Administered By | Canada Revenue Agency (CRA) |
Who Qualifies for the Grocery Rebate?
Eligibility for the Grocery Rebate is determined based on several factors, such as your tax filings and household income. Here’s a detailed breakdown:
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Filing a 2021 Tax Return
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Even if you had no income in 2021, you were still required to file a 2021 tax return. This is the primary factor in determining your eligibility for the rebate.
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Receiving the GST/HST Credit in January 2025
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The Grocery Rebate is linked to the GST/HST credit, so if you received the credit in January 2025, you’re automatically eligible for the rebate. The amount you receive depends on your income and family situation.
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Household Income and Family Size
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The rebate is designed to assist families based on their net income and family size. The more children you have, the larger your rebate. Below is a breakdown of the maximum rebate amounts you can expect:
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Maximum Rebate Breakdown by Family Type
| Single Individuals | No Children | 1 Child | 2 Children | 3 Children | 4+ Children |
|---|---|---|---|---|---|
| Rebate Amount | $234 | $387 | $467 | $548 | $628 |
| Married or Common-Law Couples | No Children | 1 Child | 2 Children | 3 Children | 4+ Children |
|---|---|---|---|---|---|
| Rebate Amount | $306 | $387 | $467 | $548 | $628 |
When Will the Payment Be Made?
The Grocery Rebate will be deposited on July 5, 2025, alongside the regular GST/HST credit. The payment will be sent via the same method you selected for your GST/HST credit—either direct deposit or by cheque.
For individuals who filed their 2021 tax return late, payments will be processed once the Canada Revenue Agency (CRA) has reviewed and accepted their return.
How to Check Your Grocery Rebate Payment Status?
If you believe you are eligible for the Grocery Rebate but haven’t received it, here’s how to verify your payment status:
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Log into CRA My Account
Visit the CRA My Account portal online to check the status of your rebate. -
Go to “Benefits and Credits”
Navigate to this section, where you’ll find a list of all the government benefits you’ve received. -
Look for the Grocery Rebate
Your Grocery Rebate should be listed as a transaction labeled “Grocery Rebate” dated July 5, 2025. -
Check for CRA Notices
Any official communications regarding the rebate will appear in your CRA account or will be sent by mail. -
Contact CRA
If you’re eligible but haven’t received your rebate, call 1-800-959-8281 for assistance.
Is the Grocery Rebate Taxable?
No, the Grocery Rebate is not considered taxable income. You do not need to report it on your tax return, and it will not affect any other benefits or income-based credits you may be receiving.
How Does the Grocery Rebate Compare to Other Government Assistance Programs?
Here’s a quick comparison between the Grocery Rebate and other Canadian government benefits:
| Benefit | Taxable? | Frequency | Eligibility Based On |
|---|---|---|---|
| Grocery Rebate | No | One-time (July 2025) | 2021 Tax Return, GST Credit |
| GST/HST Credit | No | Quarterly | Income, Family Size |
| Canada Child Benefit (CCB) | No | Monthly | Number of children, income |
| Climate Action Incentive | No | Quarterly | Province, income |
Practical Ways to Maximize the Grocery Rebate
Although the Grocery Rebate is a one-time payment, you can maximize its impact by being strategic with your spending. Here are some practical tips:
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Buy Non-Perishable Staples in Bulk
Purchase items like pasta, canned goods, and rice in bulk to save money over time. -
Use Shopping Apps for Discounts
Apps like Flipp can help you find coupons and track store promotions to get the best deals. -
Plan Meals Ahead of Time
Meal planning reduces impulse buying, helping you stick to a budget and avoid unnecessary purchases. -
Sign Up for Store Loyalty Programs
Many stores offer cashback, discounts, and other rewards for members. These can add up quickly! -
Shop at Discount Retailers
Discount grocers and local farmer’s markets often offer lower prices on essential goods.
Will There Be Another Grocery Rebate in 2025?
As of now, no official announcements have been made regarding a second Grocery Rebate in 2025. While many Canadians are hopeful for continued financial relief, the government has not confirmed any future rebates at this time.
Frequently Asked Questions (FAQs)
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How do I know if I’m eligible for the $628 Grocery Rebate?
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You’re eligible if you filed a 2021 tax return, received the GST/HST credit in January 2025, and meet the income and family size criteria.
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How much will I receive from the rebate?
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The amount you receive depends on your marital status and the number of children in your household, with a maximum rebate of $628.
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How can I check the status of my Grocery Rebate payment?
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You can check the status by logging into your CRA My Account, reviewing the Benefits and Credits section, or contacting CRA directly.
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Is the $628 Grocery Rebate taxable?
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No, the rebate is not taxable and does not need to be reported on your tax return.
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Sachin is an experienced writer with a strong background in education-related content. With years of expertise in creating informative and engaging material, he covers topics such as teaching strategies, educational technology, and learning methodologies. His work aims to inspire both educators and learners, reflecting his deep understanding of the evolving education landscape.