As grocery prices continue to climb due to inflation and supply chain disruptions, many Canadians have struggled to afford essential food items. In response, the Canadian government introduced a one-time $628 Grocery Rebate in 2025. This initiative was designed to provide financial relief to lower- and middle-income households, helping them manage the rising cost of groceries.
This guide offers a thorough overview of the rebate, including eligibility requirements, payment details, how to check your payment status, and its broader implications.
What is the $628 Grocery Rebate?
The $628 Grocery Rebate was a government-issued financial support measure included in the 2025 federal budget. Its goal was to offset the impact of food price inflation by providing additional funds to eligible individuals and families. Unlike other assistance programs, no application was required—eligible recipients automatically received the payment.
Why Was the Grocery Rebate Created?
Between 2021 and 2025, grocery prices in Canada soared at an unprecedented rate. According to Statistics Canada, food costs increased by 11.4% in 2022, marking the most significant jump in over four decades. Everyday essentials like dairy, fruits, vegetables, and meat saw double-digit price hikes, straining household budgets nationwide.
To address this challenge, the government implemented the Grocery Rebate as a supplementary financial aid within the GST/HST credit system. This ensured that qualifying individuals received an extra payment in July 2025, effectively doubling their January 2025 GST/HST credit.
Essential Details of the $628 Grocery Rebate
| Category | Information |
|---|---|
| Rebate Amount | Up to $628, depending on marital status and family size |
| Payment Date | July 5, 2025, alongside the GST/HST credit |
| Eligibility | Based on 2021 tax return, GST/HST credit status, household income, and family size |
| Objective | To help Canadians manage food costs amid inflation |
| Application Required? | No, eligibility was determined automatically |
| Administered By | Canada Revenue Agency (CRA) |
Who Qualified for the Grocery Rebate?
Eligibility for the rebate was determined based on the following factors:
1. Filing a 2021 Tax Return
Even individuals with no reported income had to file a 2021 tax return to be considered for the rebate.
2. Receiving the GST/HST Credit in January 2025
The Grocery Rebate was linked to the GST/HST credit program. If an individual received the GST/HST credit earlier in the year, they were automatically eligible for the rebate.
3. Household Income and Family Size
The rebate amount was based on adjusted family net income from the 2021 tax year. Below is a breakdown of the maximum rebate amounts:
Single Individuals
| Number of Children | Maximum Rebate |
| No children | $234 |
| 1 child | $387 |
| 2 children | $467 |
| 3 children | $548 |
| 4+ children | $628 |
Married or Common-Law Couples
| Number of Children | Maximum Rebate |
| No children | $306 |
| 1 child | $387 |
| 2 children | $467 |
| 3 children | $548 |
| 4+ children | $628 |
Payment Timeline and Methods
The Grocery Rebate will deposited on July 5, 2025, using the same method as the GST/HST credit—either via direct deposit or cheque. For those who filed their 2021 tax return late, payment was issued once the CRA processed their return.
How to Check Your Grocery Rebate Payment Status
If you expected to receive the rebate but did not, follow these steps to verify your payment status:
- Log into CRA My Account – Access the CRA My Account website.
- Go to “Benefits and Credits” – This section lists all government benefits received.
- Locate the Grocery Rebate – Look for a transaction labeled “Grocery Rebate” dated July 5, 2025.
- Check CRA Notices – Any official correspondence regarding the rebate will appear in your CRA account or mail.
- Contact the CRA – If you were eligible but did not receive the payment, call 1-800-959-8281 for assistance.
Is the Grocery Rebate Considered Taxable Income?
No, the Grocery Rebate was not taxable. It did not need to be reported on tax returns and had no effect on other government benefits or income-based credits.
Also Read: Canada CRA $3,200 Pension Boost Coming in April 2025 – Who Qualifies & When?
Comparing the Grocery Rebate to Other Government Assistance Programs
| 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 was a one-time payment, strategic spending can help extend its impact. Here are some ways to use it wisely:
- Buy non-perishable staples in bulk – Stock up on rice, beans, pasta, and canned goods.
- Utilize discount shopping apps – Apps like Flipp help track store promotions and coupons.
- Plan meals ahead of time – Reducing impulse purchases can save money over the long term.
- Use store loyalty programs – Many supermarkets offer cashback and discounts through membership rewards.
- Shop at budget-friendly retailers – Discount grocers and local markets often provide better prices.
2025 Will There Be Another Grocery Rebate?
As of April 2025, there has been no government announcement regarding a new Grocery Rebate. While there is public demand for similar financial relief programs, no future rebates have been confirmed.
Frequently Asked Questions (FAQs)
1. Did I need to apply for the Grocery Rebate?
No, eligibility was determined automatically by the Canada Revenue Agency (CRA) based on 2021 tax filings and GST/HST credit status.
2. How do I check if I received the rebate?
You can check your CRA My Account or review your bank transactions for a deposit labeled “Grocery Rebate” on July 5, 2025.
3. What if I qualified but didn’t receive the payment?
If you were eligible but did not get the rebate, contact the CRA at 1-800-959-8281 for support.
4. Will the government introduce another Grocery Rebate in the future?
At this time, no additional Grocery Rebates have been announced for 2025.
The $628 Grocery Rebate provided essential financial relief for many Canadians struggling with food costs. Although it was a one-time initiative, it highlighted the importance of government assistance programs during periods of economic hardship.
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