With the rising cost of groceries and inflation affecting households across Canada, the government has introduced the Grocery Rebate Bill as part of the Cost of Living Act. This initiative aims to provide financial assistance to low- and middle-income families, ensuring they receive relief from inflation and can better manage their essential expenses.
The Grocery Rebate will be a one-time payment and will not affect other benefits, such as the GST tax credit. Approximately 11 million eligible Canadians will receive this rebate either through direct deposit or cheque from the Canada Revenue Agency (CRA).
Canada Grocery Rebate Bill (C-46) Explained
Grocery Rebate Bill Overview
| Grocery Rebate Bill | Details |
|---|---|
| Program Name | Grocery Rebate Bill 2025 |
| Introduced Under | Cost of Living Act |
| Administered By | Canada Revenue Agency (CRA) |
| Rebate Type | One-time payment |
| Estimated Recipients | 11 million Canadians |
| Official Website | www.canada.ca |
Key Highlights
- Purpose: To help Canadians manage increasing grocery prices.
- Eligible Recipients: Low- and middle-income individuals and families.
- Rebate Type: One-time payment, separate from other benefits.
- Payment Method: Direct deposit or cheque from the CRA.
- Official Announcement: Introduced in Budget 2025, approved by Parliament on July 5, 2025.
What is Canada’s Grocery Rebate Bill?
The Grocery Rebate Bill was introduced in Budget 2025 and passed in Parliament on July 5, 2025. This rebate is designed to provide temporary financial relief to Canadians struggling with increasing grocery costs due to inflation.
The rebate amount is separate from other federal benefits, meaning eligible recipients of the GST tax credit will receive this rebate in addition to their usual benefits. The rebate is based on family income and size and will help ensure low- and middle-income Canadians can afford essential groceries.
Who Qualifies for the Grocery Rebate Bill?
Basic Eligibility Requirements
- Must be a resident of Canada.
- Must have filed a tax return for 2021, even if no income was earned.
- Income must be below the specified threshold based on family status.
- Individuals who qualify for the GST credit may also qualify for the Grocery Rebate.
Income Thresholds for Eligibility
For Single Individuals
| Family Situation | Income Limit (2021) |
| Single resident | CAD 49,166 |
| Unmarried with 1 child | CAD 55,286 |
| Unmarried with 2 children | CAD 58,506 |
| Unmarried with 3 children | CAD 61,726 |
| Unmarried with 4 children | CAD 64,946 |
For Married Couples
| Family Situation | Income Limit (2021) |
| Married, no children | CAD 52,066 |
| Married with 1 child | CAD 55,286 |
| Married with 2 children | CAD 58,506 |
| Married with 3 children | CAD 61,726 |
| Married with 4 children | CAD 64,946 |
How Much is the Grocery Rebate?
For Single Individuals
| Family Size | Rebate Amount |
| No children | CAD 234 |
| 1 child | CAD 387 |
| 2 children | CAD 467 |
| 3 children | CAD 548 |
| 4 children | CAD 628 |
For Married Couples
| Family Size | Rebate Amount |
| No children | CAD 306 |
| 1 child | CAD 387 |
| 2 children | CAD 467 |
| 3 children | CAD 548 |
| 4 children | CAD 628 |
How Will the Grocery Rebate Be Paid?
The Grocery Rebate will be issued by Canada Revenue Agency (CRA) using the same method as other government benefits, such as the GST tax credit.
Payment Methods
- Direct Deposit: If you have registered for direct deposit with CRA, your payment will be deposited into your bank account automatically.
- Cheque: If you receive benefits by mail, you will get a cheque.
Taxation & Impact on Other Benefits
- The rebate is not taxable.
- The rebate will not reduce other federal benefits such as the GST credit, Canada Child Benefit (CCB), or Old Age Security (OAS).
FAQs
Who will get the Grocery Rebate in Canada in 2025?
Eligible low- and middle-income Canadians who filed a 2021 tax return and meet CRA income thresholds will receive the rebate.
When will the Grocery Rebate be paid?
The rebate is expected to be paid in July 2025, following its approval on July 5, 2025.
Do I need to apply separately for the Grocery Rebate?
No. If you are eligible for the GST credit, you will be automatically assessed for the Grocery Rebate.
Will the Grocery Rebate affect my GST, CCB, or OAS payments?
No, the Grocery Rebate is a one-time tax-free payment and does not affect any existing government benefits.
Is the Grocery Rebate taxable?
No, the Grocery Rebate is not subject to income tax.
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