With inflation putting significant pressure on Canadian households, the Government of Canada has launched a one-time $1,000 Grocery Rebate for eligible low- and moderate-income residents.
This tax-free payment is designed to offset the rising cost of essential items and will be automatically distributed in July 2025 by the Canada Revenue Agency (CRA) alongside the GST/HST Credit.
No additional application is required. If you’ve filed your 2023 tax return and are eligible for the GST/HST credit, you may receive this extra rebate. Here’s a complete breakdown of the eligibility, payment structure, and how much you could receive.
What Is the $1,000 Grocery Rebate?
The Grocery Rebate is a one-time, non-taxable payment introduced by the federal government in 2025 to provide targeted relief for Canadian residents struggling with increasing grocery and living costs.
While often referred to as the “$1,000 rebate,” the actual amounts vary based on family size and income.
Who Is Eligible for the Grocery Rebate?
To qualify for this July 2025 payment, you must meet the following conditions:
- Filed your 2023 tax return
- Aged 19 or older as of July 2025
- Resident of Canada for tax purposes
- Eligible for the GST/HST credit based on your 2023 income
Income Thresholds:
| Household Type | Maximum Net Income |
|---|---|
| Single Individual | Up to $45,000 |
| Families (with kids) | Up to $65,000 |
Your eligibility is automatically determined by the CRA based on your 2023 income and number of dependents.
How Much Will You Get?
Here’s a breakdown of the Grocery Rebate amounts based on household structure:
| Household Type | Grocery Rebate Amount (CAD) |
|---|---|
| Single individual | $234 |
| Married/Common-law (no kids) | $306 |
| With 1 child | $387 |
| With 2 children | $467 |
| With 3 children | $548 |
| With 4 or more children | $628 |
The rebate amount is calculated alongside the GST/HST credit, taking into account income level, marital status, and number of dependents.
When Will the Rebate Be Paid?
The Grocery Rebate will be deposited on the same date as the July 2025 GST/HST credit:
| Payment Details | Information |
|---|---|
| Deposit Date | July 5–8, 2025 (expected) |
| Payment Method | Direct deposit or cheque |
| CRA Account Required | Recommended for updates |
If your banking info is on file with the CRA, your payment will arrive via direct deposit. Otherwise, it will be mailed as a cheque.
How Is the Grocery Rebate Different from GST/HST Credit?
It’s important to note that while this rebate is issued together with the GST/HST credit, it is not part of the regular quarterly credit.
| GST/HST Credit | Grocery Rebate 2025 |
|---|---|
| Paid quarterly | One-time payment in July 2025 |
| Based on 2023 tax return | Based on same eligibility criteria |
| Regular income supplement | Special inflation relief bonus |
What Should You Do to Ensure Payment?
To receive the Grocery Rebate without delay:
- File your 2023 tax return before the CRA deadline
- Update your banking info in your CRA My Account
- Check your address to ensure cheque delivery (if applicable)
- Report correct dependent information – number of children directly affects the amount
- Watch for scams – the CRA never sends payments via text or email links
Why the Grocery Rebate Matters
While the maximum amount is $628 per family, the rebate provides meaningful relief for many low-income households who have seen grocery prices soar over the past two years.
Combined with other benefits, this measure aims to help families regain control over weekly food budgets, especially in rural and urban high-cost areas.
The $1,000 Grocery Rebate hitting Canadian bank accounts in July 2025 is a much-needed cost-of-living relief effort by the government. If you’re eligible for the GST/HST credit, filed your 2023 taxes, and meet the income limits, this one-time, tax-free payment will automatically be processed by the CRA.
Take the time to verify your information with the CRA to avoid any delays, and use this benefit to ease the pinch of rising grocery bills.
FAQs
Do I need to apply separately for the Grocery Rebate?
No. If you’re eligible for the GST/HST credit, the rebate will be automatically issued based on your 2023 tax return.
When will the Grocery Rebate be deposited?
The payment is scheduled to be sent in early July 2025, around the same time as the GST/HST credit.
How much can I receive from the Grocery Rebate?
Amounts range from $234 for single individuals to $628 for families with 4 or more children, based on household size.