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 | 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.
- Eligibility: Based on 2021 tax return and income thresholds.
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?
To receive the Grocery Rebate, individuals must meet the following eligibility criteria:
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
The government has set income limits to determine eligibility. Below are the qualifying income limits for individuals and families:
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 |
If your income falls within these limits, you may qualify for the Grocery Rebate. The payment will be processed through direct deposit or cheque via CRA.
How Much is the Grocery Rebate?
The amount of Grocery Rebate a person receives is based on family size and income. Below is the estimated rebate amount:
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 |
The Grocery Rebate is a one-time payment, and while the government has no current plans to extend it beyond 2025, future extensions will depend on economic conditions.
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).
Frequently Asked Questions (FAQs)
What is the Grocery Rebate Bill?
The Grocery Rebate Bill is a one-time financial relief payment introduced by the government to help low- and middle-income Canadians with rising grocery costs.
Who is eligible for the Grocery Rebate?
Eligibility is based on 2021 income tax returns and family size. Individuals who receive the GST credit may also qualify, but the income thresholds are different.
How much will I receive from the Grocery Rebate?
The amount varies based on family size, ranging from CAD 234 for a single individual to CAD 628 for a family with four children.
Do I need to apply for the Grocery Rebate?
No. If you are eligible, the Canada Revenue Agency (CRA) will automatically process your payment based on your 2021 tax return.
Will the Grocery Rebate affect my other benefits?
No. The rebate does not reduce any other federal benefits, including the GST credit, Canada Child Benefit (CCB), or Old Age Security (OAS).
Is the Grocery Rebate a one-time payment?
Yes. Currently, the Grocery Rebate is a one-time payment, and there are no plans for it to continue in future years unless new legislation is introduced.
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