Inflation is continuously increasing in Canada and it is directly affecting the pockets of the common people. Especially the tremendous jump in the prices of food items has increased the difficulties of the lower and middle class families. In such a situation, it becomes the responsibility of the government to take steps to relieve its citizens from this economic pressure. Taking an important initiative in this direction, the Canadian government has announced a grocery rebate of up to $1,000, which will be deposited directly into the bank accounts of eligible people in July 2025.
The objective of this scheme is clear – to provide relief to the common people from the rising cost of living and reduce the risk of food insecurity. This is a one-time payment and is completely tax-free, that is, no tax will be levied on it.
What is $1,000 Grocery Rebate and why is this relief being given
This scheme can be considered a sequel to the Grocery Rebate and GST Credit Top-up schemes given in 2023 and 2024. The only difference is that this time the amount has been increased to $1,000, which is a big step compared to before. The reason for this is also clear – the wild rise in food prices and the feeling of insecurity among the people about food items.
This rebate will be issued by the Canada Revenue Agency (CRA) and people whose bank account is already linked to CRA will get this amount directly deposited into their account. The biggest thing is that you will not need to apply separately for this.
Who will get this Grocery Rebate – Eligibility Criteria
The eligibility of this scheme is directly related to GST / HST credit. That is, if you are already getting GST credit, then you will be automatically eligible for this new rebate as well. The government will make the 2024 tax return the basis for this.
Main eligibility conditions:
- You should be a resident of Canada.
- You should have filed Income Tax Return in 2024.
- The annual income of a single person should be less than $45,000.
- The annual income of a family should be less than $65,000.
- Apart from this, people who have children in their families or who are senior citizens are likely to get more money.
- Who will get how much amount – know the possible payment details
Although this scheme is being promoted as $1,000 Grocery Rebate, it does not mean that everyone will get the same amount. How much amount you will get will depend on your family structure and income level.
Below is a description of the possible amounts:
| Family Type | Expected Rebate Amount |
|---|---|
| Single Individual | Up to $500 |
| Couple without Children | Up to $700 |
| Family with One Child | Up to $850 |
| Family with Two or More Children | Up to $1,000 |
| Senior Citizens | $500 to $1,000 |
The CRA will decide this amount based on the information provided in your 2024 tax return and Adjusted Family Net Income.
When and how will you get the payment
Payments under this scheme will be made on July 5, 2025, which is the same date when the government usually pays GST/HST credit. If you have updated your bank account information in the CRA portal, the amount will be deposited directly into the same account.
People who get payment through check may have to wait a few extra days.
Important thing: You do not need to fill any separate form to avail this scheme. The entire process will be automatic and automated. The CRA will look at your tax records to decide whether you are eligible or not.
How to know if you will get Grocery Rebate or not
To know this, you can login to CRA’s ‘My Account’ portal. There it will be visible in your profile whether you will get this payment or not. Apart from this, this information can also be seen quickly through the CRA mobile app.
If you still do not get clear information, you can confirm the status by calling the CRA helpline. Also, this information is also clearly given in the Notice of Assessment sent by the CRA.
What preparations should be made now to get Grocery Rebate
If you want to get this benefit, then it is important to take some important steps now:
Make sure to file tax in 2024.
Go to the website of the CRA and change the bank information, making the payment be allocated directly into your account.
Never disregard a notification issued by email or post by CRA since, it can entail crucial information in regard to your eligibility or payment.
Conclusion
The $1,000 Grocery Rebate scheme is a step from the Government of Canada, which will provide financial relief to millions of people. Especially to those who are struggling for everyday needs in this era of inflation. The government has made it even more easy and efficient by linking it to the GST/HST credit system, so that the needy people can get the benefits directly. If you have not filed your tax return yet, do it immediately and keep your information updated on the CRA portal.
FAQs
Q. 1: What is the $1,000 Grocery Rebate?
A. This is a one-time tax-free payment to provide relief from rising grocery costs due to inflation.
Q. 2: Who is eligible for this rebate?
A. Canadian citizens who are eligible for GST/HST credit based on their 2024 tax returns.
Q. 3: How much money will I get?
A. The amount can range from $500 to $1,000 depending on your income and family situation.
Q. 4: Do I have to apply for anything?
A. No, if you have filed a tax return and have a bank linked to the CRA, the process will be done automatically.
Q. 5: When will I get the payment?
A. The amount will be deposited directly into your account by the CRA on July 5, 2025.
