There’s no doubt that the cost of living is going up in Canada. The price of groceries alone has increased by 5 to 7% since last year. That’s a noticeable difference, especially if your salary isn’t going up with the rising costs.
Recently, the government announced Bill C-46, the Cost of Living Act, which brings a one-time Grocery Rebate to help Canadians with the rising cost of groceries.
Read on to learn more about the Grocery Rebate from the CRA, including how much you can receive, who is eligible, and when you can expect to receive it.
What is the Canada Grocery Rebate?
The Canada Grocery Rebate is a one-time incentive from the federal government designed to help with the rising cost of living.
On May 11, 2023, it became law as Bill C-46, the Cost of Living Act, and is now set to provide inflation relief to over 11 million Canadian families with low to modest incomes. This incentive also came alongside a $2 billion top-up to Canada’s public healthcare system.
On July 5, 2023, the Grocery Rebate will automatically be distributed to eligible Canadians via cheque or direct deposit.
Although this incentive is aimed at helping Canadians with the rising cost of groceries due to inflation, it can be spent on anything.
How Much Will You Recieve From the Grocery Rebate?
If you are eligible and fall under the Grocery Rebate income threshold, you will receive:
- Up to $467 for eligible couples with two children.
- Up to $234 for eligible singles with no children.
- Up to $225 for eligible seniors.
This is in addition to the amount you will receive from the quarterly GST payments.
Grocery Rebate Payments Eligibility
To be eligible for the Grocery Rebate, you must be 19 years or older and have filed your taxes in 2021.
Single Canadians must have earned $45,000 or less. For couples, the combined household income must be $65,000 or less.
You do not need to apply for this incentive; you will automatically receive it along with your GST payment on July 5, 2023.
Grocery Rebate Canada Payment Dates
This one-time Grocery Rebate will be delivered on July 5, 2023.
If you’ve signed up for direct deposit through the CRA, you will automatically receive the money in your bank account. Otherwise, you will be sent a cheque in the mail.
Ensure you have filed your 2021 taxes, or you may not receive this benefit.
How to Apply for the Grocery Rebate in Canada
You do not need to apply for the Grocery Rebate. If you are eligible, this rebate will automatically be delivered to your bank account, or you will receive a cheque in the mail on the same day as the July GST payment on July 5, 2023.
However, if you have not already filed your 2021 tax return, you must do so in order to receive this payment.
Other Government Programs and Incentives To Help With the Cost of Living
GST/HST Tax Credit
The GST/HST tax credit is a quarterly tax-free payment for eligible Canadians. This helps offset the cost of GST and HST when you buy almost anything in Canada.
The GST credit is paid every 5th of January, April, July, and October 2023.
Eligible single Canadians can get up to $467, and couples can receive up to $612, and up to $161 per child under 19 years old.
Disability Tax Credit (DTC)
The Disability Tax Credit helps eligible Canadians with mental or physical impairments or their supporting family member lower the amount of income tax they need to pay.
Those eligible can receive up to $8,870 plus a $5,174 supplement for children.
Canada Child Benefit (CCB)
Eligible families with children under 18 years old can receive this monthly tax-free benefit to help with the cost of childcare.
Families can receive a maximum annual benefit of $6,997 for each child under 6 years old and up to $5,903 per year for each child between 6 and 17 years of age.
Canada Workers Benefit (CWB)
The Canada Workers Benefit is a quarterly payment that helps families and single individuals who earn a low income.
Eligible single Canadians can get up to $1,395, and eligible families can receive up to $2,403 per year.
The CWB is split in two: a basic amount and a disability amount.
Canada Dental Benefit (CDB)
The Canada Dental Benefit is a new benefit that helps offset the cost of dental care for children under 12 years old.
Eligible families can receive up to $650 per child for two years.
FAQs
Canadians can expect the one-time Grocery Rebate alongside the GST payment on July 5th, 2023.
In general, Canadians pay more for their groceries than their US counterparts. In a study, researchers found that Canadians pay 1.5 to 3 times more for dairy and poultry products due to federal “supply management” policies.
Eligible Canadians get a quarterly GST/HST rebate to help offset the cost of GST and HST taxed on most goods in Canada. The GST rebate is delivered every 5th of the month in January, April, July, and October 2023.
The Canada Housing Benefit is a provincial benefit that helps low-income families and individuals who struggle to pay rent. The government provided a one-time top-up of $500 earlier this year. Read more about it here.
