Grocery Rebate Will Come in February 2024? On What Date is it coming and Who gets it?

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Key Takeaway Box:

  • The Grocery Rebate is a one-time payment that provides financial support to eligible Canadians who are facing rising grocery prices due to inflation.
  • The Grocery Rebate was issued on July 5, 2023, along with the July 2023 quarterly GST/HST credit payment.
  • The Grocery Rebate was equivalent to double the GST/HST credit amount you received for January 2023.
  • To receive the Grocery Rebate, you need to file a tax return for 2021 and be entitled to the GST/HST credit for January 2023.
  • The Grocery Rebate amount depends on your family situation and your 2021 adjusted family net income. You can receive up to $628 as a single parent with four children or as a couple with four children.
February 2024 calendar with a marked date for grocery rebate, alongside a cart full of food items with savings symbols and a diverse group anticipating benefits.
Anticipating February’s Grocery Rebate: Savings on the Horizon for Families Everywhere.

Hello, Hustlers! If you are wondering about the Grocery Rebate that the Government of Canada announced in Budget 2023, you have come to the right place. In this article, we will explain everything you need to know about the Grocery Rebate, such as what it is, when it is coming, who gets it, and how much it is. We will also share some tips on how to use your Grocery Rebate wisely and how to save more money on groceries with HustleHub. Let’s get started!

What is the Grocery Rebate?

The Grocery Rebate is a one-time payment that provides financial support to eligible Canadians who are facing rising grocery prices due to inflation. Inflation is the general increase in the prices of goods and services over time. According to Statistics Canada, inflation in Canada was 3.4% in May 2023, down from 4.4% in April 2023, but still higher than the average of 2% in the past 10 years¹.

The Grocery Rebate is part of the Government of Canada’s efforts to help low- and modest-income Canadians and families cope with the cost of living. The Grocery Rebate is targeted to the Canadians who need it most, such as seniors, single parents, and low-wage workers. The Grocery Rebate is also intended to stimulate the economy by increasing consumer spending and boosting demand for local products and services.

When is the Grocery Rebate coming?

The Grocery Rebate was issued on July 5, 2023, along with the July 2023 quarterly GST/HST credit payment². The GST/HST credit is a tax-free payment that helps individuals and families with low and modest incomes offset all or part of the GST or HST that they pay. The GST/HST credit is paid four times a year, in January, April, July, and October.

If you received your GST/HST credit payment by direct deposit, you should have received your Grocery Rebate in your bank account on July 5, 2023. If you received your GST/HST credit payment by cheque, you should have received your Grocery Rebate by mail within 10 business days of July 5, 2023. You can check the status of your Grocery Rebate by logging into your CRA My Account or calling the CRA at 1-800-959-1953³.

Who gets the Grocery Rebate?

You received the Grocery Rebate if you were entitled to receive the GST/HST credit for January 2023. To get the Grocery Rebate, you need to file a tax return for 2021, even if you have no income to report for that year. The Grocery Rebate was calculated based on your 2021 tax return, but the quarterly GST/HST credit payment issued in July 2023 was calculated based on your 2022 tax return. Please check your Notice of (Re)determination for more information³.

You and your spouse or common-law partner (if applicable) must meet the eligibility criteria for the 2021 base year to qualify for the Grocery Rebate. The eligibility criteria are:

  • You are a resident of Canada for income tax purposes in 2021 and at the beginning of the month in which the GST/HST credit is paid.
  • You are not confined to a prison or similar institution for a period of 90 days or more during 2021.
  • You are not a non-resident of Canada for income tax purposes at any time in 2021.
  • You are not an individual who became a resident of Canada for income tax purposes for the first time in 2021, and you were not a resident of Canada for income tax purposes in any of the previous 18 months before you became a resident.
  • You are not an individual who left Canada permanently in 2021, and you were a resident of Canada for income tax purposes for at least part of the previous 18 months before you left.
  • You are not an individual who died in 2021, and you were a resident of Canada for income tax purposes for at least part of the previous 18 months before you died.

IMPORTANT LINKS:

How much is the Grocery Rebate?

The Grocery Rebate was equivalent to double the GST/HST credit amount you received for January 2023. The amount was calculated based on your family situation in January 2023 and your 2021 adjusted family net income. Your adjusted family net income is your net income plus your spouse’s or common-law partner’s net income, minus any universal child care benefit (UCCB) and registered disability savings plan (RDSP) income received, plus any UCCB and RDSP amounts repaid.

You could have received a maximum payment of up to:

Family situationGrocery Rebate amount
Single$234 (no children)
$387 (with 1 child)
$467 (with 2 children)
$548 (with 3 children)
$628 (with 4 children)
Married or common-law$306 (no children)
$387 (with 1 child)
$467 (with 2 children)
$548 (with 3 children)
$628 (with 4 children)

However, your Grocery Rebate amount may have been reduced if your adjusted family net income exceeded a certain threshold. The threshold varies depending on your family situation and the number of children you have. You can find the exact threshold and reduction rates on the CRA website.

How to use your Grocery Rebate wisely?

The Grocery Rebate is a one-time payment that can help you cover some of your grocery expenses. However, it is not enough to sustain you for a long time. Therefore, you should use your Grocery Rebate wisely and plan your budget accordingly. Here are some tips on how to use your Grocery Rebate wisely:

  • Pay off your high-interest debts. If you have any outstanding debts that charge high interest rates, such as credit cards, payday loans, or overdrafts, you should use your Grocery Rebate to pay them off as soon as possible. This will save you money on interest and fees, and improve your credit score.
  • Save for emergencies. If you do not have any high-interest debts, you should use your Grocery Rebate to build or replenish your emergency fund. An emergency fund is a savings account that you can use to cover unexpected expenses, such as car repairs, medical bills, or job loss. Having an emergency fund can help you avoid going into debt or using your credit card when you face a financial crisis. Ideally, you should have enough money in your emergency fund to cover at least three to six months of your essential living expenses.
  • Invest for the future. If you already have a solid emergency fund, you should use your Grocery Rebate to invest for the future. Investing can help you grow your money over time and achieve your long-term financial goals, such as buying a home, saving for retirement, or funding your education. You can invest your money in various ways, such as opening a registered retirement savings plan (RRSP), a tax-free savings account (TFSA), or a registered education savings plan (RESP). You can also invest in stocks, bonds, mutual funds, exchange-traded funds (ETFs), or other securities. However, before you invest, you should do your research, understand the risks and returns, and choose the investment option that suits your risk tolerance, time horizon, and objectives.
  • Spend on your needs, not your wants. If you have taken care of your debts, savings, and investments, you can use your Grocery Rebate to spend on your needs, such as food, clothing, housing, utilities, transportation, and health care. However, you should avoid spending your Grocery Rebate on your wants, such as entertainment, dining out, travel, or luxury items. These are things that you can live without or postpone until you have more disposable income. Spending your Grocery Rebate on your wants can lead to overspending, debt, and financial stress.

Conclusion

The Grocery Rebate is a one-time payment that can help you cope with the rising cost of groceries due to inflation. However, it is not a long-term solution. If you want to save more money on groceries in the future, you need to use your Grocery Rebate wisely and adopt some smart shopping habits. One of the best ways to do that is to use HustleHub, the platform that connects you with local farmers, producers, and vendors who offer fresh, organic, and affordable food products. With HustleHub, you can save money, support local businesses, reduce food waste, and enjoy a healthier and more balanced diet. What are you waiting for? Join HustleHub today and start saving more money on groceries!

Source: (1) Grocery Rebate – Canada.ca. https://www.canada.ca/en/revenue-agency/services/child-family-benefits/goods-services-tax-harmonized-sales-tax-gst-hst-credit/grocery-rebate.html. (2) Government delivers new Grocery Rebate to Canadians who need it most. https://www.canada.ca/en/department-finance/news/2023/07/government-delivers-new-grocery-rebate-to-canadians-who-need-it-most.html. (3) Legislation to provide new Grocery Rebate and strengthen public health …. https://www.canada.ca/en/department-finance/news/2023/05/legislation-to-provide-new-grocery-rebate-and-strengthen-public-health-care-receives-royal-assent.html.

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