Key Takeaways
- The Grocery Rebate is a one-time payment that provides targeted inflation relief for low- and modest-income Canadians and families.
- 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, even if you have no income to report for that year.
- The Grocery Rebate amount depends on your family situation in January 2023 and your 2021 adjusted family net income.
Are you looking for ways to save money on your grocery bills? Do you want to know how to get your grocery rebate in Canada for the year 2023? If so, you are in the right place. In this article, we will provide you with a comprehensive overview of the grocery rebate process in Canada, covering eligibility requirements, how to apply, and tips for ensuring your application is successful. By the end of this article, you will learn about the necessary steps to take advantage of this financial benefit, aimed at reducing grocery bills for low- and modest-income Canadians and families.
What is the Grocery Rebate and why was it introduced?
The Grocery Rebate is a one-time payment that provides targeted inflation relief for low- and modest-income Canadians and families. It was introduced by the Government of Canada as part of Budget 2023, in response to the rising cost of living and the impact of the COVID-19 pandemic on the economy.
The Grocery Rebate was issued on July 5, 2023, alongside the July 2023 quarterly GST/HST credit payment¹². The Grocery Rebate was equivalent to double the GST/HST credit amount you received for January 2023¹². The GST/HST credit is a tax-free quarterly payment that helps individuals and families with low and modest incomes offset all or part of the GST or HST that they pay³.
According to the Deputy Prime Minister and Minister of Finance, the Honourable Chrystia Freeland, the Grocery Rebate is a way of delivering important relief to Canadians who need it most, while maintaining Canada’s AAA credit rating and strong track record of fiscal responsibility.
Who can get the Grocery Rebate and how much can they receive?
To receive the Grocery Rebate, you need to meet the eligibility criteria for the 2021 base year. This means that you and your spouse or common-law partner (if applicable) must:
- Be a resident of Canada for income tax purposes in January 2023
- Be 19 years of age or older, or have (or previously had) a spouse or common-law partner, or be a parent who lives or lived with your child
- File a tax return for 2021, even if you have no income to report for that year
You also need to be entitled to receive the GST/HST credit for January 2023. This means that your 2021 adjusted family net income must be below the income threshold for your family size³. The 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 repaid³.
The amount of the Grocery Rebate depends on your family situation in January 2023 and your 2021 adjusted family net income. You could have received a maximum payment of up to¹:
| Family situation | Maximum payment |
|---|---|
| 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) |
To calculate your Grocery Rebate payment, you can use the following formula:
Grocery Rebate = 2 x GST/HST credit amount for January 2023 For example, if you are a single parent with one child and your 2021 adjusted family net income was $30,000, you would have received a GST/HST credit amount of $193.25 for January 2023³. Therefore, your Grocery Rebate would be: Grocery Rebate = 2 x $193.25 Grocery Rebate = $386.50
How to apply for the Grocery Rebate and when to expect the payment?
You do not need to apply for the Grocery Rebate, as it will be delivered automatically to eligible Canadians by direct deposit or cheque through the Canada Revenue Agency (CRA)¹². However, you do need to file a tax return for 2021, even if you have no income to report for that year. This is because the CRA uses the information from your tax return to determine your eligibility and calculate your payment amount.
The deadline to file your 2021 tax return was April 30, 2023, but you can still file it late if you have not done so yet. However, you may face a late-filing penalty and interest charges if you owe taxes for 2021⁴. You can file your tax return online, by mail, or through a tax preparer⁴. You can also use the CRA’s Auto-fill My Return service, which automatically fills in parts of your tax return with information that the CRA has on file for you.
The Grocery Rebate was issued on July 5, 2023, along with the July 2023 quarterly GST/HST credit payment¹². You can check the status of your payment by logging into your CRA My Account or calling the GST/HST credit automated phone service at 1-800-959-1953³. You can also review your Notice of (Re)determination, which provides more information about how much you were entitled to receive and when, and any changes to your payments¹². If you are signed up for My Account, you can find your notice by clicking on the “Mail” link.
IMPORTANT LINKS:
- What Expenses Can You Deduct from Your Rental Income? (Updated 2024)
- How to Get Your EITC Refund Faster in 2024
- CPP, RRSP, TFSA, FHSA, AMT and OAS Changes: What You Need to Know for 2024
- What Happens to Your CPP and OAS Benefits When Your Spouse Dies?
- How to Get the Grocery Rebate Payments in Canada in January 2024
Tips for ensuring your Grocery Rebate application is successful
Here are some tips to help you get your Grocery Rebate without any hassle or delay:
- File your 2021 tax return as soon as possible, if you have not done so yet. This will ensure that the CRA has the most up-to-date information to determine your eligibility and calculate your payment amount.
- Update your personal information with the CRA, such as your address, marital status, and banking information. This will ensure that you receive your payment in the right place and avoid any errors or interruptions³.
- Sign up for direct deposit, if you have not done so yet. This will ensure that you receive your payment faster and more securely, without having to worry about lost or stolen cheques³.
- Contact the CRA if you have any questions or concerns about your Grocery Rebate or GST/HST credit. You can call the CRA’s individual tax enquiries line at 1-800-959-8281 or visit the CRA’s website for more information.
Conclusion
The Grocery Rebate is a one-time payment that provides targeted inflation relief for low- and modest-income Canadians and families. It 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, even if you have no income to report for that year. The Grocery Rebate amount depends on your family situation in January 2023 and your 2021 adjusted family net income.
We hope that this article has provided you with a comprehensive overview of the grocery rebate process in Canada for the year 2023. If you follow the steps and tips outlined in this article, you should be able to get your grocery rebate without any hassle or delay. Remember, the Grocery Rebate is a one-time payment, so make sure you use it wisely and plan your budget accordingly. If you need more help or advice on managing your finances, you can always visit HustleHub, your online platform for financial education and empowerment. At HustleHub, we are here to help you achieve your financial goals and live your best life. Thank you for reading and happy hustling!
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) Minister Fraser highlights Budget 2023 commitments to … – canada.ca. https://www.canada.ca/en/immigration-refugees-citizenship/news/2023/04/minister-fraser-highlights-budget-2023-commitments-to-provide-a-new-grocery-rebate-for-canadians.html. (4) Budget 2023 one-time grocery rebate: how much Canadians could get | Canada. https://dailyhive.com/canada/budget-grocery-rebate-how-much. (5) When is Canada’s federal budget grocery rebate coming?. https://www.moneysense.ca/save/budgeting/when-is-canadas-federal-budget-grocery-rebate-coming/.
