Canada’s New Grocery Rebate: What to Know About the One Time Tax Free Payment For Low Income Canadians

As part of Canada’s 2023 budget, the federal government has announced initial details of a new “grocery rebate” which would attempt to combat the rising cost of living in Canada. Inflation-driven food price hikes have been a significant challenge for many Canadians, particularly low- and modest-income families who are struggling to make ends meet.

How much does the Grocery Rebate give to eligible Canadians?

Under this program, the new grocery rebate will provide $2.5 billion in targeted inflation relief to approximately 11 million low- and modest-income Canadians and families across the country. This would mean a one-time payment of up to an extra $467 for eligible couples with two children; up to an extra $234 for single Canadians without children; and an extra $225 for seniors, on average.

Who is eligible for the new Grocery Rebate?

It will be a one-time rebate that would show up through the Goods and Services Tax Credit (GSTC). The government classifies the GSTC as helping “low- and modest-income individuals and families.” This materially means that families with a 2021 net income below $39,826 are eligible for the maximum amount in GSTC, and therefore will also receive the full Grocery Rebate this year.

When can Canadians expect this rebate?

Exactly how long it will take for Canadians to see this grocery rebate will likely depend on how quickly the budget is approved. No specific date has been chosen for the payments yet but Canadians can expect to receive their money “as soon as possible following the passage of legislation”.