As the cost of groceries continues to rise, the Canada Revenue Agency (CRA) is stepping in with a $234 Grocery Rebate to help Canadians cope with food inflation. Originally announced for July, payments will now begin rolling out in August 2025. This one-time, tax-free rebate offers much-needed relief to low- and middle-income households across the country.
Here’s everything you need to know about the rebate—eligibility, payment schedule, and how to ensure you receive it without delays.
Table of Contents
What Is the $234 Grocery Rebate?
The Grocery Rebate is a federal support payment intended to help Canadians manage the rising cost of essentials like meat, dairy, and produce. Prices have increased by 5.2% over the past year, according to recent economic data, and this rebate aims to soften the blow for those most affected.
Modeled after the GST/HST credit, the rebate is:
- Automatic — no application needed
- Tax-free
- Based on 2024 tax return data
Who Qualifies for the Grocery Rebate?
Eligibility is based on:
- Filing a 2024 tax return
- Qualifying for the GST/HST credit
If you already receive the GST/HST credit, you will automatically qualify for this rebate. The CRA uses your income, family size, and marital status from your tax return to determine the payment amount.
Those most likely to benefit include:
- Seniors on fixed incomes
- Families with children
- Low-income individuals and couples
How Much Will You Receive?
While the base amount is $234, the final payment depends on household size and income. Here’s an approximate breakdown:
| Family Type | Estimated Rebate |
|---|---|
| Single adult (no children) | Up to $234 |
| Couple with no children | Up to $306 |
| Single parent with one child | Up to $387 |
| Family with two children | Up to $467 |
Note: These amounts are estimates. Your actual rebate may vary depending on your 2024 income and family structure.
When Will Payments Be Made?
The CRA has confirmed that payments begin August 15, 2025, with timing based on how you normally receive federal benefits:
| Payment Method | Expected Timing |
|---|---|
| Direct Deposit | Starting August 15 |
| Paper Cheque | Within 5–10 business days after August 15 |
How to Ensure You Get Your Payment
To avoid delays:
- File your 2024 tax return immediately, if you haven’t already
- Update your direct deposit information through your CRA My Account
- Check your CRA account for payment status after August 15
- Verify your mailing address, especially if expecting a paper cheque
Late filers may still receive the rebate once their return is processed, but their payment will arrive later than the initial August batch.
Key Features of the Grocery Rebate
- Automatic payment — no application needed
- Based on 2024 tax filing and GST/HST eligibility
- Supports Canadians hardest hit by food inflation
- Tax-free and separate from other benefits
The rebate does not affect your existing benefits like the Canada Child Benefit (CCB), Old Age Security (OAS), or Canada Pension Plan (CPP).
FAQs
Do I need to apply for the Grocery Rebate?
No. The CRA will automatically determine eligibility based on your 2024 tax return and GST/HST credit status.
Will the rebate affect my other benefits?
No. It is a separate, one-time payment and does not reduce any current federal benefits.
When will I get the payment?
When will I get the payment?
