Everything you need to know about the new Grocery Rebate.

August 3, 2023

If you’ve noticed a big jump in your grocery bill this year, you’re not alone. In fact, Canada’s Food Price Report 2023 estimated that grocery prices would increase up to 7% - which means an average Canadian family of 4 will spend more than $16,000 annually on food, an increase of more than $1,000 from 2022.

Because of unprecedented inflation, the Government of Canada introduced a Grocery Rebate to provide financial support to eligible Canadians.

Who is eligible?

It’s easy to determine who is eligible for the rebate. The Grocery Rebate is based on your 2021 tax return, so you must file a tax return for 2021 in order to receive it, even if you didn’t have any income to report that year.

The Grocery Rebate will be given to anyone who is entitled to receive the GST/HST credit in January 2023, which is based on your 2021 tax return. This means, even if you didn’t qualify for the GST/HST credit in July 2023, you could still get the Grocery Rebate. That’s because the GST/HST credit for July 2023 is based on your 2022 tax return.

How much can people expect to get back in the Grocery Rebate?

The Grocery Rebate will be equivalent to double the GST/HST credit amount you received in January 2023.

The payment amount is based on your family situation in January 2023 and your 2021 adjusted family net income. For those who are single, they can expect to receive a maximum payment of up to:

  • $234 (no children)
  • $387 (with 1 child)
  • $467 (with 2 children)
  • $548 (with 3 children)
  • $628 (with 4 children)

For those who are married or living with a common law partner, they can expect to receive a maximum payment of up to:

  • $306 (no children)
  • $387 (with 1 child)
  • $467 (with 2 children)
  • $548 (with 3 children)
  • $628 (with 4 children)

It’s important to note that payments will be reduced if your net income on your 2021 tax return was more than $39,826.

The Grocery Rebate will be issued on July 5, 2023

If you believe you're eligible for the Grocery Rebate but do not receive it, the Canada Revenue Agency recommends you wait 10 business days and then contact them. If you’re unsure if you’re eligible for this payment, reach out to your local H&R Block Tax Expert to help you navigate and get the credits, benefits and rebates you’re entitled to.

For any questions about how to get your biggest tax refund, find an office near you to book an appointment with one of our H&R Block Tax Experts today. 

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