In response to rising grocery costs and inflation pressures, the Government of Canada introduced a one-time Grocery Rebate in 2023.
The rebate was delivered to eligible Canadians through the Canada Revenue Agency (CRA) on July 5, 2023.
This article reviews who qualified for that rebate, how eligibility was determined, how much people got, and how payments were distributed.
What was the purpose of the Grocery Rebate 2023?
The Grocery Rebate was designed as targeted inflation relief to help low- and modest-income Canadians absorb higher grocery prices.
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It was part of the 2023 federal budget and was legislated via Bill C-46, the Cost of Living Act, No. 3.
The amount was structured to double what someone received under the GST/HST credit in January 2023.
It was delivered together with the July 2023 GST/HST credit payment.
Who qualified for the Grocery Rebate 2023?
Eligibility was tied to being entitled to the GST/HST credit in January 2023. In practice, that meant:
- You and your spouse or common-law partner (if applicable) had to meet the same criteria for the GST/HST credit for January 2023.
- You needed to file a 2021 tax return, even if you had no income, to establish your eligibility base year.
- Your adjusted family net income in 2021 determined the size of your rebate and whether you fell into income cutoffs.
Importantly, the rebate used 2021 income to determine eligibility, whereas the GST/HST credit in July 2023 used the 2022 tax return basis.
That meant someone could qualify for the Grocery Rebate but not for the July 2023 GST/HST credit, or vice versa.
How was the rebate amount calculated?
The Grocery Rebate amount was based on the same factors that govern the GST/HST credit: family structure, number of children, and adjusted family net income (per 2021).
The rebate was twice the value of your January 2023 GST/HST credit.
The maximum payment amounts (for 2023) were:
- For single Canadians (no children): up to $234
- For couples with children, up to $467 in the example of a couple with two children
- Seniors also benefited, receiving an average extra amount around $225
The CRA published a Calculation Sheet that allowed individuals to see how their rebate was computed based on their family situation as of January 2023.
When and how was the Grocery Rebate distributed?
The single payment was issued on July 5, 2023, via the CRA, concurrently with the regular July 2023 GST/HST credit payment.
Payments were delivered either by direct deposit or by cheque, depending on how each recipient received their GST/HST credit setup.
Recipients could find details about their rebate in the Notice of Redetermination sent by CRA, or by logging into their CRA My Account under “Benefits and Credits.”
What were some important eligibility nuances and warnings?
- Even if you did not receive the July 2023 GST/HST credit, you might still qualify for the Grocery Rebate if your 2021 tax return met the criteria.
- Some Canadians needed to ensure their 2021 tax return was filed for them to be eligible.
- The CRA cautioned that many sites circulating claims of a new Grocery Rebate beyond 2023 were scams, because the Grocery Rebate is no longer available as an ongoing program.
- Because eligibility used older tax data (2021), some households might see mismatch between their current income and rebate amount.