Millions of Canadians will receive a one-time ‘grocery rebate.’ Here’s who is eligible and how you can receive payment

Millions of Canadians will receive a one-time “grocery rebate” from the Canada Revenue Agency on Wednesday.

The rebate, essentially a doubling of the GST/HST tax credit, was approved in the latest federal budget. It’s intended to offset the cost of rising grocery prices but can be applied to more than just food bills.

Costing $2.5 billion, the initiative will impact roughly 11 million low- and modest-income Canadians and families.

Here’s what you need to know about the rebate, including whether you’re eligible, how you can receive it and what you can spend it on.

Who’s eligible to receive the rebate?

The rebate is available to those are already eligible for GST/HST credits: a non-taxable amount paid out four times a year to low- or modest-income individuals and families to offset the GST/HST taxes that they pay.

Individuals do not need to apply for the credit, but are required to have filed their 2021 tax return, even if they reported no income for that year.

You will receive the rebate if you were entitled to receive the GST/HST tax credit for January 2023.

However, the government notes that some people may be entitled to the “grocery rebate” but not the GST/HST credit for July.

“The Grocery Rebate is calculated based on your 2021 tax return, but the next quarterly GST/HST credit payment in July 2023 is calculated based on your 2022 tax return,” the government said on its website.

How will the payment be deposited?

The rebate will be issued automatically to those eligible, either by cheque or direct deposit, through the Canada Revenue Agency. It will be delivered alongside the next quarterly GST/HST credit payment.

The amount you will receive will be double your GST/HST credit payment from January 2023. It’s “calculated based on your family situation in January 2023 and your 2021 adjusted family net income,” the government noted.

How much am I eligible to receive?

If you are single, you can receive up to the following amounts:

If you are married or have a common-law partner, you could be eligible for the following maximum payments:

How can I use the credit?

While the credit being labelled as a “grocery rebate” by the federal government, it can be used for anything.

The measure is similar to the temporary boost to the GST credit that the government offered last year to mitigate increasing cost-of-living concerns.

SHARE: