Facing a 9% year-over-year spike in grocery prices, the Canadian government is launching a $978 Grocery Rebate in July 2025. Administered by the Canada Revenue Agency (CRA), this targeted support for low- and moderate-income households is part of a broader cost-of-living relief program.
It’s issued automatically—no need to apply—based on your 2024 tax return. Here’s everything you need to know to prepare.
Why the Grocery Rebate Matters
- Soaring food prices: Families are increasingly struggling with everyday grocery bills.
- Strategic timing: The rebate lands in mid-July — perfect with summer budget demands.
- Targeted support: Maximizes relief for those most impacted, including families with two children.
This initiative builds on the one-time Grocery Rebate introduced as part of Budget 2023 and aligns with other affordability-focused measures.
Who Qualifies?
Eligibility depends on your 2024 adjusted family net income, household type, and tax filing status. The CRA evaluates eligibility without requiring additional applications.
According to CRA-aligned projections, here are the maximum rebate amounts:
| Household Type | Max Rebate ($CAD) |
|---|---|
| Single individual | $234 |
| Single parent with 1 child | $387 |
| Couple with 2 children | $978 |
| Senior individual | $255 |
To receive the maximum $978, your household must include two children and meet the low-to-moderate income threshold.
How the Rebate Is Paid
- No application needed: Filing a 2024 tax return is sufficient.
- Payment methods:
- Direct deposit (fastest)
- Mailed cheques (for others)
- Timing: Expect payments in mid-July 2025.
Ensure your CRA My Account is updated with correct banking and mailing information.
Impact on Other Benefits
The rebate is tax-free and won’t reduce other federal or provincial benefits:
- Canada Child Benefit (CCB) remains unaffected
- GST/HST credit payments stay the same
It acts as an extra boost—stackable with existing income supports.
How to Prepare
Stay ready for your rebate by:
- Filing your 2024 tax return on time
- Verifying marital status, dependents, and other personal details with CRA
- Setting up or confirming direct deposit
- Updating your address and banking info in CRA My Account
- Monitoring CRA announcements in June–July
These steps help ensure a seamless, on-time rebate arrival.
Rebate by Household
| Household Type | Qualification Criteria | Max Rebate |
|---|---|---|
| Single individual | One adult, low income | $234 |
| Single parent + 1 child | One adult, one dependent, low income | $387 |
| Couple + 2 children | Two adults, two dependents, low income | $978 |
| Senior individual | Aged 65+, low income | $255 |
The $978 Grocery Rebate in July 2025 offers meaningful financial relief as Canadians continue to face high grocery costs.
Automatically delivered to eligible low- to moderate-income households—from singles to families with children and seniors—this rebate will ease the burden without affecting existing benefits.
To ensure you receive the full amount: file on time, update your CRA account, and watch for payment around July. This rebate isn’t a permanent fix, but it’s a strong and timely lifeline during challenging times.
FAQs
Do I need to apply to get the July 2025 Grocery Rebate?
No—if you filed your 2024 tax return and qualify based on income and household size, the CRA will issue the payment automatically.
Is the rebate taxable or does it affect other benefits?
The rebate is tax-free and does not reduce other federal or provincial benefits.
When will the payments arrive?
Rebates will begin mid-July 2025. Direct deposit recipients typically receive it first, while mailed cheques may take longer.