As food inflation continues to hit Canadian families, the Canada Revenue Agency (CRA) is stepping in with direct financial relief.
Starting mid-July 2025, eligible low- and moderate-income Canadians will receive a grocery rebate of up to $978. This tax-free payment is designed to help cover rising grocery costs and comes at a time when inflation is still squeezing household budgets.
Let’s break down who qualifies, how much they will receive, and how to prepare for the payment in July.
What is the Grocery Rebate in July 2025?
The Grocery Rebate Canada July 2025 is a one-time payment disbursed through the CRA to assist eligible households with the high cost of food.
This rebate is non-taxable and does not affect other federal or provincial benefits. It is part of the government’s broader cost-of-living response under the family support credit framework.
Unlike previous programs that required applications, this rebate will be automatically issued to those who qualify based on their 2024 income tax returns.
Who Qualifies for the Grocery Rebate in July 2025?
Eligibility is based on family size and net income reported on your 2024 tax return. The rebate is intended to support low to moderate-income Canadians, and the amount varies depending on your circumstances.
To qualify, ensure that:
- Your 2024 tax return has been filed and assessed.
- Your income is within CRA-approved thresholds.
- Your family status (single, couple, number of children, etc.) is accurately reported to the CRA.
If eligible, you do not need to apply. The CRA will automatically issue payments to your registered bank account or by cheque.
Grocery Rebate Payment– July 2025
| Household Type | Maximum Rebate (CAD) |
|---|---|
| Single individual | $234 |
| Single parent with one child | $387 |
| Couple with two children | $978 |
| Senior individual | $255 |
Payments will start rolling out in mid-July 2025, with direct deposits arriving faster than mailed cheques. Ensure your CRA My Account details are up to date to avoid delays.
Why This Rebate Matters in 2025
With grocery prices up over 9% year-over-year, many Canadians are struggling to meet daily food costs. The July 2025 CRA grocery rebate is not just financial relief—it represents government responsiveness to real-time economic conditions.
Key highlights:
- Non-taxable payment
- Does not affect other benefits (e.g., GST/HST credit, Canada Child Benefit)
- Supports families, seniors, and single individuals alike
- Helps bridge the grocery affordability gap
The rebate also complements other federal relief measures targeting cost-of-living challenges in 2025, including indexed benefit increases and credits.
Important Steps to Take Before July 2025
To receive the rebate smoothly, consider these critical actions:
- File your 2024 tax return (if not already done).
- Update marital status or dependent information in CRA records.
- Confirm your banking info in CRA My Account for direct deposit.
- If you’ve moved, ensure your mailing address is current.
You do not need to apply for the rebate—it will be automatically sent to qualified recipients.
The CRA Grocery Rebate in July 2025 offers timely relief to help Canadians cope with rising food costs. With payments up to $978, it supports families, seniors, and individuals most affected by inflation. Ensure your tax return is filed and CRA details are up to date to receive this benefit.
FAQs
When will the CRA send the grocery rebate in July 2025?
The payment will begin to be issued in mid-July 2025, with direct deposits arriving faster than mailed cheques.
Do I need to apply for the $978 rebate?
No, the rebate is automatic for those who filed their 2024 tax return and meet income and family criteria.
Will this rebate affect my GST/HST credit or other federal benefits?
No, the rebate is non-taxable and does not impact other benefits like the Canada Child Benefit or GST/HST credit.