Canada’s $1,000 Grocery Rebate Coming in August 2025 – Eligibility & CRA Deposit Dates

$1,000 Grocery Rebate: At a time when prices of everyday necessities, especially groceries, are constantly rising in Canada, the government’s announcement of a potential $1,000 grocery rebate in 2025 has given a ray of hope to millions of low- and middle-income families in the country. Administered by the Canada Revenue Agency (CRA), this rebate is a one-time, tax-free payment intended to provide financial relief to citizens affected by rising inflation and the cost of living.

This rebate was initially implemented in July 2023 and can help households with a maximum of $628 worth of assistance. With food inflation failing to ease in 2023 and 2024, and still being an issue in 2025, demand and speculation as to whether a second waterfall quarter of the government would create a second grocery rebate has increased.

Why is the grocery rebate important in 2025?

According to a report by Statistics Canada, food inflation reached 9.8% in 2023, and essential items such as milk, vegetables, fruit and meat are still out of reach for the common man. Although overall inflation came down to 2% in 2024, food prices still remain high.

If the grocery rebate of up to $1,000 is approved, it will directly benefit the following groups:

• Low-income families struggling to afford everyday needs.
• Seniors living on fixed incomes.
• Single parents and students with limited resources.
• People living with a disability who rely on government assistance.

This rebate could be part of Canada’s broader “affordability measures”, such as the GST/HST rebate and the $250 Working Canadians Rebate, which applies from December 2024 to February 2025.

What will be the eligibility criteria?

Although the $1,000 grocery rebate has not yet been officially announced by the CRA, if it is approved, its eligibility criteria will likely be the same as the 2023 plan:

1. Residentship
   • You must be a resident of Canada for tax purposes as of August 2025. If you have been in prison for more than 90 days or fall under diplomatic immunity, you will not be eligible.
     
2. Age
   • You must be at least 19 years old as of the June before August 2025. If you are under 19 but married or living with a child, you may be eligible.
     
3. Enroll in the GST/HST Credit
   • You must be eligible to receive the GST/HST Credit for the 2024 tax year. This means you must file a 2024 tax return on time.
     
4. Income limits
   • Single individuals: With an adjusted net income of less than $45,000.
   • Families: With a total family net income of less than $65,000.

The rebate amount may be higher if there are children, elderly or disabled members in the family.

5. Tax return filing
   • It will be mandatory to submit the 2024 tax return on time (April 30 or June 15 for self-employed).
     
6. Other information
   • This rebate is a one-time tax-free payment and will not affect CCB or other benefits.

How to prepare for the rebate?

You will not have to apply separately to receive the rebate since the CRA will automatically give it to qualified GST/HST beneficiary. However, you can do some things at this point:

1. File tax returns on time
   • You will be eligible depending on your 2024 tax-return. That is why make it on time with the assistance of the CRA portal or a tax professional.
2. Update CRA My Account
   • Keep your bank details, address, marital status and family information updated.
3. Activate direct deposit
   • This is the fastest and safest way to get paid. If you have not activated it, you will get paid by check which may be delayed.
4. Check GST/HST status
   • Visit CRA My Account to make sure you are eligible for GST/HST credit.
5. Beware of fraud
   • CRA never asks for personal information by email, call or text. Report suspicious messages.

What could be the payment date and method?

If the $1,000 grocery rebate passes, it could be distributed on August 5, 2025, which coincides with the third date of GST/HST credit.

• Direct deposit: The fastest way, money will reach bank account on August 5.
• Check by mail: If not direct deposit, a check will be sent, which can take 3–5 business days.

Note: If you don’t receive a payment by the end of August, check CRA My Account or call 1-800-959-8281.

Is the rebate confirmed? Rumors vs. rumors

1. No official confirmation
   • The CRA has made it clear that the rebate of 2023 was a one-time assistance, and the plan of 2025 has not been signed up so far.
2. Other relief plans
   • GST/HST Rebate (Dec 2024 – Feb 2025): Tax rebate on essential goods.
   • Working Canadians Rebate ($250): Relief for middle-income groups.
   • Ontario Taxpayers Rebate: $200 per person and $200 per child to eligible individuals.
3. Food inflation continues
   • According to the Food Price Report 2025, essential commodities will still remain expensive.
4. Beware of rumours
   • Fake claims of $628 or $978 are going viral on social media, which have no official confirmation.

How to make the most of the grocery rebate?

If this scheme is approved, you can make the most of it by following these measures:

• Prioritise essential expenses: Use this money for food, bills or paying off debts.
• Combine it with other benefits: Such as CCB, Workers Benefit or provincial schemes.
• Focus on budgeting: Buy essential items at discounts and offers from local stores.

Conclusion

Canada Grocery Rebate 2025 is a possible economic relief plan which has come out as a beacon of hope to the low and medium level income citizens of the nation. With the increasing food inflation and cost of living, should this plan pass, millions of families will be able to spend on the things they need on a day to day basis. Nonetheless, this rebate is not yet accepted by the Canada Revenue Agency (CRA). The government has not officially confirmed anything though based on the previous intentions, as well as, the current financial situation, it may not be entirely excluded.

It is important for all citizens to file their tax returns on time, keep CRA My Account updated, and be cautious of any rumors or fake claims. If this rebate is implemented, there will be no need to apply separately for it — eligible beneficiaries will automatically receive the payment.

Ultimately, schemes like the grocery rebate are not just financial assistance, but a symbol of the government’s responsibility towards its citizens. So get all the information related to this scheme only from official sources and keep yourself prepared for the times to come.

FAQs On $1,000 Grocery Rebate