To address rising food prices, the Canada Revenue Agency (CRA) has approved a new grocery rebate for July 2025, offering up to $978 in tax-free relief to low- and moderate-income households.
This one-time payment is a strategic move to help Canadians manage the burden of grocery inflation, which remains a pressing issue across the country.
Unlike past temporary benefits, this rebate is integrated into the family support credit framework, ensuring fast and automated delivery to eligible recipients.
Who Qualifies for the July 2025 Grocery Rebate?
Eligibility is based on 2024 income tax filings and household size. If you were eligible for the GST/HST credit in July 2025, you’ll automatically receive the grocery rebate—no application required.
| Household Type | Maximum Rebate Amount (CAD) |
|---|---|
| Single individual | $234 |
| Single parent with one child | $387 |
| Couple with two children | $978 |
| Senior individual | $255 |
To receive the payment:
- Your 2024 tax return must be filed and assessed
- You must meet the CRA’s income eligibility thresholds
- Your banking or mailing information should be up to date in CRA My Account
How the Rebate Supports Canadians Amid Food Inflation
With grocery prices up 9% year-over-year, many households are struggling to meet basic needs. The $978 grocery rebate provides crucial relief to offset rising costs of food, baby formula, dairy, grains, meat, and produce.
Key features of the rebate:
- Non-taxable (won’t reduce other benefit entitlements)
- Does not affect Canada Child Benefit, GST/HST credit, or provincial supports
- One-time direct deposit (or cheque) starting mid-July 2025
- Designed to act as a top-up for families already receiving other supports
This approach ensures timely, targeted aid to Canadians feeling the impact of sustained food inflation and ongoing economic uncertainty.
Important Steps Before July 2025
To ensure your eligibility and receive the payment without delay, take the following steps:
- File your 2024 income tax return immediately if not already submitted.
- Update marital status or dependents with CRA to reflect current household structure.
- Log in to CRA My Account to verify:
- Direct deposit info
- Mailing address
- Benefit eligibility
Canadians not enrolled in direct deposit will receive cheques, which may arrive 7–10 business days after the deposit start date.
There is no separate application for this rebate. CRA will issue payments automatically based on your tax data.
Why the Grocery Rebate Matters in 2025
This one-time payment may not fix the root causes of inflation, but it delivers immediate, practical assistance when families need it most.
For a family of four, $978 can cover:
- 1–2 weeks of grocery essentials
- Utility or internet bills
- Back-to-school expenses
- Emergency household needs
With the CRA streamlining the process, most recipients will get their rebate by late July, offering a cushion amid record-high food costs.
The Canada Grocery Rebate July 2025, offering up to $978, is a meaningful financial support measure that directly targets food affordability for low- and moderate-income households.
By leveraging existing CRA systems and basing payments on 2024 tax filings, the rebate ensures broad and equitable coverage without the hassle of paperwork.
With inflation continuing to squeeze household budgets, this rebate stands as a clear example of responsive public policy aimed at easing day-to-day financial stress for Canadians.
FAQs
Do I need to apply for the July 2025 grocery rebate?
No. If you qualify based on your 2024 tax return, the CRA will automatically issue the payment.
When will the $978 grocery rebate be paid out?
Direct deposits start mid-July 2025, with paper cheques arriving by the end of July for non-digital recipients.
Will this rebate affect my other benefits?
No. The rebate is non-taxable and will not impact other federal or provincial benefit payments.