As Canadians continue to manage inflation and higher living costs, the Canada Revenue Agency (CRA) is rolling out an enhanced Grocery Rebate payment of up to $978 in May 2025. This targeted relief aims to help low- and modest-income households cope with the persistent rise in grocery prices and essential living expenses.
What Is the Grocery Rebate?
Originally introduced as a one-time support measure in 2023, the Grocery Rebate has returned due to continued economic pressures. The $978 payment in 2025 is not a flat rate for everyone—it varies depending on household income and family composition. The CRA disburses it alongside the GST/HST credit payment to streamline delivery.
Who Is Eligible for the $978 Grocery Rebate in May 2025?
Eligibility for the rebate hinges on your 2023 tax return, which must be filed and assessed by the CRA. Here’s a breakdown of the primary criteria:
- You must be a Canadian resident for tax purposes
- Your adjusted family net income must be below a certain threshold (typically under $39,000 for individuals and up to $65,000 for families)
- You must have qualified for the GST/HST credit for the July 2024–June 2025 benefit year
The CRA uses income data from 2023 to determine how much each person or family receives in May 2025.
How Much Will You Receive?
The maximum payment amounts are based on household size and family status. Here’s a simplified table showing estimated Grocery Rebate payments for May 2025:
| Household Type | Estimated Rebate Amount (May 2025) |
|---|---|
| Single individual (no children) | Up to $234 |
| Couple with no children | Up to $306 |
| Single parent with 1 child | Up to $387 |
| Couple with 2 children | Up to $628 |
| Family with 3 or more children | Up to $978 |
Note: These figures represent the upper limits. Actual amounts depend on your income level and tax filing status.
When Will the CRA Send the $978 Grocery Rebate?
The CRA has confirmed that eligible Canadians will receive their Grocery Rebate on May 27, 2025, the same day as the scheduled GST/HST credit payment.
Those who have signed up for direct deposit can expect funds to appear in their bank accounts within one business day. Paper cheque recipients may need to wait up to 10 business days for delivery.
How to Check If You’re Getting the Rebate
To verify your eligibility and payment status:
- Log in to your CRA My Account
- Look for the “Grocery Rebate” section under “Benefits and Credits”
- You can also call the CRA’s automated service or speak with an agent
Make sure your mailing address and direct deposit info are current to avoid delays.
What to Do If You Don’t Receive It
If you believe you’re eligible but haven’t received the rebate by mid-June 2025:
- Double-check your 2023 tax return filing status
- Confirm eligibility for the GST/HST credit
- Contact CRA support to investigate any discrepancies or processing issues
Why the Grocery Rebate Matters in 2025
Even as inflation trends have started to stabilize, grocery prices remain stubbornly high across Canada. According to recent consumer price index data, food prices in early 2025 are still 4.6% higher compared to the previous year.
The Grocery Rebate is one of the few federal responses specifically targeting food affordability. It’s not a permanent program, but its recurrence signals ongoing concern from the federal government over cost-of-living pressures.
Additional Relief Programs to Consider
Aside from the Grocery Rebate, other federal and provincial programs may offer assistance in 2025:
- Canada Child Benefit (CCB) – For families with children under 18
- GST/HST Credit – Paid quarterly to low/moderate-income Canadians
- Provincial assistance programs – Vary by region (e.g., Alberta Affordability Payments)
Check your CRA account regularly to stay informed of any new or renewed support measures.
Conclusion
The $978 Grocery Rebate arriving in May 2025 is a crucial support for Canadians feeling the pinch of ongoing food inflation. Whether you’re a single adult or a family of five, this rebate can provide some breathing room in your budget. Make sure your tax filings are up to date, check your CRA account, and follow up if you don’t see the payment by early June.
FAQ
Who qualifies for the $978 Grocery Rebate in May 2025?
To qualify, you must have filed a 2023 tax return, be eligible for the GST/HST credit for 2024–2025, and meet income thresholds set by the CRA.
Is the Grocery Rebate a taxable benefit?
No, the Grocery Rebate is non-taxable and does not need to be reported as income.
Will this rebate be issued again later in 2025?
As of now, this is a one-time payment. However, further rebates may be introduced depending on economic conditions and government decisions.
Can students or seniors receive this rebate?
Yes, if their income and residency status meet CRA eligibility criteria.
What happens if I miss the May 2025 payment?
If you file late or update your tax return after the payment date, CRA may still issue the rebate retroactively, provided you meet the eligibility requirements.
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