We may earn money or products from the companies mentioned in this post.
What is the grocery discount in Canada?
Inflation in Canada hit a significant peak of 8.1% in June 2022, pushing up consumer prices for everything from liquid soap to lumber. And in the last 12 months alone, food prices are up 8.9%, a statistic that won’t shock anyone who’s bought lettuce since last summer. This is where the grocery discount comes into play.
Canada’s grocery rebate, introduced in the federal government’s 2023 budget, is a one-time payout to 11 million low- and modest-income Canadians and is intended to provide some financial relief to people struggling to make ends meet. The payment is an increase in the maximum Goods and Services Tax/Harmonized Sales Tax (GST/HST) credit to which an individual is entitled – the increase is known as a grocery rebate.
Who gets the grocery discount?
The discount is available to individuals with a net income of less than $32,000 and families with a net income of less than $38,000. Since the refund will count as part of your GST/HST credit, you must be a Canadian resident and have filed your 2021 tax return. The refund amount is calculated based on your Adjusted Net Family Income for 2021 and your “Family Situation” in October 2022.
How much do I get from the food refund?
The amount you may be entitled to depends on your net income and the amount you receive as a GST/HST credit. The food refund is double the amount of credit you received in January. The maximum amount, rounded to the nearest dollar, is US$153 per adult, US$81 per child and US$81 for the single supplement.
That means couples with two children can get up to $467, single Canadians with no children up to $234, and seniors up to $225.
When is the grocery discount paid out?
The food refund will be paid out along with the July GST/HST credit on July 5, 2023. It is done automatically by direct deposit or government check.
How do you apply for the grocery discount?
You do not have to! If you are eligible and have submitted your 2021 taxes, you will receive the payment automatically. If you haven’t filed your tax return yet, you can do so now – even if you don’t have to report income for 2021.
If you’re looking for something extra to make ends meet, look forward to a slightly higher GST/HST credit for July.
