Canadians will get the new government grocery rebate soon
The new government grocery rebate will land in eligible Canadians’ bank accounts soon.
In January, Prime Minister Mark Carney announced a top-up to the GST credit, rebranding it as the Canada Groceries and Essentials Benefit.
The legislation, which aims to offset soaring grocery costs for over 12 million low and modest-income Canadians, received royal assent on Feb. 12. This means Canadians will be getting the scheduled grocery rebate soon.
According to Canada’s Department of Finance, the new benefit will be indexed to inflation and builds on the existing GST Credit, providing $11.7 billion in additional support over six years.
“The new Canada Groceries and Essentials Benefit puts more money back in people’s pockets in northern and remote communities, and that means practical help with day-to-day expenses for the seniors, families and workers who need it most,” Buckley Belanger, secretary of state for rural development, stated while highlighting the new benefit to the Whitehorse community on Thursday.
How does the grocery rebate work?
ungvar/Shutterstock
The grocery rebate will implement two measures to help with rising food costs.
First, it will provide a one-time top-up payment equal to a 50 per cent increase in the annual 2025 to 2026 value of the GST credit. This will be paid as early as possible this spring, and no later than June 2026. Ottawa says this will provide $3.1 billion in immediate assistance to Canadians who currently receive the GST credit.
The second measure is increasing the value of the Canada Groceries and Essentials Benefit by 25 per cent for five years, starting in July 2026. According to the government, this boost will deliver $8.6 billion in additional support over the 2026-2027 to 2030-2031 period to 500,000 new individuals and families.
Altogether, the federal government says this will provide up to an additional $402 to a single individual without children, $527 to a couple, and $805 to a couple with two children.
“At these levels, Canada’s new government will be offsetting grocery cost increases beyond overall inflation since the pandemic,” stated the Department of Finance.
Once the one-time top-up payment is made this spring, eligible families and individuals will get the regular payments under the Canada Groceries and Essentials Benefit as of July 2026.
The benefit will be paid quarterly and will be in addition to other existing benefits like the Canada Child Benefit.
How much could you get from the Canada Groceries and Essentials Benefit?
The government gave examples of how much you could receive from the grocery rebate depending on your family type and income.
A single senior with $25,000 in net income would receive a one-time top-up of $267 plus a longer-term increase of $136 for the 2026 to 2027 benefit year (total increase of $402). In total, they would receive $950 for the 2026 to 2027 benefit year (including the top-up), and about $700 annually for the next four years.
A couple with two children with $40,000 in net income would receive a one-time top-up of $533 plus an increase of $272 for the 2026 to 2027 benefit year (total increase of $805). In total, they would receive $1,890 for the 2026 to 2027 benefit year (including the top-up), and about $1,400 annually for the next four years.
If you’re eligible for the grocery rebate, you won’t need to apply for additional payments.
However, you should file your 2024 tax return (if you haven’t already) to be able to receive the top-up. You’ll also need to file your 2025 tax return to get the increased Canada Groceries and Essentials Benefit payments as of July 2026.
For more information, check out Finance Canada’s site.