With grocery prices continuing to rise in 2025, the federal government has confirmed a new one-time rebate of up to $628, set to be distributed in September 2025.
Administered by the Canada Revenue Agency (CRA), this initiative is aimed at low- and middle-income households, helping them cope with the burden of inflation on essential food and household supplies.
For millions of Canadians, this rebate represents more than just financial aid—it’s an opportunity to stabilize household budgets during a period of economic uncertainty.
Why the Grocery Rebate Matters in 2025
The $628 Grocery Rebate comes at a time when food insecurity is on the rise across Canada. Essential items like milk, bread, fruits, and vegetables have become more expensive, straining families, seniors, and workers with modest incomes.
This rebate is designed to:
- Offset rising food costs at a time of high inflation.
- Support seniors and low-income families most vulnerable to financial stress.
- Boost consumer spending, which in turn helps the economy.
- Provide targeted relief just ahead of the fall season, when expenses for families—like back-to-school costs—are typically higher.
How Much Is the Grocery Rebate in September 2025?
The maximum benefit under this rebate is $628, but the amount varies based on family size and income. The CRA calculates eligibility using 2024 tax return information.
| Household Type | Estimated Maximum Rebate |
|---|---|
| Single individual (no children) | $234 |
| Couple (no children) | $306 |
| Family with 1 child | $467 |
| Family with 2 children | $628 (maximum) |
| Seniors (living alone) | Higher likelihood of full rebate due to fixed incomes |
This structure ensures that larger families and low-income seniors receive stronger support.
Eligibility Rules for the $628 Grocery Rebate
The CRA has set clear eligibility criteria, ensuring payments are directed to those most in need. To qualify, you must:
- File your 2024 income tax return before the deadline.
- Be a Canadian resident for tax purposes in 2025.
- Have a low- or middle-income household, based on CRA thresholds.
- Meet family composition and dependent rules.
No separate application is required—the CRA will automatically determine eligibility from tax records.
Payment Dates – September 2025
The CRA has announced that payments will be distributed in September 2025, with the following schedule:
- Direct Deposit: September 13, 2025 (arrives within 1–2 business days).
- Mailed Cheques: Sent the same day but may take up to 10 business days to arrive.
Beneficiaries are encouraged to sign up for CRA direct deposit to avoid delays and receive payments securely.
How Payments Will Be Made
Payments will be issued using the same methods as other federal benefits:
- Direct deposit – Fastest, credited straight into your bank account.
- Cheque by mail – Slower, but available if direct deposit is not set up.
It is essential to update your banking and mailing details in your CRA My Account to prevent delays.
Impact on Canadian Families
For households, this rebate provides critical breathing space:
- Covers grocery expenses without cutting into rent or utility budgets.
- Helps families maintain healthier diets for children and seniors.
- Reduces reliance on loans or credit cards for daily needs.
- Provides financial room for school supplies, transportation, or emergencies.
Criticism and Challenges
While the rebate is welcomed, some concerns remain:
- One-time support may not solve long-term affordability issues.
- Middle-income households just above the cut-off may miss out.
- Some experts caution that rebates can indirectly fuel inflation.
Nonetheless, the rebate has been praised as a timely intervention for struggling Canadians.
Government’s Position
The federal government describes the September 2025 grocery rebate as part of a wider affordability strategy, alongside housing support, childcare subsidies, and energy rebates.
Officials emphasize that this rebate is targeted relief—not a permanent program—but it is expected to provide immediate help for millions of households.
The $628 Grocery Rebate in September 2025 is a lifeline for Canadian families and seniors hit hardest by inflation. By targeting support at low- and middle-income households, the CRA ensures relief goes directly to those who need it most.
Filing taxes on time, updating CRA details, and signing up for direct deposit are the best ways to ensure you receive your payment without delays.
FAQs
How do I apply for the $628 Grocery Rebate?
No application is required. The CRA automatically determines eligibility based on your 2024 tax return.
When will payments be issued?
Payments will be deposited on September 13, 2025 via direct deposit, with mailed cheques arriving within 10 business days.
Who qualifies for the maximum $628 rebate?
Families with two or more children and seniors with low incomes are most likely to receive the maximum amount.