Canada’s carbon tax, also known as the Fuel Charge, imposes a fee on the carbon content of fuels to reduce greenhouse gas emissions. As of 2023, the carbon tax is CA$65 per tonne of CO2, with plans to increase it to CA$170 by 2030.
To help residents of New Brunswick, Ontario, Alberta, Saskatchewan, and Manitoba cope with this cost, the Canadian Revenue Agency (CRA) provides a Carbon Tax Rebate.
This rebate is a tax-free amount distributed quarterly to eligible taxpayers, aiming to offset the federal pollution pricing cost.
Carbon Tax Rebate 2024 Eligibility
Residents of the specified provinces qualify for the Carbon Tax Rebate, officially termed the Climate Action Incentive Payment (CAIP), which is provided in four equal installments.
The rebate is designed to cover the additional cost burden due to the carbon tax, including a basic amount and an extra for those in small and rural communities.
Criteria
- Residency: Must be a resident of New Brunswick, Ontario, Alberta, Saskatchewan, or Manitoba.
- Tax Status: Should be a taxpayer with CRA.
- Age: Must be 19 years or older, or fulfill certain conditions if under 19.
If you meet these criteria, you are eligible for the rebate. The CAIP also accounts for additional household members, increasing the amount accordingly.
Cheque Dates
Starting from July 2022, the CRA switched from annual to quarterly payments for the Carbon Tax Rebate.
Residents of Newfoundland and Labrador, Prince Edward Island, and Nova Scotia receive the rebate in three equal installments in the first year and four quarterly payments thereafter, starting from July 1, 2023.
Payment Amount
The rebate amount varies based on family status and province. Here’s a breakdown of the Climate Action Incentive Payment for the 2022 base year:
| Province | Individual | Couple | Per Child (under 19) | First Child (Single Parent) |
|---|---|---|---|---|
| Ontario | $488 | $244 | $122 | $244 |
| Alberta | $772 | $386 | $193 | $386 |
| Saskatchewan | $680 | $340 | $170 | $340 |
| Manitoba | $528 | $264 | $132 | $264 |
| Nova Scotia | $124 | $62 | $31 | $62 |
| New Brunswick | $92 | $46 | $23 | $46 |
| Newfoundland and Labrador | $164 | $82 | $41 | $82 |
| Prince Edward Island | $120 | $60 | $30 | $60 |
For rural inhabitants, an additional 10% supplement is provided, enhancing the rebate amount. Note that the amounts shown for Nova Scotia, Newfoundland, and Labrador do not include this supplement.
Payment Dates
The Carbon Tax Rebate for 2024 will be distributed quarterly on the 15th of April, July, October, and January. If the 15th falls on a weekend or federal holiday, payments are made on the last business day before the 15th.
For instance, if October 15 is a Sunday, the payment will be made on the following Monday.
Payments are made via direct deposit if selected. If there is a tax debt, the rebate amount will be adjusted accordingly.
Missing Payments
If you do not receive your rebate within ten days of the scheduled date, contact the CRA at 1-888-863-8662 for benefit debt or 1-888-863-8657 for tax return debt inquiries.
FAQs
Who is eligible for the Carbon Tax Rebate?
Residents of specified provinces, aged 19 or older, or meeting certain conditions if under 19.
When are the rebate payments made?
Quarterly on April 15, July 15, October 15, and January 15.
How much is the rebate for individuals in Ontario?
$488 per year, paid quarterly.
What should I do if I miss a payment?
Contact CRA within ten days after the payment date.
Can the rebate be adjusted for tax debts?
Yes, any rebate amount will be adjusted for existing tax debts.
