Here’s What You’ll Get from the Canada Carbon Rebate Starting April 15th

Starting on April 15th, 2024, the Canada Carbon Rebate (CCR) program began making payments to eligible individuals and households in the eight provinces that rely on the federal fuel charge and carbon tax system — also known as pollution pricing.

On the program’s first anniversary, April 15th, 2025, the next quarterly CCR payments — designed to minimize the carbon tax’s impact on consumers — will be mailed out as checks or direct deposited in bank accounts across the country.

Carbon taxes in Canada have a long and controversial history, with the first being a provincial program put in place by the BC government in 2008.

Whether you agree that federal or provincial carbon pricing initiatives are necessary or effective doesn’t change the fact that they significantly impact all Canadian individuals and businesses that purchase fossil fuels — like heating oil or gasoline.   

Read on to learn more about the CCR, whether you or your family is eligible, and how big a rebate you can expect.   

What Is the Canada Carbon Rebate?

The Canada Carbon Rebate (CCR) is a tax-free payment designed to help eligible individuals and families offset the cost of federal pollution pricing.

Formerly known as the Climate Action Incentive (CAI) from 2019 – 2020 and as the Climate Action Incentive Payment (CAIP) from 2021 to 2023, it was renamed the Canada Carbon Rebate in 2024, with increased benefits and significant changes to eligibility. 

According to the Government of Canada, carbon pricing is designed to:

“reduce emissions and encourage innovation.

It encourages reductions across the economy while giving households and businesses the flexibility to decide when and how to make changes. And it creates incentives for Canadian business to develop and adopt new low carbon products, processes, and services.”

Carbon pricing is administered at the federal level in some provinces and at the provincial level in others.

The Federal Carbon Tax acts as a “backstop” to ensure that all provinces and territories meet stringent requirements for imposing a pollution tax, even if the details differ significantly by location.

The Canada Carbon Rebate is only available in provinces that impose the Federal Carbon Tax, although provinces that administer their own programs may have similar rebates in place.

Carbon pricing targets consumers and businesses, albeit in different ways.

Every individual, household, or business that buys gasoline or diesel to run their vehicles or natural gas or heating oil for heat is subject to a carbon levy (fuel charge) added to all purchases of fossil fuels.

The carbon levy is included in the fuel price, sometimes as a visible surcharge — particularly at the pump — or as an unitemized component of the retail price you pay for heating fuel on your energy bills.

The carbon levy is charged as a fixed amount per unit volume of fuel — not as a percentage — meaning that even if the gas price goes up 50¢ per litre at the pump, the carbon levy remains the same. 

Below is an example of the federal fuel charge rates for specific types of fuels from 2023 through 2030.

Federal Fuel Charge Rates, 2023 – 2030

(Source: Government of Canada)

Even at a glance, it’s easy to see that the fixed fuel rate charges increase significantly each year.

For example, the federal fuel charge for gasoline was 14.31¢ per liter in 2023 and will increase progressively each year to 37.43¢ in 2030 — a jump of over 160% or 2.6x.

Pollution pricing and fuel surcharges are the subject of much debate.

If you believe that reducing greenhouse gas emissions is an environmental necessity, raising prices to discourage the consumption of fossil fuels makes sense.

However, many also argue that federal fuel charges are a regressive tax that disproportionately impacts lower-income individuals and households, particularly in rural communities where people may travel long distances to work.

The Canada Carbon Rebate is designed to mitigate the negative impact of carbon pricing on consumers. 

How Much Will You Get From Canada’s Carbon Rebate?

To be eligible for the CCR, individuals and families must be residents of a province where the federal carbon tax applies.

The rebate is paid in advance at the beginning of each quarter to help offset additional costs from carbon pricing before they occur. 

The rebate varies significantly by location in the eight provinces currently subject to federally administered carbon pricing.

Quarterly Canada Carbon Rebate Amounts for 2024-25, as specified by the Minister of Finance

Category	AB	MB	ON	SK	NB	NS	PEI*	NL
First Adult	$225	$150	$140	$188	$95	$103	$110	$149
Rural	$270	$180	$168	$225.60	$114	$123.60	$110	$178.80
Second Adult	$112.50	$75	$70	$94	$47.50	$51.50	$55	$74.50
Rural	$135	$90	$84	$112.80	$57	$61.80	$55	$89.40
Each Child	$56.25	$37.50	$35	$47	$23.75	$25.75	$27.50	$37.25
Rural	$67.50	$45	$42	$56.40	$28.50	$30.90	$27.50	$44.70
Family of 4	$450	$300	$280	$376	$190	$206	$220	$298
Rural	$540	$360	$336	$451.20	$228	$247.20	$220	$357.60

For example, an eligible family of four in Alberta can receive $1,800 annually from the CCR compared to a family of four in Ontario, which will receive only $1,120 yearly (in quarterly payments) — a decline of almost 38%. 

The Federal Government sets the CCR rates for each province based largely on the revenue the carbon tax generates within its borders and the average fuel consumption.

The Federal Government states, “All money (proceeds) from the federal fuel charge is returned to the province or territory where it is collected. The Government of Canada does not keep any direct money from pollution pricing.”

About 90% of carbon tax revenue is returned directly to residents of the province where it was collected, with some benefits available to small businesses and farmers. 

Additionally, individuals and households in rural areas may receive an additional supplementary rebate to help offset higher fuel consumption from transportation, partly due to the lack of public transit options.

Factors That Affect Your Rebate

Aside from your province or territory of residence, numerous other factors can affect your Carbon Credit Rebate.

Filing Income Tax Returns

To be eligible for the Carbon Credit Rebate, you and your spouse or common-law partner (if applicable) must file federal tax returns on time.

Because quarterly CCR payments begin in mid-April, the Canada Revenue Agency (CRA)  recommends filing returns electronically by March 10th for the previous tax year.

If you miss the April payment, it may be included in a later issuance once your return is filed and assessed.

If you or an eligible family member don’t file a federal tax return, you or your household can’t receive CCR payments.

Existing Government Debt

If you owe money to the federal government, the CRA may withhold your Carbon Credit Rebate payments and apply them to “your income tax balances or amounts owing to other federal or provincial government programs.” 

Changes in Your Situation

Numerous changes in your situation or that of a household member can affect your CCR eligibility or the amount of money you will receive.

CRA gives the following examples:

• Move to a different province or territory
• Change in your marital status
• Child reaching the age of 19 (they can claim their own rebate)
• New child in your care
• Change to your child custody agreement
• Death of a recipient
• Confinement to a prison or similar institution for a period of at least 90 consecutive days

You can update changes in status with the CRA here.

Does Everyone in Canada Get a Carbon Tax Rebate?

No. The Canada Carbon Rebate is not available to residents of provinces and territories that administer their own carbon pricing programs, including:

• British Columbia
• Quebec
• Northwest Territories
• Nunavut
• Yukon

In addition to your place of residence, you must meet the following eligibility requirements.

• At least 19 years old in the month before a CRA payment OR
• You’re under 19 and
  • have or had a spouse or common-law partner 
  • are or were a parent, and live(d) with your child
• You or a household member files federal income tax and benefit returns
• Residency status
  • Canadian residents in eligible provinces don’t need to apply for the CCR. You will automatically receive the benefits based on the information you supply on your tax return. You must continue to file tax and benefit returns, even if you have no income to report.
  • Newcomers to Canada must file additional paperwork and meet the eligibility requirements for the Canada Child Benefit (CCB). If you do not meet the CCB requirements, you can submit Form RC151.  
• No outstanding debts with the federal government or specific provincial programs

What Provinces Get the Canada Carbon Rebate?

As of 2025, eligible residents of the following provinces can receive the Canada Carbon Rebate.

• Alberta
• Manitoba
• New Brunswick
• Newfoundland and Labrador
• Nova Scotia
• Ontario
• Prince Edward Island
• Saskatchewan

What To Do if You Don’t Get Your Rebate

The Canada Carbon Rebate is paid out on a fixed quarterly schedule — four times a year — on or about the following dates:

1. April 15th
2. July 15th
3. October 15th
4. January 15th

“Catch-up” payments may be issued on other dates, but this is an irregular occurrence.

For convenience, many people choose to receive their tax refunds via direct deposit. If you do, you’ll receive your CCR payments the same way.

If you receive tax refunds by check, you’ll also receive your CCR payments in the mail but expect a delay of up to 10 business days over a direct deposit.

If you meet all the eligibility requirements and have never received your Canada Carbon Rebate or your quarterly payment hasn’t arrived on schedule, here are the steps you should take.

1. Has Your Banking Information Changed?
   If you receive your tax refunds by direct deposit and you’ve changed banks or closed your account, any CCR payments sent will likely be returned to the CRA.
   
2. Have You Moved?
   If you receive your CCR payments by mail and have moved, your check may have gone astray. If you’ve set up a mail redirect with the Post Office, this can still result in irregular delays. Keep in mind, that if you’ve moved to a new province, your CCR eligibility can be affected.
   
3. Have You Registered for a CRA Account Online?
   CRA My Account allows individual Canadian taxpayers to access information about their accounts, including balances, benefits, and refunds, as well as CCR quarterly payments. Once you register, you can check when and how your CCR rebates were issued or find out why they weren’t. Register for CRA My Account here.
   
4. Call the Canadian Revenue Agency Hotline

The CRA offers a toll-free number for individual taxpayers with 24-hour automated assistance.

Human telephone agents are available on the following schedule.

• Monday to Friday: 6:30 am to 11:00 pm ET
• Saturday: 7:30 am to 8:00 pm ET
• Sunday: Closed
• Closed on public holidays

If you haven’t received the CCR payment as expected, the CRA requests that you wait at least 10 days before contacting the agency. 

Frequently Asked Questions

Final Thoughts

Carbon pollution pricing is a controversial subject in Canada, with passionate advocates and detractors on both sides.

Regardless of your personal feelings on federal fuel charges and carbon taxes, it’s in your financial interest to take advantage of any benefits that offset your individual costs. 

For residents outside of BC, Quebec, and the Northwest, Nunavut, and Yukon Territories, the Canada Carbon Credit is the most direct method of offsetting increased fossil fuel costs.

Regardless of where you live, you can substantially reduce your energy bills by investing in residential solar power.

For example, the EcoFlow DELTA Pro Ultra solar generator and home battery system can slash your electricity bills by 75% or more.

EcoFlow has a wide assortment of solar and portable power station solutions to meet every need — from camping to whole home backup.

Check out our selection today.

*As all residents of Prince Edward Island are eligible for the 20 percent rural top-up, it is reflected in the base amount for PEI.