The Carbon Tax is a federal policy designed to reduce greenhouse gas emissions by placing a price on carbon dioxide emissions. Through the quarterly Canada Carbon Rebate, the Canadian government returns a portion of the revenue generated from carbon pricing to Canadian households.
The majority of families—eight out of ten—receive more money back from the carbon tax rebates than they pay, offsetting the cost of carbon pollution pricing. The Canada Carbon Rebate Amounts vary annually, depending on factors such as family circumstances and the revenue generated from the carbon tax.
For more detailed information on Canada Carbon Rebate Amounts 2024-25, please continue reading this article.
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What is the Canada Carbon Rebate?
The main goal of the Federal Canada Carbon Rebate, also known as the Federal Climate Incentive Payment 2024, is to compensate Canadian families and individuals with funds collected from the federal carbon pricing scheme. This rebate helps mitigate the higher costs consumers face due to the federal carbon price.
Canada Carbon Rebate Amount Details
In the provinces where the federal fuel charge applies, a family of four can receive up to $1,800 under the basic Canada Carbon Rebate in 2024-2025. The first of four quarterly payments will be issued in April 2024, with subsequent payments in July, October, and January 2025.
Residents in small and rural communities receive an additional 10% rural supplement, increasing to 20% as of April 20, 2024. The Carbon Tax Rebate is typically paid on April 15th, July 15th, October 15th, and January 15th. If these dates fall on a weekend or federal holiday, the payment is made on the last business day before the 15th.
First & Second Adult, Each Child, and Family of 4
The specific amounts vary by province based on their agreements with the federal government and the revenue collected from carbon emitters.
| Province | First Adult | Second Adult | Each Child | Family of 4 |
|---|---|---|---|---|
| Alberta | $193 | $96.50 | $48.25 | $386 |
| Manitoba | $132 | $66 | $33 | $264 |
| Ontario | $122 | $61 | $30.50 | $244 |
| Saskatchewan | $170 | $85 | $42.50 | $340 |
| Nova Scotia | $124 | $62 | $31 | $248 |
| Newfoundland and Labrador | $164 | $82 | $41 | $328 |
| Prince Edward Island | $120 | $60 | $30 | $240 |
| New Brunswick | $92 | $46 | $23 | $184 |
| British Columbia | $447 | $223.5 | $111.50 |
Yukon, Nunavut, Quebec, and the Northwest Territories are not included in the CAIP, as the federal government does not collect gas taxes in these territories. Each territory has its own measures to alleviate residents’ burdens; for example, Yukon has pledged to return all carbon fee revenues to its residents.
How to Get a Canada Carbon Rebate?
To receive the Canada Carbon Rebate, Canadians must file their annual tax return. Rural residents must check the appropriate box on the tax return to receive the rural top-up. The rebate is automatically deposited every three months into the bank accounts of Canadians enrolled for direct deposit with the Canada Revenue Agency; otherwise, a cheque will be mailed.
The first tax filer in a household, whether married or in a common-law partnership, will receive the full Canada Carbon Rebate amount for all household members, including children.
The federal government encourages banking institutions to label the Canada Carbon Rebate direct payments clearly in Canadians’ bank accounts each quarter.
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