Canada Carbon Rebate Explained: Who Qualifies and How to Claim

Update: Final carbon tax payments sent, starting in April 2025

Prime Minister Mark Carney ended the consumer carbon tax on March 14, 2025. The final Canada Carbon Rebate (CCR) payments were issued beginning April 22, 2025. To receive this final payment, you needed to file your 2024 tax return; payments were issued after those returns were assessed.

If you received an email regarding a Canada Carbon Rebate payment or any government payment, check your messages in your Canada Revenue Agency (CRA) online account rather than clicking links in the email. Email scams that mimic government communications are common, so it’s safer to access official information directly through your CRA account.

For background on the policy change that ended the consumer price on carbon, consult official government communications or published reporting on the decision.

What was the Canada Carbon Rebate?

The Canada Carbon Rebate, previously called the climate action incentive payment, was a tax-free quarterly payment made to eligible residents of eight provinces: Alberta, Saskatchewan, Manitoba, Ontario, New Brunswick, Nova Scotia, Prince Edward Island, and Newfoundland and Labrador. Payments were issued by direct deposit or cheque and were designed to help individuals and families offset the increased costs associated with federal carbon pollution pricing.

Amounts varied by household composition and province of residence. Residents of small or rural communities received an additional 20% supplement on the base amount. According to government reporting, most families received more in rebates than they paid into the federal pollution pricing system.

Eligibility required filing an income tax return for the previous year, even if no income was reported. The first CCR payment in 2025 used information from 2023 tax returns; subsequent payments were to be based on later tax years, though the final two planned payments were cancelled after the federal fuel charge and the rebate program were ended.

When was the Canada Carbon Rebate paid out?

The Canada Carbon Rebate was distributed quarterly on or around January 15, April 15, July 15 and October 15. Before 2021, the climate action incentive was delivered as a refundable tax credit claimed on personal income tax returns rather than as quarterly payments.

Why was there a carbon rebate?

The carbon rebate returned a large portion of revenue raised through Canada’s carbon pricing system to households in provinces that used the federal backstop. The federal carbon pricing regime charged a fee on fuels and used an output‑based pricing system for certain industrial emissions, with a national minimum price per tonne of CO2e that increased over time.

Fuel charges were collected at the pump in jurisdictions that relied on the federal system. Rates rose in successive years and were scheduled to increase further under the previous federal plan. Provincial and territorial governments could alternatively run their own pricing systems if those systems met or exceeded federal standards.

Ottawa allocated approximately 90% of the revenues collected back to the originating jurisdictions, either through direct payments to residents via the CCR or via provincial and territorial programs. The remaining funds supported targeted initiatives such as education, small and medium-sized business support, health care facilities and Indigenous programming.

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Who received Canada Carbon Rebate payments?

To qualify for CCR payments, an individual had to be a resident of Canada for income tax purposes at the start of the month when the CRA issued payments, be a resident of one of the applicable provinces on the first day of that month, and generally be at least 19 years old in the month prior to the payment. Certain people younger than 19 could also qualify if they met specific criteria.

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What if you were eligible but didn’t receive the payment?

If your 2024 tax return has been assessed and you have not received the final CCR payment, contact the CRA to determine the reason. Be aware that if you owe taxes or other government debts, outstanding balances may be offset against the CCR payment before any remainder is issued to you.

How much was the Canada Carbon Rebate?

Rebate amounts varied by province and household makeup; household income did not affect the payment size. Each province had a base amount with additional amounts for a second adult, eligible children, and a rural or small‑community supplement where applicable. The examples below show the quarterly base amounts for 2024–2025. The figures for Prince Edward Island include a 10% rural supplement because all residents there qualified for that boost.

	AB	SK	MB	ON	NB	NS	PEI	NL
First adult	$225	$188	$150	$140	$95	$103	$110	$149
Second adult	$112.50	$94	$75	$70	$47.50	$51.50	$55	$74.50
Each eligible child	$56.25	$47	$37.50	$35	$23.75	$25.75	$27.50	$37.25
Family of four	$450	$376	$300	$280	$190	$206	$220	$298

Source: CRA published amounts for the 2024–25 base year

Are CCR payments taxable?

No. Canada Carbon Rebate payments were tax-free. For final payment details and official guidance, consult the CRA or other government resources directly through their official channels.