Carbon Rebate arrives January 15th.

Carbon Rebate arrives January 15th.

As the new year begins, Canadians can look forward to a fresh round of federal benefits to ease financial burdens—most notably, the next Canada Carbon Rebate payment scheduled for January 15, 2025.

This quarterly payment, managed by the Canada Revenue Agency (CRA), aims to offset the cost of federal pollution pricing and provide much-needed relief to households across eight participating provinces.

If you’re eligible, you could see this benefit deposited directly into your bank account in just a few days.

Unlike many other government programs, this rebate does not depend on your income level.

Read on to learn more about the Canada Carbon Rebate, who qualifies, and how much you can expect to receive.

What Is the Canada Carbon Rebate?

The Canada Carbon Rebate, previously known as the Climate Action Incentive Payment (CAIP), is a tax-free quarterly payment designed to cushion the financial impact of federal pollution pricing.

The initiative is part of the Canadian government’s broader strategy to combat climate change while ensuring families and individuals are supported amid rising energy costs.

The rebate includes a base payment for all eligible residents and an additional 20% rural supplement for those living in rural or small communities.

This supplement acknowledges the higher energy costs often faced by residents in less urbanized areas.

Who Is Eligible for the Canada Carbon Rebate?

To qualify for the Canada Carbon Rebate, you must meet the following criteria:

1. Residence in a Participating Province: The rebate is available to residents of
   • Alberta, Manitoba, New Brunswick, Newfoundland and Labrador, Nova Scotia, Ontario, Prince Edward Island (P.E.I.), Saskatchewan

   Unfortunately, residents of British Columbia, Quebec, and the territories are not eligible for this payment, as these regions have implemented their own carbon pricing systems.

2. Age Requirement: Eligibility begins at 19 years old. However, exceptions apply if you are:
   • Married or in a common-law relationship.
   • A parent living with your child.
3. Additional Payments for Children: If you have children, you can receive extra payments for each eligible child.
   • To qualify, your child must be registered for the Canada Child Benefit (CCB) or the GST/HST credit.
4. Income-Independent: Your income level does not affect your eligibility or payment amount for the Canada Carbon Rebate. As long as you meet the residency and other basic requirements, you’ll receive the payment.

How to Apply for the Canada Carbon Rebate?

The good news is that no separate application is required for the Canada Carbon Rebate, but newcomers to Canada need to apply to receive the payment:

1. File Your Taxes: You must file your annual income tax and benefit return, even if you have no income to report. This step is crucial, as the CRA uses tax filings to determine eligibility and payment amounts.
2. Spouses and Common-Law Partners: If you’re married or in a common-law relationship, the payment will be issued to the partner who files their tax return first.
3. Newcomers to Canada: If you’re new to Canada, you’ll need to complete additional forms:
   • For families with children: Canada Child Benefits Application (RC66 and RC66SCH).
   • For individuals without children: GST/HST Credit and Canada Carbon Rebate Application (RC151).
   • To qualify, your primary residence must be outside a Census Metropolitan Area (CMA) as defined in the 2016 Census.Claiming the Rural Supplement: If you live in a rural or small community, you can claim the 20% rural supplement by checking the designated box on page 2 of your tax return.

Upcoming Changes to Rural Supplement Eligibility

As announced in the 2024 Fall Economic Statement, the federal government plans to expand eligibility for the rural top-up starting in April 2025.

This change will include residents of Census Rural Areas and small population centres within CMAs, potentially benefiting an additional 1.6 million Canadians.

Towns such as Caledon, Amherstburg, Fort Erie, and Russell in Ontario and Chestermere, Fort Saskatchewan, and Beaumont in Alberta are just some of the communities that may soon qualify for the extra 20% payment.

How Much Is the Canada Carbon Rebate?

The amount you receive depends on your province of residence and family situation. Here’s a breakdown of the January 2025 quarterly base amounts:

• Alberta: $225 for an individual, $112.50 for a spouse or first child in a single-parent family, and $56.25 per additional child.
• Manitoba: $150 for an individual, $75 for a spouse or first child in a single-parent family, and $37.50 per additional child.
• New Brunswick: $95 for an individual, $47.50 for a spouse or first child in a single-parent family, and $23.75 per additional child.
• Newfoundland and Labrador: $149 for an individual, $74.50 for a spouse or first child in a single-parent family, and $37.25 per additional child.
• Nova Scotia: $103 for an individual, $51.50 for a spouse or first child in a single-parent family, and $25.75 per additional child.
• Ontario: $140 for an individual, $70 for a spouse or first child in a single-parent family, and $35 per additional child.
• Prince Edward Island: $110 for an individual, $55 for a spouse or first child in a single-parent family, and $27.50 per additional child.
  • Note: All residents of P.E.I. automatically qualify for the rural supplement.
• Saskatchewan: $188 for an individual, $94 for a spouse or first child in a single-parent family, and $47 per additional child.

Rural Supplement

Residents of rural or small communities are eligible for an additional 20% of the base payment.

For example, an individual in Alberta residing in a rural area would receive $270 instead of $225.

For millions of Canadians, the Canada Carbon Rebate represents a small but meaningful step toward financial stability in an increasingly expensive world.