To obtain the Canada Carbon Rebate, you should have filed an revenue tax return for the earlier yr, even when you had no revenue to report. The primary fee of 2025 is predicated on 2023 revenue tax returns. The second, third and fourth funds will probably be primarily based on 2024 revenue tax returns.
The Canada Carbon Rebate is a tax-free fee, created to assist Canadian households offset the price of federal air pollution pricing at gasoline pumps. In keeping with the Canadian government, eight in 10 households will get again greater than they pay into the carbon air pollution pricing system. The quantity you obtain depends upon the place you reside and the scale of your loved ones—extra particulars beneath.
When is the Canada Carbon Rebate paid out?
The Canada Carbon Rebate is distributed 4 occasions per yr:
- January 15
- April 15
- July 15
- October 15
If the fifteenth occurs to fall on a weekend or statutory vacation, funds will exit on the final enterprise day earlier than the fifteenth.
Why is there a carbon rebate?
Carbon rebates are paid out from cash collected as a part of Canada’s carbon pricing system. In 2019, the federal authorities put a price on carbon pollution, with the goal of lowering greenhouse gasoline (GHG) emissions. On the time, the nationwide minimal worth was $20 per tonne of carbon dioxide equal (CO2e). It went as much as $50 in 2022, $65 in 2023 and $80 in 2024. In April 2025, will probably be $95. The minimal worth will proceed rising $15 each April till it reaches $170 per tonne in 2030.
Carbon costs are collected by means of gasoline expenses and an output-based pricing system for business. Since April 1, 2023, drivers in Alberta, Saskatchewan, Manitoba, Ontario, Yukon and Nunavut have paid a gasoline cost of $0.1431 per litre of gasoline. Since July 1, 2023, this cost has additionally utilized to drivers in New Brunswick, Nova Scotia, Prince Edward Island, and Newfoundland and Labrador. (Charges for different gasoline sorts differ.) In April 2024, the gasoline cost charge elevated to $0.1761, and in 2025, will probably be $0.2091. See the rates for 2026 to 2030. MoneySense hack: You’ll be able to’t keep away from gasoline expenses and different fuel consumption levies, however you would possibly have the ability to find cheaper gas or get cash back. (Learn extra about why gas is so expensive.)
Provincial and territorial governments can use the federal carbon air pollution pricing system or develop their very own carbon pricing mannequin or cap-and-trade system, so long as it meets or exceeds federal requirements.
The CCR and tax credit are supposed to offset the price of gasoline expenses for people and households whereas additionally encouraging them to cut back their GHG emissions. Earlier than 2021, the local weather motion incentive was a refundable tax credit score claimed on private revenue tax returns.
