The new year has arrived, and so has a fresh round of federal benefits to look forward to this month — including January’s Canada Carbon Rebate payments.
This quarterly carbon tax rebate payment is designed to cushion the impact of federal pollution pricing, and it could be heading your way in just a few days. If you’re eligible, you can expect to see the government payment in your bank account as early as next week.
Unlike many other benefit payments, the Canada Carbon Rebate has no income restrictions — your eligibility isn’t dependent on your income, and your payment amount stays the same regardless of your earnings. All you need to qualify is to reside in one of the provinces participating in the program.
Here’s a breakdown of all the essential details for the January 2025 Canada Carbon Rebate payment, from who qualifies to how much you can get and when the funds will land in your account.
What is the Canada Carbon Rebate?
The Canada Carbon Rebate (CCR), previously known as the Climate Action Incentive Payment, is a quarterly tax-free benefit that helps Canadians cover the costs of federal pollution pricing. The goal is to give individuals and families a bit of financial relief as energy prices climb.
This rebate includes a standard base amount and an extra boost for those living in rural or small communities. It’s all part of the government’s initiative to ease the financial impact of pollution pricing for Canadians.
Who gets a carbon tax rebate in Canada?
You can qualify for the Canada Carbon Rebate if you meet a few simple requirements. To start, you need to be a resident of one of the participating provinces — Alberta, Manitoba, New Brunswick, Newfoundland and Labrador, Nova Scotia, Ontario, P.E.I. or Saskatchewan.
Eligibility generally kicks in at 19 years old, but there are exceptions. If you’re under 19, you might still qualify if you’re married, in a common-law relationship or a parent living with your child.
If you have kids, there’s more good news — you can receive additional payments for each eligible child, as long as they’re registered for the Canada Child Benefit or the GST/HST credit.
Unlike many government benefits, your income doesn’t affect your CCR eligibility. As long as you meet these conditions, you should see your payment as early as next week.
Which provinces get the carbon tax rebate?
The Canada Carbon Rebate is offered to residents of these provinces:
- Alberta
- Manitoba
- New Brunswick
- Newfoundland and Labrador
- Nova Scotia
- Ontario
- Prince Edward Island
- Saskatchewan
Sadly, if you live in B.C., Quebec or any of the territories, the rebate isn’t available.
How to apply for the Canada Carbon Rebate
Good news! You don’t need to apply separately for the Canada Carbon Rebate if you’re a resident of Canada. All you need to do is file your income tax and benefit return each year, even if you have no income to report. The payment is automatic, and if you have a spouse or common-law partner, it will be paid to whoever files their tax return first.
If you’re a newcomer to Canada, you’ll need to complete some extra forms. If you have children, you should fill out the Canada Child Benefits Application (Form RC66 and Form RC66SCH), or if you don’t, you can fill out the GST/HST Credit and Canada Carbon Rebate Application (Form RC151). Once that’s done, mail the forms to your tax centre.
If you live in a rural or small community, you might also be eligible to claim a rural supplement by ticking the box on page 2 of your tax return. For the purposes of the CCR, you live in a rural or small community if your primary residence is outside a Census Metropolitan Area as per the 2016 census.
More about applying for the CCR
Is the CCR rural top-up changing in 2025?
In the 2024 Fall Economic Statement released last month, the government announced plans to expand eligibility for the Canada Carbon Rebate rural top-up to include residents of Census Rural Areas and small population centres within Census Metropolitan Areas (CMAs), starting in April 2025.
This means 1.6 million additional Canadians could start receiving the 20% rural top-up this year, beginning with the next quarterly payment. It would expand to include towns in Ontario like Caledon, Amherstburg, Fort Erie and Russell and Alberta spots like Chestermere, Fort Saskatchewan and Beaumont, to name only a few.
More about the CCR rural top-up expansion
How much is the Canada Carbon Rebate?
The amount you receive from the Canada Carbon Rebate depends on your province and family situation. Each participating province has its own payment rates, and if you live in a rural or small community, you’ll also qualify for the rural supplement, which is always an extra 20% of your base payment.
For the January 2025 payment, here are the quarterly base amounts in each participating province:
- Alberta: $225 for an individual + $112.50 for a spouse, common-law partner or the first child in a single-parent family + $56.25 per additional eligible child
- Manitoba: $150 for an individual + $75 for a spouse, common-law partner or the first child in a single-parent family + $37.50 per additional eligible child
- New Brunswick: $95 for an individual + $47.50 for a spouse, common-law partner or the first child in a single-parent family + $23.75 per additional eligible child
- Newfoundland and Labrador: $149 for an individual + $74.50 for a spouse, common-law partner or the first child in a single-parent family + $37.25 per additional eligible child
- Nova Scotia: $103 for an individual + $51.50 for a spouse, common-law partner or the first child in a single-parent family + $25.75 per additional eligible child
- Ontario: $140 for an individual + $70 for a spouse, common-law partner or the first child in a single-parent family + $35 per additional eligible child
- Prince Edward Island: $110 for an individual + $55 for a spouse, common-law partner or the first child in a single-parent family + $27.50 per additional eligible child
- As all of P.E.I. is considered eligible for the rural supplement, it is included in the base amounts for this province.
- Saskatchewan: $188 for an individual + $94 for a spouse, common-law partner or the first child in a single-parent family + $47 per additional eligible child
More about CCR payment amounts
Is the Canada Carbon Rebate taxable?
Nope! The Canada Carbon Rebate is 100% tax-free as it’s designed to offset other taxes you’ve already paid. You don’t need to include it as income on your tax return, which means every dollar stays in your pocket.
When are the Canada Carbon Rebate payment dates?
The next Canada Carbon Rebate payment date is Wednesday, January 15.
This is the final payment for the 2023 base year, with the new payment cycle starting in April. Here are the rest of the payment dates for 2025:
- April 15, 2025
- July 15, 2025
- October 15, 2025
More about federal benefit payment dates
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