2 min read
23 Jun
23Jun

As part of Canada's ongoing efforts to combat climate change, the federal government has implemented a carbon pricing system that places a fee on carbon pollution. To help offset the impact of this carbon tax on households, the Canada Carbon Rebate (CCR), formerly known as the Climate Action Incentive payment, provides quarterly payments to eligible individuals and families.

Key Changes in 2024

The year 2024 marks significant changes to the carbon tax rebate program:

  • Increased Rural Supplement: The rural supplement, which provides additional support to residents of smaller and rural communities, has been doubled from 10% to 20% of the base amount. This recognizes the unique challenges faced by rural residents, such as higher energy needs and limited access to public transportation.
  • Higher Rebate Amounts: Due to the rising federal carbon price, the rebate amounts for 2024 have increased in most provinces. This is intended to ensure that the majority of households receive more in rebates than they pay in carbon pricing.

Carbon Tax Rebate Payment Dates 2024

The CCR is paid out quarterly on the following dates:

  • April 15, 2024
  • July 15, 2024
  • October 15, 2024
  • January 15, 2025

If you filed your 2023 taxes by March 15, 2024, you should have received your first payment in April. If you filed after March 15th, you can expect your payment approximately 6-8 weeks after your tax return is assessed.

Eligibility for the Carbon Tax Rebate

To be eligible for the CCR, you must be a resident of Alberta, Saskatchewan, Manitoba, Ontario, or any of the Atlantic provinces. You must also have filed your 2023 tax return.

Carbon Tax Rebate Amounts for 2024

The amount of your CCR depends on your province of residence and the size of your family. Here's a breakdown of the estimated annual payment totals for a family of four in 2024/25:

  • Alberta: $1,800
  • Saskatchewan: $1,504
  • Manitoba: $1,200
  • Ontario: $1,120
  • New Brunswick: $760
  • Nova Scotia: $824
  • Prince Edward Island: $880
  • Newfoundland and Labrador: $1,192

Residents of rural areas will receive an additional 20% supplement on top of these base amounts.

How to Apply for the Carbon Tax Rebate

You don't need to apply separately for the CCR. It is automatically calculated and issued when you file your annual income tax return.

Additional Considerations

  • New Brunswick Supplement: For residents of New Brunswick, the April 2024 payment includes a retroactive amount for the 2022 base year. The supplement will return to normal in July 2024.
  • Territories: Residents of Yukon, Northwest Territories, and Nunavut are not subject to the federal carbon pricing system and therefore do not receive the CCR. However, they may be eligible for territorial programs that offer similar benefits.

Resources

FAQs About the Carbon Tax Rebate

  • Q: What is the purpose of the carbon tax rebate? A: The rebate aims to offset the costs associated with the carbon tax for individuals and families, particularly those with low and middle incomes.
  • Q: How do I know if I am eligible for the rebate? A: You are eligible if you are a resident of a province where the federal carbon pricing system applies and have filed your tax return.
  • Q: What if I didn't receive my rebate payment? A: If you are eligible and haven't received your payment, contact the CRA for assistance.

The carbon tax rebate is an important component of Canada's climate action plan. By providing financial relief to households, it helps ensure a fair and equitable transition towards a cleaner and more sustainable future 

Comments
* The email will not be published on the website.