The Government of Canada has officially announced the updated Canada Carbon Rebate for 2025, with quarterly payments rolling out to millions of households beginning in April and continuing throughout the year. These payments are designed to return a portion of the federal carbon pricing revenue directly to families, helping offset rising fuel and utility costs.
This real-time update reflects the 2025 increase in carbon pricing and includes revised rebate amounts for residents across all participating provinces. The new Canada carbon rebate announced includes enhanced support for rural Canadians and low-to-middle-income households.
What Is the Canada Carbon Rebate?
Previously called the Climate Action Incentive (CAI), the Canada Carbon Rebate is a tax-free benefit provided to households in provinces where the federal carbon pricing backstop applies. It’s intended to return more money to families than what they pay in carbon taxes on fuel and heating.
Key details:
Paid every three months (April, July, October, January)
No application needed – issued automatically through CRA
Based on household size and province of residence
Delivered via direct deposit or cheque
Now includes a 10% rural supplement for eligible households outside major metro areas
This year’s canada climate rebate update brings higher payments across all provinces due to the 2025 carbon price increasing to $85 per tonne.
2025 Canada Carbon Rebate – Payment Amounts by Province
Below are the quarterly payment amounts for a family of four (two adults + two children), based on April 2025 figures. These amounts are set to repeat for each quarter unless policy changes occur later in the year.
| Province | Quarterly Payment (Family of 4) | Rural Supplement (+10%) |
|---|---|---|
| Alberta | $450 | $495 |
| Saskatchewan | $436 | $479.60 |
| Manitoba | $380 | $418 |
| Ontario | $310 | $341 |
| New Brunswick | $320 | $352 |
| Nova Scotia | $328 | $360.80 |
| Prince Edward Island | $300 | $330 |
| Newfoundland & Labrador | $340 | $374 |
Single adults receive approximately half the family amount, while each additional child adds 15–20% to the base amount depending on the province.
Who Qualifies for the 2025 Carbon Rebate?
The canada quarterly rebate is issued to Canadians who meet the following conditions:
Must be a resident of a qualifying province as of the first day of the payment month
Must have filed a 2024 personal income tax return
Must be 18 years or older, or be the primary caregiver of a child
Only one person per household (typically the parent or main income earner) receives the payment
No income test – all qualifying individuals receive the same base amount, though the GST/HST credit may be layered on for low-income households
This means even moderate- and higher-income earners qualify under the 2025 payment amounts by province as long as they meet residency and filing requirements.
When Will Payments Be Sent?
The CRA issues payments quarterly, starting with the first round in April 2025, followed by:
July 15, 2025
October 15, 2025
January 15, 2026
Payments will appear as “Canada Carbon Rebate” on your bank statement. If you do not have direct deposit set up, a cheque will be mailed to your registered address.
If you did not receive your payment by the end of the payment month, contact the Canada Revenue Agency (CRA) or log in to My Account on CRA’s website.
Rural Supplement – Extra Support for Remote Communities
To reflect higher transportation and heating costs, a 10% top-up is included in the canada climate rebate update for households living outside major census metropolitan areas (CMAs).
To qualify:
Your address must be outside of a CMA
You must file your return with an accurate postal code
No separate application required – CRA determines eligibility automatically
This supplement is especially valuable in northern communities, farming regions, and First Nations reserves, where energy expenses are above national averages.
FAQs
Who is eligible for the Canada Carbon Rebate in 2025?
Any Canadian resident in a participating province, aged 18+ or a primary caregiver, who files a 2024 tax return qualifies automatically.
How much will I get from the rebate?
Amounts vary by province and family size. A family of four in Alberta, for example, receives $450 per quarter, plus a $45 rural supplement if eligible.
Do I need to apply for this payment?
No. Payments are automatic once you’ve filed your tax return and met the eligibility requirements.
What if I didn’t receive my rebate?
Log in to your CRA My Account to verify your banking details or check if a cheque is in process. If needed, call CRA support after the scheduled payment window.
Does this rebate affect my taxes or benefits?
No. It is a non-taxable benefit, does not count as income, and will not affect other federal or provincial support programs.
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