If you’re curious about the Carbon Tax Rebate 2024, you’re in the right place. This article explains when you’ll get your rebate cheque, how much you’ll receive, and who qualifies for it. Keep reading to find out how much you might get back if you pay the carbon tax in Canada.
What is the Carbon Tax?
The Carbon Tax, or Fuel Charge, is a fee that the Canadian government adds to the price of fuels based on their carbon content. This tax helps to reduce pollution. In 2023, the tax is CA$65 for every tonne of CO2 produced. This amount will increase to CA$170 by 2030. To help people in certain provinces, the Canada Revenue Agency (CRA) provides a rebate.
Who Gets the Rebate?
If you live in New Brunswick, Ontario, Alberta, Saskatchewan, or Manitoba, you can get the Carbon Tax Rebate. This rebate is paid in four parts over the year. There are two types of payments: a basic amount and an extra amount for people living in small or rural areas.
When Will You Get the Money?
The rebate, called the Climate Action Incentive Payment (CAIP), used to be claimed once a year on your tax return. Now, starting from July 2022, it’s given out four times a year. If you live in Newfoundland and Labrador, Prince Edward Island, or Nova Scotia, you will get your rebate in three parts for the first year and four parts in the following years, beginning July 1, 2023.
How Much Will You Get?
The amount of the rebate depends on where you live and how many people are in your family. Here’s a summary for the year 2022:
| Province | Individual | Couple | Per Child (under 19) | First Child (Single Parent) |
|---|---|---|---|---|
| Ontario | $488 | $244 | $122 | $244 |
| Alberta | $772 | $386 | $193 | $386 |
| Saskatchewan | $680 | $340 | $170 | $340 |
| Manitoba | $528 | $264 | $132 | $264 |
| Nova Scotia | $124 | $62 | $31 | $62 |
| New Brunswick | $92 | $46 | $23 | $46 |
| Newfoundland and Labrador | $164 | $82 | $41 | $82 |
| Prince Edward Island | $120 | $60 | $30 | $60 |
In October, New Brunswick residents get double the payment to cover July to September and October to December.
If you live in a rural area, you may get an extra 10% rebate. This will be added to your payment after you complete your 2023 tax return.
When Are Payments Made?
You will receive the rebate on April 15, July 15, October 15, and January 15. If any of these dates fall on a weekend or holiday, the payment will be made on the last business day before. For example, if October 15 is a Sunday, you will get your rebate on Monday.
If you have direct deposit, the money will go straight into your bank account. If you owe taxes, the rebate might be used to pay off your tax debt.
How Do You Qualify?
To get the rebate, you must:
- Be a Canadian resident for tax purposes at the start of the month when CRA makes the payment.
- Be at least 19 years old before the payment is made.
- If you’re under 19, you must be married, have been married, or live with a child.
For more details, you can call CRA at 1-888-863-8662 for benefits or 1-888-863-8657 for tax returns.
The Carbon Tax Rebate helps Canadian taxpayers manage the cost of the carbon tax. Understanding the eligibility, payment dates, and amounts will help you make the most of this support.
1. What is the Carbon Tax Rebate?
The Carbon Tax Rebate is a payment to help cover the cost of the carbon tax on fuels. It is given to residents in certain provinces.
2. How often will I receive the Carbon Tax Rebate?
You will receive it four times a year: April 15, July 15, October 15, and January 15.
3. Who is eligible for the rebate?
Canadian residents who are 19 or older, or younger individuals who are married, have been married, or live with a child, are eligible.
4. How much can I expect to receive?
The amount varies by province and family size. Check the table for specific amounts.
5. What should I do if I owe taxes?
If you owe taxes, your rebate may be used to cover your tax debt. Direct deposit recipients will have the money directly added to their accounts.