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Tax & Accounting May 27, 2024

Canada Carbon Rebate for Individuals

In 2016, the federal government introduced the Pan-Canadian Framework on Clean Growth and Climate Change that gave the provinces and territories the flexibility to develop their own carbon pricing systems but only if they met the minimum federal standard. Otherwise, a federal backstop price on carbon emissions applies to any jurisdictions not meeting the federal standard. Currently, the following jurisdictions do not meet the federal standard: Saskatchewan, Manitoba, Ontario, Alberta, Newfoundland and Labrador, Nova Scotia and Prince Edward Island. Accordingly, the federal carbon pricing system thus applies to these provinces.

In 2018, the federal government introduced the Climate Action Incentive (“CAI”), a refundable credit available to individuals resident in provinces where the federal carbon pricing system was imposed. Although this was a federal payment, the payment amounts vary by jurisdiction. More recently, the CAI has been rebranded as the Canada Carbon Rebate (“CCR”).

At first, the refundable tax credit was payable as refund when the individual filed their annual tax return. However, the CCR is now distributed in quarterly payments made in April, July, October and January via the benefit system to eligible individuals residing in Alberta, Saskatchewan, Manitoba, Newfoundland and Labrador, Nova Scotia, Prince Edward Island, and New Brunswick.

Calculating the credit

The CCR amount due includes a basic amount for all "eligible individuals" (discussed below) and a 10% supplement for "eligible individuals" residing in small and rural communities outside a census metropolitan area (CMA). Starting in the 2024-2025 period, the 10% supplement is increased to 20%. To find out if an individual resides outside a CMA, go to:

The CCR amount for a year is paid quarterly via the benefit system on April 15, July 15 and October 15, and January 15. If an individual is registered for direct deposit with the CRA, they should receive their payment directly in their bank account. Each quarterly payment represents 25% of the annual CCR amount. For example, for a fuel charge year running from April 1, 2024 to March 30, 2025, the payments are made on April 15, 2024, July 15, 2024, October 15, 2024, and January 15, 2025.

For a household, the basic CCR amount for the year is the sum of:

  1. A base amount for the eligible individual;
  2. An amount for an eligible spouse or common-law partner of the eligible individual;
  3. An amount for a single parent's "qualified dependant" (as defined below) of the eligible individual; and
  4. An amount for other "qualified dependants" of the eligible individual.

For a household, the supplement for residents of small and rural communities corresponds to 20% of the basic CCR amount otherwise calculated. To claim the CCR supplement for residents of small and rural communities, you must reside outside a census metropolitan area (CMA) at the beginning of the "specified month" (defined below as April, July, October and January).

An "eligible individual" and their spouse/common-law partner (if applicable) must file their tax return annually to receive the CCR payment and tick the box their tax return to confirm that they reside outside a CMA to receive the 20% supplement. The payment is made to the one whose return is first assessed by the CRA.

Base year and payment period

The base year is the taxation year of the tax return from which information is taken to calculate the CCR amount and the payment period is the 12-month period running from April 1 of the year immediately following the base year to March 30 of the second year following the base year. For example, if the base year is 2024 for the 2024 tax return, the CAI payment period runs from April 1, 2025 to March 30, 2026.

Change of situation

The CRA must be informed immediately of the following changes in the individual’s situation:

  • Change of number of children in the individual’s care;
  • Change of the individual’s marital situation;
  • Death of the individual or individual’s spouse or common-law partner; or
  • Move of the individual to a new address.

Payment amounts

The federal government has designated the following quarterly payments for April 15, July 15, and October 15 of 2024, and January 15 of 2025 to eligible individuals: 

   First adult Second adult  Each child Family
of 4
 AB $225
Rural: $270
Rural: $135
Rural: $67.50
Rural: $540
 MB $150
Rural: $180
Rural: $90
Rural: $45
Rural: $360
 ON $140
Rural: $168
Rural: $84
Rural: $42
Rural: $336
SK $188
Rural: $225.60
Rural: $112.80
Rural: $56.40
Rural: $451.20
NB $95
Rural: $114
Rural: $57
Rural: $28.50
Rural: $228
NS $103
Rural : $123.60
Rural: $61.80
Rural: $30.90
Rural: $247.20
PEI* $110
Rural: $110
Rural : $55
Rural: $27.50
Rural: $220
NL $149
Rural: $178.80
Rural: $89.40
Rural: $44.70
Rural: $357.60

*As all residents of Prince Edward Island are eligible for the 20 per cent rural top-up, it is reflected in the base amount for PEI.

Eligible Individual

An "eligible individual" for a "specified month" for which a CCR payment is made is defined to include any person who resides in Alberta, Ontario, Manitoba, Saskatchewan, Newfoundland and Labrador, Nova Scotia, Prince Edward Island or New Brunswick at the beginning of the specified month and meets one of the following conditions:

  • Has reached the age of 19 before the specified month;
  • Is married or in common-law partnership before the specified month; or
  • Is a parent residing with their child before the specified month.

Specified month

A "specified month" is any of the months of April, July, October or January.

Qualified relation

An individual's "qualified relation" for a specified month for which a CCR payment is made is their cohabiting spouse or common-law partner at the start of the specified month.

Eligible spouse or common-law partner

For the purpose of the CCR, an eligible spouse or common-law partner is a person not meeting any of the conditions listed in the "Ineligibility of Individuals, Qualified Relations or Qualified Dependants" section below at the start of a "specified month" (as defined above) for which a CAI payment is made.

Either you or your spouse or common-law partner but not both may claim the CAI for the family. If two individuals in the family reside in different locations, the province of residence for the individual making the claim will be used to calculate the CAI for the family.

If you are married or living in a common-law relationship but your spouse or common-law partner is not an eligible spouse or common-law partner for the purpose of the CAI, you must complete the calculation as if you do not have an eligible spouse or common-law partner.

Qualified dependant

A "qualified dependant" is a person meeting all the following conditions at the beginning of the "specified month" for which a CCR payment is made:

  • Is your child or depends on you or your cohabiting spouse or common-law partner for support;
  • Resides with you;
  • Is under 19;
  • Is not an "eligible individual" for the "specified month"; and
  • Is not a "qualified relation" of any individual for the "specified month".
  • Is not married or living with a common-law partner; and
  • Is not a parent living with their child;

Ineligibility of individuals, qualified relations, and qualified dependants

"Eligible individuals", "qualified relations", and "qualified defendants" do not qualify for the CCR if:

  • They have died before the "specified month";
  • They are prisoners confined for at least 90 days including the first day of the "specified month";
  • They are non-residents of Canada for income tax purposes at the beginning of the "specified month" (other than those residing in Canada before the beginning of the "specified month" and being cohabiting spouses or common-law partners of persons deemed to reside in Canada throughout the year including the beginning of the "specified month");
  • They do not have to pay tax because they are officers or servants of a foreign country at the beginning of the "specified month"; or
  • They have children for whom the children special allowance (CSA) is payable for the "specified month".

Single parents of a qualified dependant

If at the beginning of a "specified month" you do not have a spouse or a common-law partner but have a dependant meeting all the conditions for a "qualified dependant", you qualify for the higher CCR amount for a single parent's "qualified dependant" for that dependant. If you also have other "qualified dependants", you qualify for regular CCR amounts for those other dependants.

Shared custody

If you and your ex-spouse or common-law partner share the custody of your child or children, you will each receive CCR payments equal to 50% of the payments you would have received if you had full custody.

Interested in learning more about the Canada Carbon Rebate for Individuals?
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