As of May 2025, Canadians continue to receive quarterly carbon tax rebates under the federal Climate Action Incentive Payment (CAIP) program. This program is designed to return proceeds from the federal fuel charge to households in provinces where the federal backstop applies. These rebates have been adjusted for June 2025 to reflect changes in carbon pricing and inflation.
What Is the Climate Action Incentive Payment (CAIP)?
The CAIP is a tax-free payment that offsets the cost of the federal carbon tax, helping households manage rising energy expenses. Eligible residents receive the payment every three months: in April, July, October, and January.
To qualify, you must file your taxes and reside in a province where the federal carbon pricing applies. As of May 2025, these provinces include Alberta, Saskatchewan, Manitoba, Ontario, Newfoundland and Labrador, Nova Scotia, Prince Edward Island, and New Brunswick.
June 2025 Carbon Rebate Amounts by Province
The amounts vary by province due to differences in energy consumption patterns and carbon pricing structure. Here is the full list for the June 2025 quarter:
| Province | Individual | Spouse or Common-Law Partner | Per Child (Under 19) | Family of Four |
|---|---|---|---|---|
| Alberta | $225 | $112.50 | $56.25 | $450 |
| Saskatchewan | $188 | $94 | $47 | $376 |
| Manitoba | $150 | $75 | $37.50 | $300 |
| Ontario | $140 | $70 | $35 | $280 |
| Newfoundland & Labrador | $164 | $82 | $41 | $328 |
| Nova Scotia | $156 | $78 | $39 | $312 |
| Prince Edward Island | $140 | $70 | $35 | $280 |
| New Brunswick | $148 | $74 | $37 | $296 |
These amounts are indexed to inflation and adjusted annually. The June 2025 payment reflects updates based on 2024 inflation data.
How Payments Are Delivered
Payments are issued automatically through the Canada Revenue Agency (CRA) via direct deposit or cheque. There is no need to apply, but you must file an annual tax return to receive your rebate.
Residents in rural areas of eligible provinces may receive an additional 10% supplement. This recognizes the higher fuel usage in less densely populated regions, where alternatives to fossil fuels are less accessible.
Why the Carbon Rebate Exists
The federal carbon pricing system is a cornerstone of Canada’s climate policy. It puts a price on greenhouse gas emissions to encourage lower carbon consumption. The rebate ensures that households are not disproportionately burdened by the carbon tax while still maintaining the incentive to reduce emissions.
By returning the majority of carbon revenue directly to households, the government ensures that most families receive more in rebates than they pay in carbon tax, especially lower- and middle-income earners.
What’s New in the 2025 Update?
- Increased Payments: Compared to June 2024, most provinces saw a slight rise in the rebate due to inflation-linked adjustments.
- Expanded Eligibility Checks: The CRA has implemented enhanced verification to reduce fraud, ensuring only eligible households receive payments.
- Rural Supplement Review: A review is underway to possibly expand the 10% rural supplement or apply differentiated rates based on region.
Future Outlook for Carbon Rebates
With Canada committed to reducing its emissions under the Paris Agreement, carbon pricing is expected to rise through 2030. The rebate system will continue to evolve to maintain public support and ensure economic fairness.
The federal government has also indicated a future shift towards more targeted climate supports, possibly integrating home retrofitting incentives and public transit credits.
Conclusion
The June 2025 update to the Climate Action Incentive Payment reflects a consistent federal approach to climate accountability and affordability. While carbon pricing rises, rebates ensure households are not unfairly impacted. Canadians can expect continued quarterly support, with adjustments based on economic conditions and environmental goals.
FAQ
How do I know if I’m eligible for the carbon rebate?
You are eligible if you live in a participating province, are at least 19 years old, or have a child, and have filed your taxes for the previous year.
When will the next rebate be issued?
The next CAIP payment will be delivered in July 2025. Payments are scheduled for April, July, October, and January.
What if I moved provinces recently?
Your rebate amount is based on your province of residence as of the first day of the payment month. If you moved in June 2025, your July payment will reflect your new province.
Do I need to apply every year?
No application is needed, but you must file your tax return annually to remain eligible.
Why are amounts different in each province?
Each province has different energy usage profiles and pricing impacts, which the federal government accounts for when calculating rebates.
For More Information Click Here