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The Canada Carbon Rebate—formerly known as the Climate Action Incentive Payment—is on track for its Summer 2025 payout, aimed at offsetting the costs of federal carbon pricing for households in eligible provinces.
Administered by the Canada Revenue Agency (CRA), the next rebate round is set for July 15, 2025, and each payment is tax-free.
How the Carbon Tax Rebate Works in 2025
The rebate redistributes revenue from the federal pollution pricing system, currently set at $85 per tonne since April 2025. Instead of a lump sum, quarterly disbursements ensure support aligns with seasonal cost spikes like summer driving and air conditioning.
Summer 2025 Payment Details
The CRA has confirmed July 15, 2025, as the Summer rebate date for residents of federally regulated provinces: Alberta, Saskatchewan, Manitoba, Ontario, New Brunswick, Nova Scotia, PEI, and Newfoundland & Labrador . Payments are automatically sent to:
- Adults (19+)
- Spouses/common-law partners
- Eligible children under 19
Residents in rural areas get an additional 20% supplement.
How Much Will You Receive?
Quantities vary by province and household size. Here’s a breakdown of estimated quarterly amounts:
| Province | Individual | Spouse/Partner | Per Child | Family of 4 Total |
|---|---|---|---|---|
| Alberta | $228 | $114 | $57 | $912 |
| Saskatchewan | $206 | $103 | $51.50 | $824 |
| Manitoba | $150 | $75 | $37.50 | $600 |
| Ontario | $151 | $75.50 | $37.75 | $604 |
| New Brunswick | $165 | $82.50 | $41.25 | $660 |
| Nova Scotia | $110 | $55 | $27.50 | $440 |
| Prince Edward Island | $110* | $55* | $27.50* | $440* |
| Newfoundland & Labrador | $149 | $74.50 | $37.25 | $596 |
*PEI includes the rural supplement in the base amounts.
Who Qualifies & What to Do
To receive the Summer 2025 rebate:
| Eligibility Criteria | Requirement |
|---|---|
| Provincial Residency | Must live in a federally priced province on May 1, 2025 |
| Tax Filing | Must file a 2024 tax return (online by April 2 for April payout) |
| Age/Family Status | Be 19+, or have a spouse/common-law, or be a parent of a child under 19 |
| CRA Account Setup | Update direct deposit and household info in My CRA Account |
Payments are automatic once eligible—no extra applications needed.
Why the Carbon Tax Rebate Matters in 2025
This rebate returns more money than the cost of carbon-charged fuel for most households. It’s especially important during summer when energy use spikes.
With federal fuel charges increasing, this payment ensures low- and middle-income families are not disproportionately impact.
The Summer 2025 Carbon Tax Rebate will provide important financial relief on July 15, with generous payments for families—especially in rural areas.
Ensure you’ve filed your taxes, updated CRA records, and live in an eligible province. This quarterly rebate not only mitigates personal expenses but also supports Canada’s climate commitments.
FAQs
How do I know if I qualify for the Canada Carbon Rebate 2025?
You qualify if you live in a federally taxed province, filed your 2024 taxes, and are 19 or older—or have a spouse or child under 19.
When is the next carbon tax rebate payment?
The next payment is scheduled for July 15, 2025, matching the quarterly disbursement cycle (Jan, Apr, Jul, Oct).
Is the carbon tax rebate taxable income?
No, the rebate is completely non-taxable, so you keep every dollar.