As of May 2025, Canada continues to offer the federal Climate Action Incentive Payment (CAIP) as a direct financial return to households in provinces where the federal carbon pricing system applies. The goal is to offset the cost of carbon pricing and encourage eco-conscious energy choices. With a quarterly disbursement system in place, most families see these payments as direct deposits or cheques, depending on CRA preferences. The carbon rebate amounts are updated annually, and the June 2025 round reflects new rates and adjustments based on inflation and policy changes.
Provinces Eligible for the Federal Carbon Rebate
As of the latest update, the federal carbon pricing backstop — and thus the rebate — applies in Alberta, Saskatchewan, Manitoba, Ontario, Nova Scotia, Prince Edward Island (PEI), and Newfoundland and Labrador. Quebec and British Columbia manage their own carbon pricing systems and do not receive federal CAIP payments. The 2025 adjustments consider population, average household energy consumption, and rural supplements.
June 2025 Carbon Rebate Amounts by Province
The June 2025 rebate reflects the second quarterly installment of the year. Here’s a breakdown of the payment amounts by province, based on a family of four (two adults, two children). Note that rural residents receive an additional 20% supplement.
Province |
Individual |
Spouse |
Per Child |
Family of Four |
Rural Supplement (20%) |
|---|---|---|---|---|---|
Alberta |
$193 |
$96 |
$48 |
$385 |
+$77 |
Saskatchewan |
$170 |
$85 |
$42.50 |
$340 |
+$68 |
Manitoba |
$150 |
$75 |
$37.50 |
$300 |
+$60 |
Ontario |
$140 |
$70 |
$35 |
$280 |
+$56 |
Nova Scotia |
$149 |
$74 |
$37 |
$297 |
+$59.40 |
Prince Edward Island |
$140 |
$70 |
$35 |
$280 |
+$56 |
Newfoundland & Labrador |
$164 |
$82 |
$41 |
$328 |
+$65.60 |
These amounts are automatically calculated and deposited quarterly by the Canada Revenue Agency (CRA). The rural supplement aims to support residents with higher transportation and heating costs due to limited access to public transit or urban infrastructure.
How the Carbon Rebate is Funded and Calculated
The rebates are funded through revenues collected from carbon pricing on fossil fuels. The system ensures that 90% of the revenue is returned to individuals and families, while the remainder supports small businesses, Indigenous communities, and emissions-reducing initiatives. The exact amount varies based on:
- Province of residence
- Household composition
- Urban vs. rural location
- Annual carbon price increase (reached $80 per tonne in 2025)
The carbon price itself is set to continue rising annually under Canada’s climate plan, influencing the rebate values accordingly.
Why the Rebate Matters in 2025
With inflation and energy costs still influencing household budgets in mid-2025, the carbon rebate offers significant financial relief. For many middle- and lower-income Canadians, it more than offsets the additional costs imposed by carbon pricing. It also signals the federal government’s continued commitment to balancing climate action with affordability. Households that take steps to reduce emissions — such as switching to heat pumps or EVs — stand to benefit further, as their rebate exceeds any cost increase from carbon pricing.
Conclusion
Canada’s carbon rebate system remains a critical part of the national climate framework, particularly in 2025 when cost-of-living pressures are top of mind. The June 2025 carbon rebate amounts offer meaningful support to households while reinforcing cleaner energy habits. Staying informed on these quarterly updates ensures Canadians can plan their finances and contribute to emission reductions with confidence.
FAQs
How do I receive my carbon rebate in 2025?
If you file your taxes, the rebate is automatically processed by the CRA. Payments are issued quarterly, usually via direct deposit or cheque.
Who qualifies for the rural supplement?
Anyone residing outside a census metropolitan area, as defined by Statistics Canada, typically qualifies for the 20% rural supplement.
Are the rebate amounts taxable?
No, carbon rebates are not considered taxable income and do not affect benefits such as the GST credit or Canada Child Benefit.
What if I didn’t receive my rebate?
If you haven’t received your CAIP payment, ensure your tax filings are up-to-date. You can also check your CRA MyAccount for payment status.
Will rebate amounts increase again in 2026?
Yes, the amounts are expected to rise annually alongside the federal carbon price, which is scheduled to increase to $95 per tonne in 2026.
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