As of May 2025, Canadians continue to receive quarterly Climate Action Incentive Payments (CAIP), now rebranded as the Canada Carbon Rebate (CCR). This rebate offsets the rising costs of carbon pricing and ensures households are compensated for their share of carbon pollution charges. The federal government updates the rebate amounts annually, with adjustments varying by province due to regional differences in carbon pricing and cost of living.
The next payment will be issued in July 2025, covering the second quarter. Here’s what you need to know about the most recent update for June 2025.
What Is the Canada Carbon Rebate?
The Canada Carbon Rebate is a direct payment made to eligible households in provinces where the federal carbon pricing backstop applies. This includes Alberta, Saskatchewan, Manitoba, Ontario, New Brunswick, Nova Scotia, Prince Edward Island, and Newfoundland and Labrador. Quebec and British Columbia administer their own carbon pricing systems and are not part of the federal rebate framework.
Each eligible household receives a base amount, with additional payments for spouses or common-law partners and dependents under 19. The goal is to return more money to families than they pay through carbon taxes, especially benefiting low- and middle-income Canadians.
June 2025 Canada Carbon Rebate Payment Schedule and Method
Rebate payments are distributed quarterly via direct deposit or cheque through the Canada Revenue Agency (CRA). The upcoming payment date is July 15, 2025. To receive it, individuals must have filed their 2024 income tax return and meet residency requirements.
Payment amounts vary depending on the province of residence and family size. The table below shows the updated Canada Carbon Rebate amounts for 2025.
June 2025 Canada Carbon Rebate Amounts by Province
| Province | Individual | Spouse/Common-law Partner | Per Child (Max 4) | Family of 4 Total |
|---|---|---|---|---|
| Alberta | $193 | $96 | $48 | $385 |
| Saskatchewan | $170 | $85 | $42.50 | $340 |
| Manitoba | $150 | $75 | $37.50 | $300 |
| Ontario | $140 | $70 | $35 | $280 |
| New Brunswick | $95 | $47.50 | $23.75 | $190 |
| Nova Scotia | $103 | $51.50 | $25.75 | $206 |
| Prince Edward Island | $110 | $55 | $27.50 | $220 |
| Newfoundland & Labrador | $127 | $63.50 | $31.75 | $254 |
Why the Carbon Rebate Differs by Province
Differences in rebate amounts are due to varying energy consumption patterns, climate conditions, and provincial reliance on fossil fuels. Provinces like Alberta and Saskatchewan receive higher rebates because they use more carbon-intensive energy sources. Meanwhile, Ontario and Atlantic provinces typically receive lower rebates due to lower average emissions.
The rebate is designed to be revenue-neutral. This means the federal government does not retain any proceeds from the carbon tax. All collected revenue is returned to residents of the province where the carbon pricing was applied, ensuring fairness across regions.
Maximizing Your Rebate: What You Need to Know
To ensure you receive the full rebate:
- File your income tax return on time, even if you have no income.
- Update your address with the CRA if you move provinces.
- Confirm your direct deposit information is accurate.
If you missed a previous rebate due to late filing, retroactive payments can be issued after the CRA processes your return. Individuals living in rural or small communities may also qualify for a 10% top-up in certain provinces.
Conclusion
The Canada Carbon Rebate provides meaningful financial support amid the cost-of-living increases driven by climate policy. The June 2025 updates reflect the federal commitment to environmental responsibility without unfairly burdening families. Staying informed ensures you get what you’re owed—and take full advantage of Canada’s climate compensation efforts.
FAQ
How do I know if I qualify for the rebate?
If you reside in an eligible province and filed your 2024 tax return, you’re automatically considered for the rebate. No separate application is needed.
Do I need to reapply every year?
No. As long as your tax filings are current, the Canada Revenue Agency will process your eligibility each year automatically.
What happens if I move to a different province?
Your rebate amount may change based on the carbon pricing in your new province. Update your address with the CRA promptly to ensure correct payment.
Is the Canada Carbon Rebate taxable?
No. These payments are non-taxable and do not affect other benefits or income calculations.
Can I receive the payment by cheque?
Yes. If you’re not enrolled for direct deposit, the CRA will send a cheque to your mailing address.
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