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This post discusses everything you need to know about the Carbon Tax Rebate (CAIP), including the payment dates, payment amounts, eligibility and more.

While others are still doubting the rebate, about 12 million Canadians are already beneficiaries as reported recently by the federal government. 

The fact that carbon tax contributes significantly to inflation should make every Canadian a recipient of the rebate.

This explains why all the provinces and territories seek to offset the cost of carbon tax through rebates.

But the rebate I will explain here refers to the one administered by the Canada Revenue Agency which is formally known as the Climate Action Incentive Payment (CAIP). 

This rebate is only available to the residents of eight provinces excluding British Columbia, Quebec, Northwest Territories, Nunavut and Yukon.

If you’re from one of these excluded areas, jump to the FAQ section of this article to learn about the carbon tax of your province or territory.

That said, at the end of this article, you should know the Carbon Tax Rebate (CAIP) payment dates for 2024 and your entitled payments.

Carbon Tax Rebate (CAIP) Payment Dates 2024

The Carbon Tax Rebate (CAIP) payments are administered quarterly in January, April, July, and October.

The payments are usually made on the 15th of each quarter. But if the 15th falls on a weekend or a federal statutory holiday, the payment will be administered on the last business day before the 15th.

Having this in mind, you can easily predict the tax rebate payment dates for the subsequent years.

Using the same formula, below are the official Carbon Tax Rebate (CAIP) payment dates for 2024: 

Quarter	Payment Date
1st quarter	January 15, 2024
2nd quarter	April 15, 2024
3rd quarter	July 15, 2024
4th quarter	October 15, 2024

Depending on your bank and payment method, you may receive the rebate earlier or later than the above dates. 

Direct bank deposits usually land faster while cheque deposits may take up to 3 days to arrive at your address.

Banks that usually make fast direct deposits include KOHO, Tangerine, PC Financial and other online banks as they have a low number of clients compared to traditional banks.

In case you don’t receive your rebate after 10 business days from the payment date, you should notify the Canada Revenue Agency for rectification.

To stay updated about any changes on the Carbon Tax Rebate for 2024, sign up for your newsletter below.

How is Carbon Tax Rebate (CAIP) Paid?

Gone are the days when the rebate was only paid annually through cheque. 

Today, you choose how to receive the rebate quarterly— either through cheque or direct deposit.

By default, the CRA will send the payment through the method you receive your tax refund. So you are free to change the payment method.

As you might know, direct deposit lands faster as your payment will be deposited directly to your bank account usually before or on the payment date depending on your bank. To set up direct deposit, visit this CRA page. 

But if you choose to receive the rebate through cheque, then it may take up to three business days for the cheque to arrive at your address. 

Recently, some Canadians started receiving a direct deposit of the Carbon Tax Rebate with the description “Canada Fed”. So don’t be confused when you get a deposit with this description.  

Learn more about other benefits that appear with the same description under our Canada Fed Deposit article.

How Often is Carbon Tax Rebate (CAIP) Paid?

The Carbon Tax Rebate (CAIP) is paid quarterly in the months of January, April, July and October.

It used to be paid annually during income tax returns. However, the frequency changed to quarterly in 2021.

Each quarter, a single payment is made for each recipient.  

But if you file your previous tax returns, you may receive double payments covering the retroactive payments.

What is Carbon Tax Rebate? Climate Action Incentive (CAIP) Explained

The Carbon Tax Rebate,  formally known as Climate Action Incentive Payment (CAIP), is a tax rebate that seeks to offset the cost of federal carbon pollution pricing.

This tax-free benefit is funded from the direct fuel proceeds of the federal carbon pollution pricing and is administered to the eligible residents of:

• Alberta
• Manitoba
• Ontario
• New Brunswick
• Newfoundland and Labrador
• Nova Scotia
• Prince Edward Island
• Saskatchewan

The excluded provinces and territories of British Columbia, Quebec, Northwest Territories, Nunavut and Yukon — have their various tax rebates.

Why are they excluded? Because their carbon pollution pricing standards don’t meet the benchmark of the federal government. 

So the Canada Revenue Agency (CRA) administers the Carbon Tax Rebate (CAI) on behalf of the aforementioned provinces only.

The rebate consists of a basic amount and a supplement amount. The basic amount constitutes 90% of direct fuel proceeds while the supplement amount makes up 10% of fuel proceeds. 

Who is Eligible For Carbon Tax Rebate (CAIP)?

To qualify for the Carbon Tax Rebate, you must meet the following eligibility: 

1. Residence Eligibility 

At the beginning of the payment month, you should be:

• A Canadian resident a month before the payment month
• A resident of an applicable province on the first day of the payment month. The applicable provinces are: Alberta, Manitoba, Ontario, New Brunswick, Newfoundland and Labrador, Nova Scotia, Prince Edward Island and Saskatchewan

2. Age Eligibility

At the beginning of the payment month, you should be:

• 19-year old, or
• Under 19-year old if (a) you have or had a spouse/common-law partner, or (b) you are/were a parent and live(d) with your child

 3. Child Eligibility (Optional) 

This is an optional eligibility applicable to parents who have a child or children. 

If you meet the eligibility of Canada Child Benefit (CCB), you will get additional child credit on your Carbon Tax Rebate (CAIP).

However, you must meet all the following eligibility at the beginning of the payment month for your child to qualify for CAIP: 

• Your child is registered for Canada Child Benefit (CCB)
• Your child should be under the age of 19
• You live with your child 
• You’re the primary person responsible for the care and upbringing of your child 

How Much Carbon Tax Rebate (CAIP) Will I Get?

The Carbon Tax Rebate (CAIP) amount you will get will depend on your: 

• Marital status
• Family size
• Province 
• Primary residence (rural or urban area except for PEI residents) 

As noted earlier, the rebate consists of basic and supplement amounts. 

The basic amount is funded from 90% of direct fuel proceeds while the supplement amount constitutes 10% of fuel proceeds. 

That explains why the base amount is higher than the supplement amount. 

In the following passages, we shall look at the maximum basic and supplement amount for the 2022 base year. 

Maximum Basic Amounts

The basic amount is administered to every CAIP beneficiary.

Below is the breakdown of the maximum basic amounts for the 2023/2024 payment period:

Province	Individual	Spouse/Common-Law Partner	Under 19-Year-Old Child	1st Child in a Single-Parent Family	Total
Alberta	$193	$96.50	$48.25	$96.50	$434
Manitoba	$132	$66	$33	$66	$297
New Brunswick	$92	$46	$23	$46	$207
Newfoundland and Labrador	$164	$82	$41	$82	$369
Nova Scotia	$124	$62	$31	$62	$279
Ontario	$122	$61	$30.50	$61	$275
Prince Edward Island	$120	$60	$30	$60	$270
Saskatchewan	$170	$85	$42.50	$85	$383

Carbon Tax Rebate (CAIP) Supplement

The Carbon Tax Rebate (CAIP) supplement is a 10% of direct fuel proceeds administered only to those who are primarily residing outside a Census Metropolitan Area (CMA) of CAIP-applicable provinces. 

However, all CAIP recipients in Prince Edward Island receive the supplement automatically on their respective base amount irrespective of their primary residence. 

That said, let’s now look at the maximum supplement for the 2022 base year. 

Maximum Supplement Amounts

Below is the breakdown of the maximum supplement amounts for the 2023/2024 period: 

Province	Individual	Spouse/Common-Law Partner	Under 19-Year-Old Child	1st Child in a Single-Parent Family	Total
Alberta	$19.30	$9.65	$4.82	$9.65	$43.42
Manitoba	$13.20	$6.60	$3.30	$6.60	$29.70
New Brunswick	$9.20	$4.60	$2.30	$4.60	$20.70
Newfoundland and Labrador	$16.40	$8.20	$4.10	$8.20	$36.90
Nova Scotia	$12.40	$6.20	$3.10	$6.20	$27.90
Ontario	$12.20	$6.10	$3.05	$6.10	$27.45
Saskatchewan	$17	$8.50	$4.25	$8.50	$38

If you’re not a resident of Prince Edward Island, you must tick the box on the second page of your income tax and benefit return to claim the rural supplement. Your spouse or common-law partner must do the same if applicable.

The CRA will send your rural supplement together with the basic amount if you meet the eligibility. 

But if you have a spouse or common-law and they file their return before you, then the supplement will be paid to them, and vice versa. 

To learn more about the supplement eligibility, visit the CRA website.

How is Carbon Tax Rebate (CAIP) Calculated?

Unlike other government benefits, the Carbon Tax Rebate is not income-tested. That’s, it’s not calculated based on your income level. 

Rather, it is calculated based on your marital status, family size, province and primary residence.

Visit the CRA website to get the calculator sheet of your province. 

How to Get Carbon Tax Rebate (CAIP) Payment

Do you need to apply for the Carbon Tax Rebate (CAIP) to get it? That’s a frequently asked question among potential applicants.

The simple answer is no! 

As an existing Canadian, you will automatically qualify and get the rebate every quarter so long as you file your income tax return and benefit return.

The CRA will send the full payment to you or your spouse/common-law partner — depending on who filed their returns first. 

Carbon Tax Rebate (CAIP) For Newcomers to Canada

If you’re a newcomer to Canada, you need to apply to get the Carbon Tax Rebate (CAIP). 

All you need to apply is to fill out one of the forms below that applies to you and submit it to your tax centre: 

Category	Form
Citizenship, residency and Statement of Income capturing	Form RC66SCH, Status in Canada and Income Information for the Canada Child Benefits Application
Canada Child Benefit and other child and family benefits applications	Form RC66, Canada Child Benefits Application
If you don’t have a child	Form RC151, GST/HST and CAI Credit Application for Individuals Who Become Residents of Canada

FAQs on Climate Action Incentive (CAIP) Dates

When should I expect my Carbon Tax Rebate?

You should expect your Carbon Tax Rebate every 15th of January, April, July and October. But if the 15th falls on a weekend or a public holiday, expect the rebate on the last business day before the 15th.

Is the Carbon Tax Rebate (CAIP) taxable? 

The Carbon Tax Rebate (CAIP) is not taxable. 

Is the Carbon Tax Rebate (CAIP) paid monthly?

No!  The Carbon Tax Rebate is paid quarterly in the months of January, April, July and October.

Can both husband and wife claim the Climate Action Incentive?

No! Only the spouse or common-law partner who filed their returns first will get the Climate Action Incentive Payment (CAIP). 

However, the CRA will split your Carbon Tax Rebate 50/50 with your (ex)spouse if you share custody of your child(ren) with them as long as you meet the eligibility.

Why didn’t I get my Carbon Tax Rebate (CAIP)? 

There are different reasons why you didn’t receive the Carbon Tax Rebate. Below at the common reasons: 

1. Missed tax return: If you’re single, or you and your spouse/common-law partner didn’t file your annual income tax and benefit return, you may not receive the rebate. 
2. Bank delay: It could be as a result of bank delay or cheque delivery delay. Contact the CRA after 10 days of waiting provided you meet the rebate eligibility.  
3. Debt: The CRA recently resumed debt deduction on tax rebates which it paused due to COVID-19. This means that if you owe the federal or your provincial/territorial government, the CRA may use your entitled rebate to offset the outstanding debt. However, you can contact the CRA to negotiate the repayment if you’re facing significant financial hardship.
4. Change of address: If you receive the rebate through cheque and you recently changed your address without updating the CRA, you may miss the payment. 
5. Newcomer to Canada: If you’re a newcomer, you must apply for CAIP to receive the Carbon Tax Rebate.

Does everyone get the Carbon Tax Rebate (CAIP)?

No! The Carbon Tax Rebate (CAIP) is only available to the eligible residents of eight provinces, namely: Alberta, Manitoba, Ontario, New Brunswick, Newfoundland and Labrador, Nova Scotia, Prince Edward Island and Saskatchewan. 

The excluded provinces and territories have their Carbon Tax Rebate programs as follows: 

• British Columbia BC Climate Action Tax Credit (BCCATC)
• Québec Emission Allowance
• Northwest Territories NWT Carbon Tax Offsets
• Nunavut Carbon Credit
• Yukon’s Carbon Rebate