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Money guide

Canada Carbon Rebate Explained

The Canada Carbon Rebate (formerly the Climate Action Incentive) returns money to households in provinces where the federal fuel charge applies. It is intended to offset the cost of pricing carbon.

Here is how it works in plain terms.

Get my free quoteRates as low as 6.93% APR for qualified applicants. All financing is subject to credit approval.

Who receives it

  • Residents of provinces where the federal fuel charge applies (currently including Alberta, Saskatchewan, Manitoba, Ontario, and others as designated).
  • You receive it automatically when you file your taxes.
  • Rural residents receive an additional supplement.
  • Quebec and BC run their own systems and are not part of the federal rebate.

How much and when

  • The amount depends on your province, household size, and rural status.
  • Payments are issued quarterly, typically in January, April, July and October.
  • The small rural supplement is added for eligible rural residents.
  • Amounts are set annually and change; check the current Canada Revenue Agency guidance for figures.

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Frequently asked questions

No. You receive it automatically when you file your income tax return and live in an eligible province.

No, the Canada Carbon Rebate is not taxable income.

Not directly, though it is one factor in a household budget. A lower car payment can complement it.

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*No credit check is required to complete the initial pre-qualification. This is not a loan approval or a guarantee of financing. Final approval, rates, terms and conditions are subject to lender requirements and may require a credit check.