The Canada Carbon Rebate (CCR), formerly known as the Climate Action Incentive Payment, is a federal initiative aimed at offsetting the costs associated with carbon pricing.
In 2025, the CCR continues to provide financial relief to Canadian households, particularly in provinces where the federal carbon pricing system applies.
This article delves into the specifics of the CCR, including eligibility, payment amounts, and its role in promoting energy affordability.
What Is the Canada Carbon Rebate?
The Canada Carbon Rebate is a tax-free payment issued quarterly by the Canada Revenue Agency (CRA). It is designed to return a portion of the revenue collected from the federal carbon pricing system back to individuals and families.
The rebate aims to mitigate the financial impact of carbon pricing on households, ensuring that the majority of Canadians receive more in rebates than they pay in carbon taxes.
Eligibility Criteria
To qualify for the CCR in 2025, individuals must meet the following conditions:
- Residency: Must be a resident of Canada in the month prior to the payment and reside in an eligible province on the first day of the payment month. Eligible provinces include:
- Alberta
- Manitoba
- New Brunswick
- Newfoundland and Labrador
- Nova Scotia
- Ontario
- Prince Edward Island
- Saskatchewan
- Age: Must be at least 19 years old in the month before the CRA issues a payment. Individuals under 19 may qualify if they have a spouse or common-law partner or are a parent living with their child.
- Tax Filing: Must have filed a 2024 income tax and benefit return.
Payment Amounts by Province
The CCR payment amounts vary based on province and household composition. Below is a summary of the quarterly base amounts for 2025:
| Province | Individual | Spouse/Partner | Per Child | Rural Supplement (20%) |
|---|---|---|---|---|
| Alberta | $228 | $114 | $57 | Yes |
| Manitoba | $150 | $75 | $37.50 | Yes |
| New Brunswick | $165 | $82.50 | $41.25 | Yes |
| Newfoundland and Labrador | $149 | $74.50 | $37.25 | Yes |
| Nova Scotia | $110 | $55 | $27.50 | Yes |
| Ontario | $151 | $75.50 | $37.75 | Yes |
| Prince Edward Island | $110 | $55 | $27.50 | Included |
| Saskatchewan | $206 | $103 | $51.50 | Yes |
Note: The rural supplement provides an additional 20% to individuals residing in small and rural communities.
Payment Schedule
The CCR is distributed quarterly, with payments typically issued in:
- April
- July
- October
- January
For 2025, the final CCR payment was issued starting 2025. To receive this payment, individuals must have filed their 2024 income tax and benefit return electronically by May 2, 2025. Those who filed after this date will receive their payment once their return is assessed .
How to Receive the CCR
Eligible individuals do not need to apply separately for the CCR. The CRA automatically calculates and issues payments based on information provided in the annual income tax and benefit return.
Payments are made via direct deposit or mailed cheque, depending on the individual’s preference.
Impact on Canadian Families
The CCR plays a crucial role in supporting Canadian families by:
- Offsetting Carbon Costs: Helps mitigate the financial impact of carbon pricing on households.
- Promoting Energy Affordability: Provides financial relief, especially to low- and middle-income families.
- Encouraging Sustainable Practices: Incentivizes households to adopt energy-efficient behaviors and reduce carbon footprints.
The Canada Carbon Rebate in 2025 continues to be an essential tool in Canada’s climate policy, providing financial support to households and promoting energy affordability.
By returning a portion of carbon pricing revenues to Canadians, the CCR ensures that the transition to a low-carbon economy is equitable and inclusive.
FAQs
Do I need to apply for the Canada Carbon Rebate?
No, the CCR is automatically issued by the CRA based on your annual income tax and benefit return.
How is the rural supplement determined?
The rural supplement is an additional 20% of the base amount for individuals residing in small and rural communities, as defined by the CRA.
What happens if I file my tax return late?
If you file your 2024 income tax and benefit return after May 2, 2025, your CCR payment will be issued once your return is assessed.