The Climate Action Incentive Payment (CAIP) is now the Canada Carbon Rebate.

February 28, 2024

What was once called the Climate Action Incentive, the quarterly rebate given to Canadians in all provinces except Quebec, British Columbia, and the territories has now been renamed the Canada Carbon Rebate.

The payments are given to residents of those provinces where the federal charge, popularly referred to as the “carbon tax,” is in effect as part of the Government of Canada’s climate change plan and efforts to protect the environment while making the shift to more affordable, sustainable actions.

How does the fuel charge work?

Rather than being sent to you as a separate bill, the fuel charge is added directly to the cost of your gas when you fill up at the pumps and to your home heating bills. The fuel charge gives us the incentive to make cleaner choices and encourages businesses to find green solutions – which benefits us all as it protects the environment and helps grow the economy. The goal of the CAIP is to offset the cost of the fuel charge and put some money back in your pocket.

The Canada Carbon Rebate can’t be claimed as a lump sum refundable tax. Instead, you’ll receive tax-free payments in April, July, October, and January.

How do I get the Canada Carbon Rebate?

If you’re a resident of Ontario, Manitoba, Alberta, Saskatchewan, New Brunswick, Nova Scotia, PEI and Newfoundland & Labrador, you’ll receive the Canada Carbon Rebate automatically as long as you file a tax return.

The only additional step required would be for those who live in small or rural communities to check the box on page 2 of the T1 to indicate that they are eligible for the additional supplement (which is increasing from 10% to 20% in April 2024). People who live in rural areas will get 20% more than those in cities to account for the fact that they likely use more energy, and they don’t have as many public transportation options to reduce their fuel consumption. This supplement is relevant everywhere except for Prince Edward Island, where all residents automatically receive the 20% supplement for small and rural communities.

I don’t live in one of the listed provinces. Why don’t I get this tax credit?

Residents of other provinces won’t be charged the fuel charge and so they won’t be eligible for the Canada Carbon Rebate. This is because they either already have a provincial carbon tax, or their provincial governments are working on a carbon pollution pricing system that meets the federal standard.

How much can I expect to get back when I file?

Your Canada Carbon Rebate amount will depend on the province you live in, your marital status, and the number of children in your family. Because your eligibility depends on your family situation at the beginning of the month you receive a payment (April, July, October or January) instead of the end of the tax year (December 31), you’ll need to let the CRA know if your situation changes. This includes any of the following situations:

  • You and your spouse or common-law partner separate.
  • You move from an eligible province (Alberta, Saskatchewan, Manitoba, Ontario, New Brunswick, Nova Scotia, PEI or Newfoundland & Labrador) to an ineligible province.
  • Your dependant (who is younger than 19) no longer lives with you.

The average family of four in Canada will receive between $760 and $1,800 annually in the rebate.

Here’s a provincial breakdown on rebate payments based on household size and province:

QuarterlyQuarterlyQuarterlyQuarterlyAnnual for Family of Four
ProvinceIndividualSpouse/ common law partnerPer child under 19For the first child in a single-parent family
New Brunswick$95$47.50$23.75$47.50$760
Nova Scotia$103$51.50$25.75$51.50$824
Prince Edward Island*$110$55$27.50$55$880

*Everyone in PEI is eligible for the rural supplement, and it’s been included in their base amount.

If you have any questions about the Canada Carbon Rebate, H&R Block Tax Experts are here to help. Find an office near you to book an appointment today.

Subscribe to our tax tips newsletter.

Get the latest tax news to your email.

By clicking the Subscribe button, you consent to receiving electronic messages from H&R Block Canada regarding product offerings, tax tips, and promotional materials. You can withdraw your consent at any time by emailing us at