The final Canada Carbon Rebate is about to be deposited into bank accounts

The final Canada Carbon Rebate is about to be deposited into bank accounts, and for many, there may be a noticeable increase in the April payment as a parting gesture.

This upcoming payment marks the last carbon tax rebate from the federal government before the program comes to a close, with the additional funds being part of the usual annual increase seen each April. Originally, the carbon tax rebate was intended to return most of the revenue generated from the federal fuel charge back to Canadians. However, with Prime Minister Mark Carney eliminating the consumer carbon tax, the government is officially discontinuing the associated rebate program.

This means it's your last chance to receive payment under the federal carbon pricing system, and the Canada Revenue Agency is preparing to distribute the payment soon—provided you've filed your tax return. What is the Canada Carbon Rebate?: Previously known as the Climate Action Incentive Payment, the Canada Carbon Rebate is a tax-free payment issued by the federal government periodically to residents in specific provinces.

It aims to offset the additional costs Canadians incur due to federal pollution pricing, commonly referred to as the carbon tax. The federal fuel charge is designed to be revenue-neutral, meaning all funds collected are returned to the respective provinces or territories. Most of the collected revenue is redistributed to the public via this rebate, with a portion allocated to small businesses, Indigenous communities, and farmers, maintaining fairness while encouraging environmentally friendly choices. Residents in rural and smaller communities qualify for an additional benefit to account for increased travel distances and energy requirements. Who is eligible for the carbon tax rebate in Canada?: The Canada Carbon Rebate is available to all residents living in provinces where the federal pollution pricing system is applicable.

If you're in Alberta, Manitoba, New Brunswick, Newfoundland and Labrador, Nova Scotia, Ontario, Prince Edward Island, or Saskatchewan, you qualify, as these are the only provinces using the federal system. However, residents of British Columbia, Quebec, and the Northwest Territories are not eligible for this rebate, as they have their own carbon pricing systems. Similarly, residents in Nunavut and Yukon follow different processes for returning federal fuel charge revenues. To qualify, you must reside in a participating province and be at least 19 years old, unless you're married, in a common-law relationship, or a parent living with your child, in which case you may still be eligible at a younger age. Families can also receive additional funds for each eligible child already registered for either the Canada Child Benefit or the GST/HST Credit. Your income level does not affect eligibility; if you meet the basic criteria and reside in a participating province, the rebate will appear in your account without extra steps required. The Canada Carbon Rebate is distributed only in provinces that embrace the federal carbon pricing framework: In regions like British Columbia, the Northwest Territories, Nunavut, and Yukon, provincial and territorial governments implement their unique carbon rebates, which are included with the federal GST/HST Credit. Consequently, residents in these areas should have received their final payment by April 4. More on CCR eligibility: How to Apply for the Canada Carbon Rebate: There's no need for a separate application for the Canada Carbon Rebate. If you live in a participating province, simply file your 2024 income tax return, even if you had no income. After your tax return is processed (which typically takes six to eight weeks), the rebate will be automatically issued, assuming you are eligible. If you are married or in a common-law partnership, the rebate will generally go to the person who files their return first. New residents may need to follow additional steps. Families with children should complete the Canada Child Benefits Application (Form RC66 and Form RC66SCH). For those without children, the GST/HST Credit and Canada Carbon Rebate Application (Form RC151) is required. These forms can be submitted to your local tax centre. If you reside in a rural or small community, you may qualify for a 20% top-up on your payment. To claim this, simply check the box on page 2 of your tax return. For the purposes of CCR eligibility, rural status is determined based on whether your primary residence is outside a Census Metropolitan Area according to the 2016 census. There are discussions about expanding eligibility for the rural top-up, but specifics remain uncertain as the payment date approaches. In the 2024 Fall Economic Statement, the government proposed a plan to broaden access to the 20% rural supplement. Under this proposal, more small towns and communities—namely those with populations under 30,000—could begin receiving this extra payment starting April 2025. This change could potentially make an additional 1.6 million individuals eligible, covering areas such as King, Uxbridge, Fort Erie, and Rockland in Ontario, along with Chestermere and Fort Saskatchewan in Alberta. However, as of the time of this publication, this proposal is not finalized yet. A representative from Finance Canada indicated that further details will be provided "in due course" regarding the expansion's application to the last carbon tax rebate. How much is the Canada Carbon Rebate?: The amount you receive from the Canada Carbon Rebate is based on two factors: your province of residence and the number of individuals in your household. For April 2025, payments will see one last increase as part of the federal government's typical annual adjustment that occurs every spring. Each province participating in the federal pollution pricing system has its base rebate rates, and rural or small community residents receive an additional 20% boost except in Prince Edward Island, where this increment is already incorporated into the base amount due to the entire province meeting rural qualifications. Here's what you can expect for the April 2025 payment: - Alberta: $228 for an adult, $114 for a second adult or first child in a single-parent household, plus $57 for each additional child
 - Manitoba: $150 for the first adult, $75 for the second adult or first single-parent child, plus $37.50 per additional child
- New Brunswick: $165 for the first adult, $82.50 for the second adult or first single-parent child, plus $41.25 for each additional child
- Newfoundland and Labrador: $149 for the first adult, $74.50 for the second adult or first single-parent child, plus $37.25 for each additional child
- Nova Scotia: $110 for the first adult, $55 for the second adult or first single-parent child, plus $27.50 for each additional child - Ontario: $151 for the first adult, $75.50 for the second adult or first single-parent child, plus $37.75 for each additional child - Prince Edward Island: $110 for the first adult, $55 for the second adult or first single-parent child, plus $27.50 for each additional child
- Saskatchewan: $206 for the first adult, $103 for the second adult or first single-parent child, plus $51.50 for each additional child For instance, a family of four living in rural
-Alberta can expect to receive a total of $547.20 this month for their final rebate payment.

Is the Canada Carbon Rebate taxable?: No, the Canada Carbon Rebate is not considered taxable income. It is a tax-free benefit, meaning you won't have to report it as income on your tax return. The purpose of the rebate is to return funds that you have already contributed through the federal fuel charge—so any amount you receive is entirely yours to keep. The last Canada Carbon Rebate payment is scheduled for release on Tuesday, April 22—one week later than initially targeted for April 15. However, there is a stipulation; to receive your payment on this date, you needed to file your 2024 tax return electronically by April 2. If you missed this early deadline, don't worry—you will still receive the rebate, but it may take a bit longer to process. Typically, the CRA sends out your rebate approximately six to eight weeks after processing your return, although quicker payments are possible if you file online and have set up direct deposit.