If you live in one of Canada’s eight carbon pricing provinces, get ready: the Canada Carbon Rebate—formerly known as the Climate Action Incentive Payment—will arrive in mid‑August 2025. Eligible households will receive a tax‑free, quarterly payment, helping offset rising energy and fuel costs.
Plus, residents in small and rural communities now qualify for a generous 20% rural top‑up, up from the previous 10%. Here’s everything you need to know to make sure you get the most out of your carbon rebate.
What Is the Carbon Rebate and When Is It Paid?
The Canada Carbon Rebate is a quarterly payment made to residents of provinces where federal carbon pricing applies. In mid‑August 2025, the CRA will issue the next installment via:
- Direct deposit around August 15–16, or
- Paper cheques arriving a few days later for those not enrolled in direct deposit.
There’s no application required—the rebate is calculated based on your 2024 tax return, combined household composition, and rural status.
Which Provinces Are Eligible?
Only these eight provinces receive federal carbon rebates:
- Alberta
- Saskatchewan
- Manitoba
- Ontario
- Nova Scotia
- New Brunswick
- Prince Edward Island
- Newfoundland & Labrador
Provinces like British Columbia, Quebec, Yukon, Nunavut, and Northwest Territories run their own programs and do not qualify.
Rural Top‑Up: Bigger Payments for Small Communities
One big change in 2025 is that the rural supplement is now 20% (previously 10%) of the base rebate amount. If you live outside a Census Metropolitan Area (CMA)—based on your postal code and census data—you qualify for the extra amount, with no application needed.
Carbon Rebate Breakdown by Province (Quarterly Base + Rural)
| Province | Single Adult | Couple | Each Child | Family of 4 |
|---|---|---|---|---|
| Alberta | $175 (+20% → $210) | $262.50 (→ $315) | $87.50 (→ $105) | $700 (→ $840) |
| Saskatchewan | $170 (→ $204) | $255 (→ $306) | $85 (→ $102) | $680 (→ $816) |
| Manitoba | $150 (→ $180) | $225 (→ $270) | $75 (→ $90) | $600 (→ $720) |
| Ontario | $140 (→ $168) | $210 (→ $252) | $70 (→ $84) | $560 (→ $672) |
| New Brunswick | $120 (→ $144) | $180 (→ $216) | $60 (→ $72) | $480 (→ $576) |
| Nova Scotia | $124 (→ $149) | $186 (→ $223) | $62 (→ $74.40) | $496 (→ $595) |
| Newfoundland & L. | $132 (→ $158) | $198 (→ $238) | $66 (→ $79) | $528 (→ $634) |
| Prince Edward I. | $110 (all qualify) | $165 | $55 (→ $66) | $440 (→ $528) |
Note: PEI residents automatically receive the rural top‑up in their base amounts.
Eligibility Checklist
To qualify for the August 2025 Carbon Rebate:
- Be a resident of one of the eight eligible provinces.
- Be at least 19 years old, or live with a spouse or dependent.
- Have filed your 2024 tax return, even if you had no income.
- Indicate your rural status by checking the corresponding box on your return (if applicable).
- You don’t need to apply separately—eligibility is based on your tax return and address.
How to Make Sure Your Rebate Arrives Smoothly
File your 2024 income tax return early—on paper or electronically.
Enroll in direct deposit via CRA My Account for fastest payout.
Verify your postal address and banking information is accurate.
Ensure your rural designation is correctly recorded.
Monitor payment notice and deposit status via CRA My Account.
Why This Rebate Matters in 2025
With energy and transportation costs rising, most families are under financial pressure. The Carbon Rebate helps ease that strain—turning carbon pricing revenues back into your pocket.
For many households, the rebate exceeds the amount paid in carbon pricing, offering a net gain. The 20% rural top‑up further helps bridge the gap for those with fewer fuel alternatives.
The August 2025 Canada Carbon Rebate, including the boosted 20% rural top‑up, delivers critical financial relief right when energy and fuel costs are straining budgets. Filing your taxes on time and verifying your details can ensure you receive your full rebate—up to several hundred dollars per household, per quarter.
Living in a rural area? That 20% top‑up could mean hundreds more. Make sure to check your eligibility now and stay alert for your mid‑August deposit or cheque.
This rebate not only offsets costs—it reflects a policy balance between climate action and household support.
FAQs
Do I need to apply for the rebate separately?
No. The rebate is issued automatically if you filed your 2024 tax return and reside in a qualifying province.
How does the rural top‑up work?
If your primary residence is outside a major metropolitan area, the CRA will apply a 20% supplement—no extra application required.
Why did I miss the July rebate?
The July payment was skipped due to administrative updates. Payments will resume normally on a quarterly schedule starting mid‑August.