Millions of Canadians will receive the year’s first carbon rebates from the federal government this week.
January payments of the Canada Carbon Rebate will go out on Wednesday to Canadians in eight provinces: Alberta, Manitoba, New Brunswick, Newfoundland and Labrador, Nova Scotia, Ontario, Prince Edward Island and Saskatchewan.
The tax-free rebates return 90 per cent of the revenue collected by Ottawa from the federal carbon price levied to households in these provinces.
Canada Revenue Agency says the payments are meant to help eligible individuals and families offset the cost of the federal pollution pricing.
British Columbia, Quebec and Northwest Territories have their own carbon pricing system for consumers, so residents there don’t receive the federal payment. Yukon and Nunavut use the federal system but have an agreement to distribute the proceeds themselves.
How much could Canadians get this month?
The carbon rebates are paid out in four yearly instalments.
The amount received will vary from household to household depending on the size of a family and the province they live in.
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Residents of rural areas receive a supplement payment, which was increased last year from 10 per cent to 20 per cent of the basic amount.
Provinces where fossil fuels account for a greater share of electricity have higher carbon rebates because those consumers pay more in carbon pricing.
In Alberta, an individual can expect to receive $225 and an additional $112.50 for a spouse or common-law partner and first child if they’re a single parent. For each child under the age of 19 years, the payment goes up by $56.25.
Individuals in Manitoba can expect to get $150, with that amount going up to $225 if they are a single parent or are married or have a common-law partner. A family of four in Manitoba could expect to receive $300.
The expected carbon rebate for New Brunswick is $95 for individuals and $142.5 for couples. With each child, the payments increase by $23.74.
Individuals in Newfoundland and Labrador can expect a carbon rebate payment of $149 and couples could get $223.5, with the amount rising by $37.25 for each child.
Nova Scotians can expect to get $103 with that amount going up to $154.5 if they are married or are in a common-law relationship or are a single parent. The increment in the rebate for each child is $25.75.
Ontarians can expect a payment of $140 if they are single. Married couples or common-law partners living in the province can expect $210 and an additional $35 for each kid under the age of 19 years. A family of four in Ontario could get $280.
In Prince Edward Island, the expected amount that individuals can get this month is $110. Married couples or common-law partners in P.E.I. could get $165 and a family of four can expect to receive $220. All P.E.I. residents are eligible for the 20 per cent rural top-up.
In Saskatchewan, the expected carbon rebate amount going to individual Canadians is $188, with another $94 for the first child of a single parent and spouse or common-law-partner. An additional $47 is expected to be paid for each child under 19 years.
Who is eligible to get carbon rebates?
To be eligible to get the carbon rebates this month, a person should have been a resident of Canada in December and of one of the eight provinces where it is paid on Jan. 1, 2025, the CRA says.
A person should also be at least 19 years old to get paid. If they are under 19, then they should have or had a spouse or common-law partner, or are (or were) a parent and live(d) with their child.
Payments are made either via mailed cheques or direct bank deposits.
A report by the Parliamentary Budget Officer published in October 2024 found that the vast majority of households get back more in rebates than they pay for carbon pricing, but for most, those gains are erased after broader economic factors are taken into account.
The next carbon rebate payments will go out on April 15.
— with files from The Canadian Press
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