What is the BC Climate Action Tax Credit?

The BC Climate Action Tax Credit (CATC) is a quarterly non-taxable provincial benefit for low- and moderate-income BC residents. It offsets the cost of the BC carbon tax on fuel. For 2025-26, the maximum is $504 per adult and $168 per child per year, paid in quarterly instalments in January, April, July, and October.

Who qualifies for the BC Climate Action Tax Credit?

BC residents who file a T1 tax return and have net family income below the phase-out threshold qualify. For 2025-26, the credit begins to phase out at approximately $42,885 net family income. You must be a BC resident on the first day of the payment month.

Do I need to apply for the BC Climate Action Tax Credit?

No separate application is required. Filing your BC T1 tax return (which also includes the Schedule BC provincial return) is sufficient for CRA to calculate and issue the CATC. Ensure your direct deposit and address information is current with CRA.

How much is the BC Climate Action Tax Credit in 2025?

For 2025-26, the maximum is $504 per adult and $504 per spouse or common-law partner, plus $168 per dependent child. A family of four (two adults, two children) receives up to $1,344/year ($336/quarter). The credit phases out above approximately $42,885 net family income.

Is the BC Climate Action Tax Credit the same as the federal Canada Carbon Rebate?

No. They are separate programs. BC's CATC is a provincial benefit funded by BC carbon tax revenues. The federal Canada Carbon Rebate (CCR) applies in provinces without equivalent provincial carbon pricing. Since BC has its own carbon tax, BC residents receive the BC CATC rather than the federal CCR.

When are BC Climate Action Tax Credit payments issued?

Quarterly in January, April, July, and October — the same schedule as the federal GST/HST credit. The July payment begins the new benefit year (July 2025 to June 2026 for the 2025-26 year). Payments are issued with the federal GST/HST credit payment in the same direct deposit or cheque.

Does the BC CATC affect other provincial benefits?

No. The BC CATC is not taxable income and does not affect income-tested benefits or the calculation of other provincial credits. However, changes to your net income (which determines phase-out) can affect multiple provincial and federal income-tested benefits simultaneously.

What is BC's carbon tax rate?

As of 2025, BC's carbon tax is $65/tonne of CO2 equivalent. It applies to combustion fuels (gasoline, diesel, natural gas, propane, etc.) at rates that reflect the CO2 content of each fuel. For gasoline, this equates to approximately $0.153/litre. The CATC is designed to return revenue from this tax to lower-income households.

Can new BC residents claim the CATC?

Yes, once you have filed a BC T1 return as a BC resident. New residents may not receive payments immediately upon arrival — the benefit is calculated from the prior year's filed return. Filing your first BC T1 return establishes your eligibility. You may also contact CRA to notify them of your move to BC and update your address.

Is the BC CATC indexed to inflation?

The BC CATC amounts are reviewed and updated with the annual BC provincial budget. Amounts have increased over time as carbon tax revenues grew. They are not formally indexed to an inflation index (such as CPI) but are adjusted periodically by the BC Ministry of Finance.

BC Climate Action Tax Credit Calculator 2025

Calculate the quarterly BC Climate Action Tax Credit (BCCATC) based on income, marital status, and children. BC's provincial equivalent of the federal carbon rebate.

Reviewed by Canadian Money Help Editorial Updated April 25, 2026 Source BC Gov — Climate Action Tax Credit

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The BC Climate Action Tax Credit (CATC) is a quarterly, non-taxable provincial benefit for low- and moderate-income British Columbians. It offsets the cost of the BC carbon tax on fuel purchases. The credit is administered by CRA and issued alongside the federal GST/HST credit payments in January, April, July, and October. Filing a BC T1 return is required to receive the CATC.

Quick Answer

For the 2025-26 benefit year (July 2025 to June 2026), the BC Climate Action Tax Credit is up to $504 per adult and $168 per child. A family of four with two adults and two children would receive up to $1,344 per year ($504 + $504 + $168 + $168). The credit begins to phase out at net family income of approximately $42,885 (2025 benefit year), reducing at a rate set by the BC government.

How the BC CATC Is Calculated

The annual CATC = base amount + spouse or common-law partner amount + per-child amount, all subject to an income-based phase-out.

For 2025-26:
– Base amount (individual): $504
– Spouse/common-law partner amount: $504
– Per child: $168

Phase-out: The credit reduces by 2% of net family income above approximately $42,885. At approximately $67,885 net family income (for a single adult), the credit reaches $0. Phase-out thresholds are higher for families with children.

Quarterly Payment Schedule

BC CATC is paid in four equal quarterly instalments: January, April, July, and October. Each quarterly payment = annual credit / 4. The July payment begins the new benefit year. Payments are deposited directly to the same bank account on file with CRA for GST/HST credit payments.

BC Carbon Tax Context

BC introduced carbon pricing in 2008 — the first jurisdiction in North America to do so. BC’s carbon tax applies to combustion fuels and currently operates at $65/tonne of CO2 equivalent. The CATC is BC’s mechanism to return carbon tax revenue to lower- and moderate-income households. Unlike the federal CCR (which applies in provinces without equivalent provincial pricing), the BC CATC applies in BC regardless of the federal carbon pricing policy.

Verified Against Source

BC CATC amounts are set by the BC Ministry of Finance and administered by CRA. The benefit amount and phase-out thresholds are updated annually with the provincial budget. Source: gov.bc.ca/gov/content/taxes/income-taxes/personal/credits/climate-action and canada.ca/en/revenue-agency/services/child-family-benefits/provincial-territorial-programs/bc-climate-action-tax-credit.html

Frequently asked questions

What is the BC Climate Action Tax Credit?: The BC Climate Action Tax Credit (CATC) is a quarterly non-taxable provincial benefit for low- and moderate-income BC residents. It offsets the cost of the BC carbon tax on fuel. For 2025-26, the maximum is $504 per adult and $168 per child per year, paid in quarterly instalments in January, April, July, and October.
Who qualifies for the BC Climate Action Tax Credit?: BC residents who file a T1 tax return and have net family income below the phase-out threshold qualify. For 2025-26, the credit begins to phase out at approximately $42,885 net family income. You must be a BC resident on the first day of the payment month.
Do I need to apply for the BC Climate Action Tax Credit?: No separate application is required. Filing your BC T1 tax return (which also includes the Schedule BC provincial return) is sufficient for CRA to calculate and issue the CATC. Ensure your direct deposit and address information is current with CRA.
How much is the BC Climate Action Tax Credit in 2025?: For 2025-26, the maximum is $504 per adult and $504 per spouse or common-law partner, plus $168 per dependent child. A family of four (two adults, two children) receives up to $1,344/year ($336/quarter). The credit phases out above approximately $42,885 net family income.
Is the BC Climate Action Tax Credit the same as the federal Canada Carbon Rebate?: No. They are separate programs. BC’s CATC is a provincial benefit funded by BC carbon tax revenues. The federal Canada Carbon Rebate (CCR) applies in provinces without equivalent provincial carbon pricing. Since BC has its own carbon tax, BC residents receive the BC CATC rather than the federal CCR.
When are BC Climate Action Tax Credit payments issued?: Quarterly in January, April, July, and October — the same schedule as the federal GST/HST credit. The July payment begins the new benefit year (July 2025 to June 2026 for the 2025-26 year). Payments are issued with the federal GST/HST credit payment in the same direct deposit or cheque.
Does the BC CATC affect other provincial benefits?: No. The BC CATC is not taxable income and does not affect income-tested benefits or the calculation of other provincial credits. However, changes to your net income (which determines phase-out) can affect multiple provincial and federal income-tested benefits simultaneously.
What is BC's carbon tax rate?: As of 2025, BC’s carbon tax is $65/tonne of CO2 equivalent. It applies to combustion fuels (gasoline, diesel, natural gas, propane, etc.) at rates that reflect the CO2 content of each fuel. For gasoline, this equates to approximately $0.153/litre. The CATC is designed to return revenue from this tax to lower-income households.
Can new BC residents claim the CATC?: Yes, once you have filed a BC T1 return as a BC resident. New residents may not receive payments immediately upon arrival — the benefit is calculated from the prior year’s filed return. Filing your first BC T1 return establishes your eligibility. You may also contact CRA to notify them of your move to BC and update your address.
Is the BC CATC indexed to inflation?: The BC CATC amounts are reviewed and updated with the annual BC provincial budget. Amounts have increased over time as carbon tax revenues grew. They are not formally indexed to an inflation index (such as CPI) but are adjusted periodically by the BC Ministry of Finance.

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BC Climate Action Tax Credit 2025 amounts

For the 2025 benefit year, the BC CATC provides $556.50 for a single adult, $278.25 for a spouse or common-law partner, and $83.50 per child. A family of four receives $1,001.50 annually, paid in four quarterly instalments. These amounts are confirmed from the CRA BC CATC page for the April 2025 to January 2026 payment period. The credit is reduced by 2% of adjusted family net income above the income ceiling, which is approximately $56,118 for families and $36,901 for singles (2025 figures). BC residents who are also eligible for the federal Canada Carbon Rebate do not receive it; BC’s own carbon pricing system generates the CATC instead.

How the BC CATC relates to BC’s carbon tax

BC introduced its provincial carbon tax in 2008, making it the first Canadian jurisdiction with a broad-based carbon price. Unlike the federal fuel charge backstop, BC’s carbon tax revenue is managed provincially and a portion is returned to residents through the CATC. BC’s carbon tax applies to fossil fuels purchased in BC at a rate of $65/tonne CO2 equivalent (2024 rate). The CATC is designed so that lower-income households receive more in rebates than they pay in carbon tax costs on average. High-income households who consume more fuel and drive more may pay more in carbon tax than they receive in CATC.

Methodology

Annual CATC = $504/adult + $504/spouse + $168/child, minus 2% of net family income above phase-out threshold (~$42,885 for 2025-26). Paid quarterly. BC carbon tax $65/tonne CO2. 2025-26 benefit year (2024 T1).

Frequently asked questions

What is the BC Climate Action Tax Credit?: The BC Climate Action Tax Credit (CATC) is a quarterly non-taxable provincial benefit for low- and moderate-income BC residents. It offsets the cost of the BC carbon tax on fuel. For 2025-26, the maximum is $504 per adult and $168 per child per year, paid in quarterly instalments in January, April, July, and October.
Who qualifies for the BC Climate Action Tax Credit?: BC residents who file a T1 tax return and have net family income below the phase-out threshold qualify. For 2025-26, the credit begins to phase out at approximately $42,885 net family income. You must be a BC resident on the first day of the payment month.
Do I need to apply for the BC Climate Action Tax Credit?: No separate application is required. Filing your BC T1 tax return (which also includes the Schedule BC provincial return) is sufficient for CRA to calculate and issue the CATC. Ensure your direct deposit and address information is current with CRA.
How much is the BC Climate Action Tax Credit in 2025?: For 2025-26, the maximum is $504 per adult and $504 per spouse or common-law partner, plus $168 per dependent child. A family of four (two adults, two children) receives up to $1,344/year ($336/quarter). The credit phases out above approximately $42,885 net family income.
Is the BC Climate Action Tax Credit the same as the federal Canada Carbon Rebate?: No. They are separate programs. BC's CATC is a provincial benefit funded by BC carbon tax revenues. The federal Canada Carbon Rebate (CCR) applies in provinces without equivalent provincial carbon pricing. Since BC has its own carbon tax, BC residents receive the BC CATC rather than the federal CCR.
When are BC Climate Action Tax Credit payments issued?: Quarterly in January, April, July, and October — the same schedule as the federal GST/HST credit. The July payment begins the new benefit year (July 2025 to June 2026 for the 2025-26 year). Payments are issued with the federal GST/HST credit payment in the same direct deposit or cheque.
Does the BC CATC affect other provincial benefits?: No. The BC CATC is not taxable income and does not affect income-tested benefits or the calculation of other provincial credits. However, changes to your net income (which determines phase-out) can affect multiple provincial and federal income-tested benefits simultaneously.
What is BC's carbon tax rate?: As of 2025, BC's carbon tax is $65/tonne of CO2 equivalent. It applies to combustion fuels (gasoline, diesel, natural gas, propane, etc.) at rates that reflect the CO2 content of each fuel. For gasoline, this equates to approximately $0.153/litre. The CATC is designed to return revenue from this tax to lower-income households.
Can new BC residents claim the CATC?: Yes, once you have filed a BC T1 return as a BC resident. New residents may not receive payments immediately upon arrival — the benefit is calculated from the prior year's filed return. Filing your first BC T1 return establishes your eligibility. You may also contact CRA to notify them of your move to BC and update your address.
Is the BC CATC indexed to inflation?: The BC CATC amounts are reviewed and updated with the annual BC provincial budget. Amounts have increased over time as carbon tax revenues grew. They are not formally indexed to an inflation index (such as CPI) but are adjusted periodically by the BC Ministry of Finance.