The Canada Carbon Rebate (CCR), formerly known as the Climate Action Incentive Payment (CAIP), returns carbon pricing proceeds directly to households in provinces where the federal fuel charge applies. Payments are made quarterly and are not taxable. The rebate amount depends on your province of residence and family size. A rural supplement adds 20% for residents outside a Census Metropolitan Area (CMA).
Quick Answer
For 2025-26, annual CCR base amounts range from $760 (Alberta single adult) to $212 (Prince Edward Island single adult), with family supplements for each additional household member. Rural residents receive an additional 20% on top of the base amount. The rebate does not phase out with income — all eligible residents receive the full amount regardless of how much they earn.
How the CCR Is Calculated
The CCR for a year = base amount (province-specific) + spouse/partner amount + per-child amount. For 2025-26:
– The primary individual receives the base amount
– The spouse or common-law partner adds an equal spouse amount (same as base in most provinces)
– Each child under 19 adds a per-child supplement
– Residents outside a Census Metropolitan Area (CMA) receive an additional 20% rural top-up
Payments are issued quarterly: April, July, October, and January. Each quarterly payment equals 25% of the annual entitlement.
2025-26 Annual CCR Amounts by Province
| Province |
Adult |
Spouse |
Per Child |
Single Parent Supplement |
| Alberta |
$760 |
$380 |
$190 |
$190 |
| Saskatchewan |
$704 |
$352 |
$176 |
$176 |
| Manitoba |
$600 |
$300 |
$150 |
$150 |
| Ontario |
$560 |
$280 |
$140 |
$140 |
| New Brunswick |
$380 |
$190 |
$95 |
$95 |
| Nova Scotia |
$328 |
$164 |
$82 |
$82 |
| Prince Edward Island |
$212 |
$106 |
$53 |
$53 |
| Newfoundland and Labrador |
$596 |
$298 |
$149 |
$149 |
Note: PEI residents automatically receive the 20% rural supplement as PEI has no CMAs. Quebec, British Columbia, and the territories set their own carbon pricing and do not receive the federal CCR.
Rural Supplement
Residents who live outside a Census Metropolitan Area (CMA) receive a 20% rural supplement on their total CCR entitlement. CMAs are urban areas with a population of 100,000 or more. The CRA uses postal code to determine eligibility. As of the 2024 payment year, CRA applies the rural supplement automatically — you no longer need to tick a box on the T1 return.
Verified Against Source
CCR amounts are published annually by the Department of Finance and updated each April when the new federal fuel charge year begins. The 2025-26 amounts reflect Finance Canada’s official schedule. The CCR is not taxable and does not reduce means-tested benefits such as the GIS or GST credit. Source: canada.ca/en/department-finance/news/2025/03/canada-carbon-rebate-amounts-for-2025-26.html
Edge Cases
Moved between provinces: The CCR is based on province of residence on the first day of the payment month. If you move mid-year your entitlement is based on where you live when each payment issues.
New residents and newcomers: You must file a Canadian tax return to receive the CCR. Newcomers can apply for the CCR directly without waiting for the April filing deadline by completing Form RC151.
Shared custody: Each parent in a shared-custody arrangement claims 50% of the child supplement per child.
Separated and divorced: Only one spouse claims the family supplement. The spouse with the lower net income generally claims the children unless a different arrangement is agreed.
Frequently asked questions
- What is the Canada Carbon Rebate?
- The Canada Carbon Rebate (CCR) is a quarterly, non-taxable payment that returns federal carbon pricing revenues to households in provinces where the federal fuel charge applies. It replaced the Climate Action Incentive Payment (CAIP) starting with the April 2024 payment. Alberta, Saskatchewan, Manitoba, Ontario, New Brunswick, Nova Scotia, PEI, and Newfoundland receive the federal CCR.
How much is the Canada Carbon Rebate for 2025?
For 2025-26, the base amounts range from $212 per year (PEI single adult) to $760 per year (Alberta single adult). Each additional family member adds a spouse amount and per-child supplement. Rural residents outside a Census Metropolitan Area receive an additional 20% on top of the total.
Do I have to apply for the Canada Carbon Rebate?
For most Canadians, no. If you file your annual T1 tax return on time, CRA calculates and issues the CCR automatically. Newcomers who have not yet filed a return can apply directly using Form RC151. Shared-custody arrangements are split automatically if both parents report the same children on their returns.
Is the Canada Carbon Rebate taxable?
No. The CCR is not taxable income and does not appear on a T4A. It does not reduce eligibility for income-tested benefits such as the GIS, GST credit, or OAS.
Who receives the rural supplement?
Residents who live outside a Census Metropolitan Area (CMA) automatically receive a 20% rural supplement on their total CCR amount. CRA uses your postal code on file to determine eligibility. PEI has no CMAs, so all PEI residents receive the rural supplement automatically.
When are Canada Carbon Rebate payments issued?
Payments are issued quarterly: April, July, October, and January. Each payment equals 25% of the annual entitlement. The April payment covers the new federal fuel charge year (April 1 to March 31 of the following year).
Which provinces receive the federal CCR?
Alberta, Saskatchewan, Manitoba, Ontario, New Brunswick, Nova Scotia, Prince Edward Island, and Newfoundland and Labrador receive the federal CCR. Quebec, British Columbia, Yukon, and the Northwest Territories have their own carbon pricing and do not participate in the federal program. Nunavut is exempt from the federal fuel charge entirely.
How does shared custody affect the CCR?
Each parent in a shared-custody arrangement receives 50% of the applicable child supplement per child. Both parents must report the shared-custody arrangement on their T1 returns. CRA divides the supplement equally regardless of the percentage split in the custody agreement.
Can I receive the CCR if I am a new immigrant?
Yes. Newcomers who are Canadian residents and live in a CCR province are eligible. Since newcomers may not yet have filed a T1, CRA created Form RC151 (CCR Credit Application for Individuals Who Become Residents of Canada) to allow newcomers to apply directly without waiting for the annual filing cycle.
What happened to the Climate Action Incentive Payment?
The Climate Action Incentive Payment (CAIP) was the prior name for the same program. Starting with payments issued in April 2024, the program was renamed the Canada Carbon Rebate (CCR). The structure, provinces covered, and quarterly payment schedule are the same. Payment amounts increased under the new name as carbon pricing rates rose.
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Frequently asked questions
- What is the Canada Carbon Rebate?
- The Canada Carbon Rebate (CCR) is a quarterly, non-taxable payment that returns federal carbon pricing revenues to households in provinces where the federal fuel charge applies. It replaced the Climate Action Incentive Payment (CAIP) starting with the April 2024 payment. Alberta, Saskatchewan, Manitoba, Ontario, New Brunswick, Nova Scotia, PEI, and Newfoundland receive the federal CCR.
- How much is the Canada Carbon Rebate for 2025?
- For 2025-26, the base amounts range from $212 per year (PEI single adult) to $760 per year (Alberta single adult). Each additional family member adds a spouse amount and per-child supplement. Rural residents outside a Census Metropolitan Area receive an additional 20% on top of the total.
- Do I have to apply for the Canada Carbon Rebate?
- For most Canadians, no. If you file your annual T1 tax return on time, CRA calculates and issues the CCR automatically. Newcomers who have not yet filed a return can apply directly using Form RC151. Shared-custody arrangements are split automatically if both parents report the same children on their returns.
- Is the Canada Carbon Rebate taxable?
- No. The CCR is not taxable income and does not appear on a T4A. It does not reduce eligibility for income-tested benefits such as the GIS, GST credit, or OAS.
- Who receives the rural supplement?
- Residents who live outside a Census Metropolitan Area (CMA) automatically receive a 20% rural supplement on their total CCR amount. CRA uses your postal code on file to determine eligibility. PEI has no CMAs, so all PEI residents receive the rural supplement automatically.
- When are Canada Carbon Rebate payments issued?
- Payments are issued quarterly: April, July, October, and January. Each payment equals 25% of the annual entitlement. The April payment covers the new federal fuel charge year (April 1 to March 31 of the following year).
- Which provinces receive the federal CCR?
- Alberta, Saskatchewan, Manitoba, Ontario, New Brunswick, Nova Scotia, Prince Edward Island, and Newfoundland and Labrador receive the federal CCR. Quebec, British Columbia, Yukon, and the Northwest Territories have their own carbon pricing and do not participate in the federal program. Nunavut is exempt from the federal fuel charge entirely.
- How does shared custody affect the CCR?
- Each parent in a shared-custody arrangement receives 50% of the applicable child supplement per child. Both parents must report the shared-custody arrangement on their T1 returns. CRA divides the supplement equally regardless of the percentage split in the custody agreement.
- Can I receive the CCR if I am a new immigrant?
- Yes. Newcomers who are Canadian residents and live in a CCR province are eligible. Since newcomers may not yet have filed a T1, CRA created Form RC151 (CCR Credit Application for Individuals Who Become Residents of Canada) to allow newcomers to apply directly without waiting for the annual filing cycle.
- What happened to the Climate Action Incentive Payment?
- The Climate Action Incentive Payment (CAIP) was the prior name for the same program. Starting with payments issued in April 2024, the program was renamed the Canada Carbon Rebate (CCR). The structure, provinces covered, and quarterly payment schedule are the same. Payment amounts increased under the new name as carbon pricing rates rose.