This month, the Canada Revenue Agency (CRA) is sending out its final Canada Carbon Rebate (CCR) payments to eligible Canadians. However, the CRA has also announced that it may have overpaid some individuals and is requesting that money back. Affected taxpayers will start receiving official notifications from April 15, 2025. The CRA defines the rural supplement as a 20 percent top-up for residents of small and rural communities, which varies from province to province, ranging from $22 for an individual in Nova Scotia to $45.60 in Alberta.
The final CCR payments are due to be issued on April 22, 2025, but those who have not yet filed their 2024 taxes could see delays in receiving their payments. Individuals who file later will receive their final payment once their 2024 return is assessed.
In March 2025, Mark Carney became Prime Minister and signed an order-in-council that ended the consumer carbon tax, with April 1 marking the cessation of the tax. Robin Boadway, Emeritus Professor at Queen's University, highlighted that this last payment will be for taxes that will never be collected. "The issue is pretty straightforward," he said. "The carbon tax rebate was paid in advance of carbon tax revenues being collected. When the carbon tax was terminated, no more revenues were coming in, so there was no longer a basis for continuing the rebate." He estimated the cost of this final rebate at between $2.7 billion and $3 billion.
Canadians have begun receiving their final carbon rebate payments. For those who filed their 2024 tax return no later than April 2, 2025, the money is being sent out starting on April 22, 2025. If you file after April 2, you will receive your final payment once your 2024 return is assessed. There will be no further quarterly CCR payments after the April 2025 payment.
The last tax-free payment will be sent to eligible individuals in provinces where the CCR applies, including Alberta, Saskatchewan, Manitoba, Ontario, New Brunswick, Nova Scotia, Prince Edward Island, and Newfoundland and Labrador. However, the rebate does not apply in British Columbia, Yukon, the Northwest Territories, Nunavut, and Quebec.
The payment amount varies by province and includes a basic amount and a supplement for residents who live in rural areas. For those who receive their tax refund by direct deposit, the rebate will also be paid via direct deposit. The government notes, "If you have a spouse or common-law partner, only one of you can get the payment for the family. It will usually be paid to the person whose tax return is assessed first. No matter which one of you receives the payment, the amount will be the same." Eligible residents do not need to apply for the rebate; it is sent automatically as long as an income tax return is filed.
If you've been waiting for your final carbon tax rebate, today marks the big day — the Canada Carbon Rebate is officially being deposited across the country for the last time. While many Canadians will see an increase in their bank accounts, others might be left wondering why their payment hasn't arrived. The quarterly rebate, which was tied to the now-defunct federal consumer carbon tax, is concluding, with April 22 marking the very last payout.
A key reason some individuals might not have received their payment relates to the requirement of filing taxes early. To receive the April Canada Carbon Rebate, you had to file your 2024 tax return electronically by April 2, 2025. This is because the rebate is part of the new benefit year and relies on up-to-date details like your address and household setup to calculate eligibility and payment amount. But if you missed that deadline, don’t panic just yet. If you filed after the cutoff, the CRA indicates that most people can expect to receive their payment within six to eight weeks of their return being processed.
Not every province qualifies for the rebate. The Canada Carbon Rebate is only available to residents of provinces that participated in the federal carbon pricing system. This includes Alberta, Manitoba, New Brunswick, Newfoundland and Labrador, Nova Scotia, Ontario, Prince Edward Island, and Saskatchewan. Residents of British Columbia, Quebec, and the three territories are not eligible for this rebate, as they had their own provincial or territorial carbon pricing programs and managed their own rebates.
As the April 2025 payment marks the final chapter in Canada’s carbon tax rebate program, it is important to note that the rebate was introduced in 2019 as the Climate Action Incentive Payment. Designed to return money collected through the federal fuel charge back to Canadians, this program is now concluded, especially since Prime Minister Carney officially scrapped the consumer carbon tax. If you received the payment today, you may have noticed it is slightly higher than usual; the final payout includes the annual increase that typically takes effect every April.
For those who haven’t filed their taxes yet and are wondering where their rebate is, this serves as a reminder to take action. You’re still eligible, but you need to file your taxes to receive your payment. The CRA has provided clear guidance on how to ensure you receive your rebate, emphasizing the importance of timely filing.
As the country transitions away from the carbon tax system, many Canadians are left contemplating the implications of these changes. The final CCR payment represents not just a financial transaction but also a significant shift in the government’s approach to carbon pricing and environmental policy. With the end of this rebate, Canadians are now facing a new landscape in terms of tax benefits related to environmental initiatives. As the government moves forward, the focus will likely shift to alternative methods of addressing climate change and supporting households in a more sustainable manner.
