Carbon Tax Rebate Increase 2024, Eligibility, Amount, and Payout Schedule!

The Canadian government’s carbon pricing plan, CAI, offers rebates to counter carbon tax costs. From April 1, 2024, the federal carbon price rose from $65 to $80 per tonne, affecting household budgets.

Carbon Tax Rebate Increase 2024

The Canadian government’s carbon pricing plan, known as the Climate Action Incentive (CAI), includes a rebate system to offset the increased costs associated with a carbon tax.

As of April 1, 2024, the federal carbon price increased from $65 to $80 per tonne, which could impact household budgets. However, the good news is that the carbon tax rebate has also seen a corresponding increase to help alleviate this burden.

Carbon Tax Rebate Eligibility 2024

Key eligibility criteria for receiving a Carbon tax Rebate:

You must be a resident of Canada for tax purposes on the first day of the month the payment is issued.
You must reside in a province that applies the federal fuel charge. This excludes provinces with their own carbon pricing systems like Quebec and British Columbia.
You must be at least 19 years old at the start of the payment month. Exceptions apply for individuals under 19 with a spouse/common-law partner or those who are/were parents living with a child.
You must have filed your income tax return for the previous tax year.
Eligible Child:
- Your child must be under 19 years old.
- Your child lives with you.
- You are primarily responsible for their care and upbringing.
- Your child is registered for the CCR (or already registered for the CCB or GST/HST credit).
Income Thresholds: The rebate amount varies based on your province of residence and total income for the previous tax year.
- Individual: Eligible for a full rebate if your income falls below a certain threshold (around $49,143 for 2023). The rebate amount gradually decreases as your income increases.
- Families: The income threshold for receiving the full rebate is higher for families, considering additional household members.

Carbon Rebate Schedule 2024

The Canada Carbon Rebate is distributed four times a year through direct deposit or cheque. Here’s the schedule for 2024:

First Payment: April 15, 2024
Second Payment: July 15, 2024
Third Payment: October 15, 2024
Fourth Payment: January 15, 2025

If the 15th falls on a weekend or statutory holiday, the payment will be issued on the last business day before that date.
To ensure you receive the first payment on time (April 15, 2024), you have to file your income tax return electronically by March 15, 2024.
If you filed after this date, your first payment will be included in a subsequent payment after your return is processed.

Carbon Tax Rebate Amounts

The Canada Carbon Tax Rebate amount includes;

Individual Rebates:
- A full rebate is available for individuals with income below a specific threshold (approximately $49,143 for 2023).
- The rebate amount gradually decreases as your income increases beyond the threshold.
Family Rebates:
- The income threshold for receiving the full family rebate is higher than for individuals, reflecting additional household members.
- Similar to individuals, the rebate amount for families reduces as income rises.
Average Rebates (2024): The government provides average rebate figures to give a general idea. These figures are not guaranteed and can vary based on your specific situation. Here are some examples:
- Average Individual Rebate: $1,056
- Qualified Households: $1,779 (may include more than two adults)
- Alberta Family of Four: $1,800 (distributed quarterly as $450 per payment)

Factors affecting Canada Carbon Tax Rebate 2024

Here’s a breakdown of the key factors affecting the Canada Carbon Tax Rebate amount:

Province of Residence:

The federal carbon tax rebate applies only in provinces that adhere to the federal fuel charge.
Provinces with their own carbon pricing systems, like Quebec and British Columbia, have separate rebate structures.

Total Income:

The Canada Carbon Rebate is designed to be more beneficial for low- and middle-income earners.
Individuals with income below a specific threshold (around $49,143 for 2023) receive the full rebate amount.

Family Size:

The rebate program acknowledges the additional expenses faced by families.
Therefore, families with more dependents generally qualify for higher rebate amounts compared to single individuals.

Rural vs. Urban Location:

While not a major factor, there’s a rural supplement that provides a slight increase in the rebate for residents of small and rural communities.
Starting in April 2024, this rural supplement is expected to increase to 20% of the base rebate amount (pending Royal Assent).