CRA Confirms $1120 Carbon Payment for 2025 – Find Your Province’s Payment Date & Amount

The Canada Revenue Agency (CRA) has officially confirmed that eligible Canadians will receive up to $1,120 in 2025 through the Canada Carbon Rebate (CCR). This federal payment is part of the government’s ongoing effort to offset the cost of carbon ...

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The Canada Revenue Agency (CRA) has officially confirmed that eligible Canadians will receive up to $1,120 in 2025 through the Canada Carbon Rebate (CCR). This federal payment is part of the government’s ongoing effort to offset the cost of carbon pricing policies for households affected by rising fuel and energy prices.

Unlike typical benefits, the CCR is a tax-free direct payment, issued automatically every quarter to eligible residents in provinces where the federal carbon pricing backstop applies.

What Is the Canada Carbon Rebate?

The Canada Carbon Rebate (CCR), formerly known as the Climate Action Incentive Payment, is a federal rebate program that returns money directly to households to help cover the increased cost of carbon pricing.

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The carbon tax affects gasoline, diesel, natural gas, and other fossil fuels, which can raise household energy bills. The CCR offsets these costs by putting the money back into the hands of Canadians.

The rebate is calculated and distributed by the CRA based on your province, family size, and income. Payments are made automatically — no application is required.

Who Is Eligible for the 2025 Canada Carbon Rebate?

To qualify for the CCR in 2025, you must meet these basic eligibility conditions:

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Eligibility FactorDetails
ResidencyMust live in a province where the federal carbon pricing applies
Age19 years or older (or younger if living with a spouse, partner, or parent)
Tax FilingMust have filed a 2024 income tax return with CRA
Family InfoMust have accurate marital status and dependent information with CRA
ProvinceMust reside in Alberta, Ontario, Saskatchewan, or Manitoba

Even Canadians with no income should file a tax return to ensure they qualify for the rebate.

How Much Will You Get? Up to $1,120 Per Year

The amount you receive through the CCR depends on your province and household size. The CRA has published the estimated annual amounts for 2025:

ProvinceSingle AdultCoupleFamily of FourNotes
Alberta$340$680$1,120Highest due to higher fuel prices
Saskatchewan$360$720$1,100High carbon cost impact
Manitoba$330$660$1,020Adjusted for local energy usage
Ontario$300$600$960Moderate carbon cost

Larger families may receive additional amounts per child. For example, single parents or guardians with children receive a top-up per dependent.

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The CCR aims to fully or partially cover the increased energy costs caused by the carbon tax — especially for low- and middle-income households

When Will You Get the Rebate? (CRA Payment Schedule 2025)

The Canada Carbon Rebate is paid quarterly, and the CRA has confirmed the following payment dates for 2025:

QuarterPayment Date
Q1 (Jan–Mar)January 15, 2025
Q2 (Apr–Jun)April 15, 2025
Q3 (Jul–Sep)July 15, 2025
Q4 (Oct–Dec)November 20, 2025

Payments are issued either by:

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  • Direct deposit (if you’ve provided banking info to CRA)
  • Mailed cheque (if not enrolled for electronic payments)

The $1,120 total is split across the four quarterly payments, based on your province and household size.

How Does CRA Calculate Your Carbon Rebate?

The amount of your carbon rebate depends on several key factors:

  • Household Size: Larger families get more support.
  • Province of Residence: Payments vary based on local fuel costs.
  • Number of Dependents: Each child increases the total rebate.
  • Marital Status: Couples receive a higher base amount.
  • Income Level: Although not means-tested, low and middle-income families benefit most.

CRA uses your income tax return to gather all necessary information. No separate application is needed.

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Provinces Where the Carbon Rebate Applies

The CCR only applies in provinces where the federal carbon pricing system is used, known as the “backstop” provinces. As of 2025, this includes:

  • Alberta
  • Saskatchewan
  • Manitoba
  • Ontario

Other provinces like British Columbia and Quebec operate their own carbon pricing systems, and residents receive provincial carbon relief instead of the federal rebate.

Why It’s Important to File Your Taxes

To receive the Canada Carbon Rebate, you must file your 2024 tax return — even if you had no income. CRA relies on this tax return to:

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  • Confirm your eligibility
  • Calculate your household size and income
  • Issue the rebate payment

If you don’t file, you won’t get the payment.

How to Ensure You Get the Rebate Smoothly

To make sure your payments arrive without delay:

  • File your taxes early and accurately
  • Update your address and marital status with CRA
  • Enroll in direct deposit using your CRA My Account
  • Check for CRA emails or messages about your rebate status

No action is needed if your tax and account details are current. CRA will automatically issue your payments every quarter.

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What to Do If You Don’t Receive Your Payment

If you’re eligible but don’t receive your Canada Carbon Rebate, follow these steps:

  1. Log in to CRA My Account to check your payment status
  2. Verify that your 2024 tax return has been filed and processed
  3. Ensure your direct deposit or mailing info is correct
  4. Contact CRA directly if there is no sign of payment after the expected date

Missing or delayed payments can usually be resolved quickly once you verify your details.

Is the Canada Carbon Rebate Taxable?

No. The Canada Carbon Rebate is:

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  • Completely tax-free
  • Not considered income
  • Does not affect your tax refund or benefits

You do not need to declare it on your income tax return.

Why the Canada Carbon Rebate Matters in 2025

The CCR is more than just a financial boost — it’s part of a broader climate and affordability strategy. It helps ensure:

  • Families don’t bear the full brunt of fuel cost increases
  • Low- and moderate-income Canadians remain protected
  • Canada meets its environmental goals without sacrificing affordability

By giving households direct compensation, the program maintains public support for carbon pricing — a cornerstone of Canada’s climate policy.

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Related Federal Payments to Watch

In addition to the CCR, the CRA and federal government offer several other key programs in 2025:

  • OAS Payment 2025: Up to $2,800 for seniors
  • Canada Child Benefit: Up to $666 per child monthly
  • Canada Survivor Allowance: $1,663 for surviving spouses
  • One-Time Seniors Payment: $2,700 for eligible older adults

These programs are separate from the CCR but may be received alongside it, depending on eligibility.

5 Most-Asked FAQs About the Canada Carbon Rebate 2025

1. When is the next Canada Carbon Rebate payment?

The next CCR payment will be issued on January 15, 2025. Quarterly payments will follow in April, July, and November.

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2. How much can I receive through the carbon rebate?

In 2025, you could receive up to $1,120 annually, depending on your province, family size, and dependents.

3. Do I need to apply separately for the rebate?

No. The rebate is issued automatically if you file your taxes and meet eligibility criteria.

4. What if I moved provinces? Will it affect my payment?

Yes. Your province of residence as of the payment month determines your rebate amount. Update your address with CRA to avoid delays.

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5. Is the rebate taxable or reported on my return?

No. The Canada Carbon Rebate is non-taxable and does not need to be reported on your income tax return.

About the Author
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Caroline is an accomplished author and journalist with over 5 years of professional experience. She specializes in finance, automotive, and technology reporting, providing in-depth analysis and clear perspectives that cater to both industry professionals and a wider readership.

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