In January 2025, eligible Canadians will receive the Canada Carbon Rebate (CCR), a tax-free payment designed to offset the costs associated with federal pollution pricing.
This initiative aims to make carbon pricing more affordable for households across the country.
Understanding the Canada Carbon Rebate
The CCR, formerly known as the Climate Action Incentive Payment, provides quarterly payments to residents in provinces where the federal fuel charge applies.
These provinces include Alberta, Saskatchewan, Manitoba, Ontario, New Brunswick, Nova Scotia, Prince Edward Island, and Newfoundland and Labrador. The rebate amounts vary based on family size and province of residence.
Payment Amounts for January 2025
The CCR amounts for the 2024-2025 fiscal year are as follows:
| Province | First Adult | Second Adult/First Child in Single-Parent Family | Each Child Under 19 | Total for Family of Four | Total with Rural Supplement (20%) |
|---|---|---|---|---|---|
| Alberta (AB) | $225 | $112.50 | $56.25 | $450 | $540 |
| Manitoba (MB) | $150 | $75 | $37.50 | $300 | $360 |
| Ontario (ON) | $140 | $70 | $35 | $280 | $336 |
| Saskatchewan (SK) | $188 | $94 | $47 | $376 | $451.20 |
| New Brunswick (NB) | $95 | $47.50 | $23.75 | $190 | $228 |
| Nova Scotia (NS) | $103 | $51.50 | $25.75 | $206 | $247.20 |
| Prince Edward Island (PEI) | $110 | $55 | $27.50 | $220 | Included in Base Amount |
| Newfoundland and Labrador (NL) | $149 | $74.50 | $37.25 | $298 | $357.60 |
Eligibility Criteria
To qualify for the CCR in January 2025, you must meet the following conditions at the beginning of the payment month:
- Residency: Be a resident of Canada in the month before the payment and reside in one of the applicable provinces.
- Age: Be at least 19 years old. Exceptions include individuals under 19 who have a spouse or common-law partner or are parents living with their child.
- Children: For each eligible child under 19 residing with you, an additional amount is included in the rebate.
Application Process
The Canada Revenue Agency (CRA) automatically determines your eligibility for the CCR based on your annual tax return. Ensure you file your 2023 income tax and benefit return to receive the January 2025 payment.
If you’re eligible, the payment will be issued in the quarterly payment after your 19th birthday or upon meeting other eligibility criteria.
Rural Supplement Details
Starting in 2024-25, the rural supplement increased from 10% to 20% of the base amount. This adjustment acknowledges the higher energy needs and limited access to cleaner transportation options for rural residents. To receive this supplement, you must reside outside a census metropolitan area and indicate this on your tax return.
The Canada Carbon Rebate in January 2025 provides financial relief to Canadians, helping to offset the costs associated with federal pollution pricing.
By understanding the payment amounts, eligibility criteria, and application process, you can ensure you receive the benefits you’re entitled to.
FAQs
1. What is the purpose of the Canada Carbon Rebate?
The CCR aims to help individuals and families offset the cost of federal pollution pricing, making carbon pricing more affordable and encouraging environmentally friendly practices.
2. How often are CCR payments issued?
Payments are made quarterly, typically on the 15th of April, July, October, and January.
3. Do I need to apply separately for the CCR?
No separate application is necessary. The CRA determines eligibility based on your annual tax return.
4. How is the rural supplement applied?
Eligible rural residents receive an additional 20% of the base CCR amount. In Prince Edward Island, this supplement is already included in the base amount for all residents.
5. What should I do if I don’t receive my CCR payment?
If you haven’t received your payment by the expected date, check your eligibility and ensure your tax returns are filed. If issues persist, contact the CRA for assistance.
