The Canadian government is offering a Climate Action Incentive Payment (CAIP) of up to $386 per person for eligible residents.
Designed to soften the blow of the federal carbon price, this quarterly, tax‑free rebate helps households manage rising energy and fuel costs. Let’s break down who qualifies, how much you can get, and when to expect it.
What Is the CAIP?
The Canada Climate Rebate (formerly CAIP) returns carbon pricing revenue to individuals in provinces that use the federal fuel charge system.
Eligible residents in Alberta, Ontario, Manitoba, and Saskatchewan are paid quarterly—January, April, July, and October—based on the previous year’s tax return.
It includes a basic amount, plus a rural supplement for those outside major census metro areas, to offset higher transportation costs in remote regions.
July 2025 Rebate: Payment Date & Delivery
- Payment Date: July 15, 2025
- Delivery Method: Direct deposit (labelled “Canada Carbon Rebate”) or mailed cheque
- Status Check: Use CRA My Account to confirm upcoming payment or update your bank info
How Much Can You Get? Provincial Breakdown
Your rebate depends on where you live, your marital/family status, and whether you reside in a rural area. Here’s what you can expect:
| Province | Individual | Spouse/Partner | Each Child (<19) | Rural Supplement (+10%) |
|---|---|---|---|---|
| Alberta | $386 | $193 | $96 | $38.60 |
| Saskatchewan | $340 | $170 | $85 | $34.00 |
| Ontario | $300 | $150 | $75 | $30.00 |
| Manitoba | $264 | $132 | $66 | $26.40 |
Total for a family of four in Alberta (rural) could reach $1,212 in a single quarterly payment.
Who Is Eligible?
To qualify for the July 2025 rebate:
- Be a resident of Alberta, Saskatchewan, Manitoba, or Ontario as of July 1, 2025
- Have filed your 2024 income tax return by April 2, 2025
- Be 19 or older, have a spouse/partner, or live with a dependent child
- Be a resident for Canadian income tax purposes
- If you live in a rural area, tick the rural box on your 2024 tax form for the supplement
No separate application is needed—eligibility is verified based on your tax return.
Why the Rebate Matters Now
With the federal carbon price rising to about $0.209 per litre in 2025, fuel and energy costs are pushing household budgets.
The rebate ensures most eligible families receive more in rebate payments than they pay in carbon charges, particularly those with lower-to-middle incomes. It’s both support and incentive—encouraging greener habits while reducing financial burdens.
How to Track and Maximize Your Payment
- File your 2024 tax return early to qualify.
- Set up direct deposit in your CRA My Account.
- Update family or address changes in your information.
- Check My Account around July for payment notification.
- Wait at least 10 business days after the date before contacting CRA if payment doesn’t arrive.
Don’t Miss Out—Up to $386 Could Be Yours
The July 2025 Climate Rebate delivers meaningful support to eligible Canadians in four provinces—up to $386 per person, more for rural and families. It’s automatic, tax-free, and designed to ease the cost of carbon pricing while reinforcing environmental goals.
Make sure your tax return is filed and your CRA information is current—this is one payment you don’t want to miss.
FAQs
Do I need to apply separately for the rebate?
No. Once you file your 2024 taxes, the rebate is calculated automatically based on your eligibility.
What if I live in a rural area?
You’ll receive a 10% rural top-up automatically if you indicate rural residence on your tax return.
Will the rebate be taxable?
No. The CAIP is completely tax-free and does not count as taxable income.