To get a Canadian carbon discount, you must have filed your income tax return for the previous year even if you have no income to report. The first payment for 2025 is based on the 2023 income tax return. The second, third and fourth payments will be based on the 2024 income tax returns.
The Canadian Carbon Discount is a tax-free payment designed to help Canadian families offset the federal pollution pricing costs of gas pumps. According to the Canadian government, eight out of 10 households will return to exceed the carbon pollution pricing system. The amount you receive depends on where you live and the size of your family – more details are provided below.
When will the Canadian carbon discount be paid off?
Canadian carbon discounts are allocated four times a year:
- January 15
- April 15
- July 15
- October 15
If the 15th happens to fall on a weekend or statutory holiday, payment will be made on the last working day before the 15th.
Why are there carbon discounts?
As part of the Canadian carbon pricing system, carbon discounts were paid from the collected money. In 2019, the federal government priced carbon pollution with the goal of reducing greenhouse gas (GHG) emissions. At that time, the lowest price in the country was US$20 per ton of carbon dioxide (CO2E). It rose $50 in 2022, $65 in 2023 and $80 in 2024. In April 2025, it is $95. The minimum price will continue to rise by $15 each year until it reaches $170 per ton in 2030.
Carbon prices are collected through fuel expenses and industry output-based pricing systems. Drivers in Alberta, Saskatchewan, Manitoba, Ontario, Yukon and Nunavut have paid $0.1431 per liter of gasoline since April 1, 2023. Since July 1, 2023, the charge has also filed for drivers in New Brunswick, Nova Scotia, Prince Edward Island, Newfoundland and Labrador. (The rates vary for other fuel types.) In April 2024, the fuel charge rate increased to $0.1761, and in 2025, it will be $0.2091. See prices from 2026 to 2030. MoneysenseHack: You can’t avoid fuel expenses and other fuel consumption taxes, but you may be able to find cheap natural gas or recover cash. (Read more about why gasoline is so expensive.)
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Provincial and territorial governments can use federal carbon pollution pricing systems, or develop their own carbon pricing models or caps and trading systems as long as it meets or exceeds federal standards.
The CCR and tax credits are designed to offset fuel costs for individuals and households, while also encouraging them to reduce greenhouse gas emissions. By 2021, climate action incentives are refundable tax credits for personal income tax returns.
