2024 Carbon Tax Rebate: New Cheque Distribution Dates and Payment Schedule – What to Expect?

Updated on February 22, 2024

Stay tuned for comprehensive coverage on the Carbon Tax Rebate 2024, including detailed information on cheque distribution dates, payment schedules, and when to expect them. Keep scrolling to find out how much rebate you’re entitled to if you’ve paid the Carbon tax in Canada.

Carbon Tax Rebate 2024

The Carbon Tax, also known as the Fuel Charge in Canada, is a regulatory fee or tax applied to the carbon content of fuels at various levels of government, including provincial, territorial, and federal. As of 2023, the minimum tax stands at CA$65 per tonne of CO2 equivalent, with plans to increase it to CA$170 by 2030. In light of this, the Canadian Revenue Agency is set to introduce the Carbon Tax Rebate 2024 to alleviate the financial burden on citizens in New Brunswick, Ontario, Alberta, Saskatchewan, and Manitoba.

Residents of the four provinces mentioned are eligible to receive the Carbon Tax rebate, distributed in four equal instalments. This tax-free rebate is provided to qualified taxpayers to help offset the expenses associated with federal pollution pricing. The rebate consists of a basic amount and an additional sum allocated to residents of small and rural communities.

Carbon Tax Rebate Cheque Dates 2024

The Canadian government has altered the method of distributing the carbon tax rebate, now officially referred to as the Climate Action Incentive Payment. Previously, eligible taxpayers claimed the rebate annually on their personal income tax returns. However, it has been revamped to quarterly tax-free payments, which were initiated from July 2022.

Residents of Newfoundland and Labrador, Prince Edward Island, and Nova Scotia have the opportunity to claim their federal fuel charge rebate. This rebate is distributed in three equal instalments in the first year and four quarterly payments in subsequent years, starting from July 1, 2023.

Carbon Tax Rebate Payments 2024: How Much to Expect?

The rebate amount will be determined based on the family’s circumstances and the region of residence. However, the Carbon Tax Rebate payment will be universal, meaning it won’t be subject to benefit deductions based on adjusted family income. Below is the table illustrating the calculation of the CAIF for the base year 2022.

Please note: The October payment for residents of New Brunswick will encompass a double payment, covering both July to September 2023 and October to December 2023.

Residents of small and rural areas will need to respond to the 2022 rural supplement question on their 2023 income tax and benefit return. Subsequently, a retroactive payment will be issued for the 2022 base year.

The 10% rural supplement, not listed above for Nova Scotia, Newfoundland, and Labrador, will also be provided to rural residents in other provinces.

Carbon Tax Rebate Payment Date – When is it Coming?

Eligible citizens of the mentioned provinces will receive their Carbon Tax Rebate 2024 in April, July, October, and January, with payments scheduled for the 15th of each month. However, it’s important to note that if the 15th falls on a Saturday, Sunday, or a federal holiday, the payment will be issued on the last business day before the scheduled date.

If you’re entitled to receive the rebate, please note that this year, October 15th falls on a Sunday. As a result, you can expect to receive your CAIP on the following Monday. If you’ve opted for direct deposit, your rebate will be deposited directly into your account. However, if you have a tax debt with the Canada Revenue Agency, the rebate amount may be adjusted to cover any outstanding income tax balances.

All eligible citizens are advised to wait for at least ten days after the CAIP disbursement date if they have not received their payment. If you encounter any issues, you can contact the authorities by calling 1-888-863-8662 for benefit debt inquiries or 1-888-863-8657 for tax return debt inquiries.

How Do I Know If I Am Eligible for Carbon Tax Rebate?

Determining eligibility for the CAIF incentive amount is straightforward. If you are a resident of Canada for income tax purposes at the beginning of the month in which the CRA issues the payment, you are entitled to receive the rebate. Additionally, you must have reached the age of 19 in the months preceding the four instalment payments. However, if you are under 19, you must meet one of the conditions listed below.

You must have been married or previously married.
You are currently or were previously a parent and live(d) with your child.

For additional information on the Carbon Tax Rebate, we encourage you to explore our other articles as well. They contain supplementary details that may further enhance your understanding of the topic.