Canada’s first carbon tax rebate payment of the year comes tomorrow. Here’s what Ontarians need to know

A Climate Action Incentive Payment (CAIP) cheque can be seen in this file photo. The federal government announced in mid February that the incentive was being renamed the "Canada Carbon Rebate." (David Prisciak/CTV News)

The first of four Canada Carbon Rebate (CCR) payments this year is set to make its way to Canadians' wallets on Wednesday.

Canadians living in Ontario, Alberta, Saskatchewan, Manitoba and all four Atlantic provinces will receive the payment, if they filed their 2023 taxes. These are sent out every three months to eligible Canadians, with the following payments slated in April, July and October.

This credit, formerly called the Climate Action Incentive Payment, is meant to help Canadians offset the costs from the federal government’s pollution pricing, the Canada Revenue Agency (CRA) says. A parliamentary budget officer report, published in October 2024, revealed that when considering the fiscal impacts, the average household will receive more from the rebate than what they pay in the fuel levy and related GST.

READ MORE: Poilievre, Guilbeault claim victory after federal budget watchdog’s updated carbon tax report

Here’s what Ontarians need to know about this year’s payments.

How much will I get living in Ontario?

Eligible Canadians will receive anywhere between $95 and $225 with Ontarians receiving a base payment of $140, up from $122 from last year’s rebates.

Ontarian households will receive an additional $70 for a second adult and $35 for every child under the age of 19. The federal government says the average family of four in the province can expect a quarterly payment of $280.

Small-town and rural residents will receive an additional 20 per cent beyond the base rebate amount, the government says, due to their increased energy needs and lack of access to cleaner transportation.

The federal government notes these payments are adjusted every year to match the price on pollution.

How to get your payments

Canadian residents don’t need to apply for these rebates, however, they do need to file their income taxes and benefit returns so the government will send them the money they’re entitled to.

Only one person in a marriage or common-law partnership will receive the payment for the entire family, which is typically paid out to the person who files their return first.

Newcomers to Canada who meet certain eligibility requirements can also receive the CCR, so long as the required forms are filled out and mailed to a tax centre. Those who do not meet the requirements can also fill forms to apply for the rebate.

To continue receiving the payment, Canadians have to file an income tax and benefit return every year – even if there is no income to report.

Anyone who doesn’t receive their rebate on Wednesday is asked to wait 10 business days before contacting the CRA.

The future of CCR payments

Conservative Leader Pierre Poilievre promises to “axe the tax,” should he be elected in the next federal election (which must be held by October) – posing the question of what will happen with CCR payments if he becomes Canada’s 24th prime minister.

The Tory leader has blamed the Liberal government’s carbon levy for pushing up the cost of food and fuel, while dismissing or ignoring its purported benefits, including these rebates.

Based on ballot tracking by Nanos Research last month, Poilievre’s Conservatives were at a comfortable majority with 42 per cent across Canada showing favour toward the Tories, while the Liberals and the NDP are within the margin of error of each other at 23 per cent and 21 per cent, respectively.

In Ontario, Nanos' polls revealed traditionally red strongholds like the GTA are increasingly turning blue or are too close to call.

With files from CTVNews.ca’s Phil Hahn and The Canadian Press