Canada’s Carbon Rebate: A 2024 Guide
As of April 1, 2024, the federal carbon tax in Canada increased from $45 per month to $80 per month. This tax affects the price of natural gas in Ontario. To help mitigate these increased costs, the Canadian government provides a Canada Carbon Rebate (CCR), a tax-free benefit designed to offset the financial impact of this carbon pricing for eligible individuals and families.
In Ontario, the quarterly rebate amounts for an average household are $280 or $70 in rebates per month. Additionally, a 20% rural supplement is available for residents outside major city centers, acknowledging their greater dependency on fossil fuels due to limited greener options.
Eligibility for the CCR requires Ontario residents to be 19 years or older, or under 19 with a dependent child, and living in the province. The rebates are distributed quarterly on April 15, June 15, October 15, and January 15, with no need to apply—residents simply need to file their annual tax returns to receive the rebate.
Overall, the CCR aims to alleviate the higher costs incurred from the carbon tax while encouraging Ontarians to reduce fossil fuel consumption, promoting more sustainable and less polluting alternatives.
The impact of this increasing carbon charge is significant for natural gas users in Ontario. For the typical household, the federal carbon charge is expected to add about $336-$366 to the annual natural gas bill between April 2024 and March 2025. This cost will vary based on consumption, calculated by multiplying the federal carbon charge rate by the household’s natural gas usage.
To help offset these costs, the federal government provides the Canada Carbon Rebate (CCR), paid quarterly. For an average family of four in Ontario, the total CCR payments from April 2024 to March 2025 would be approximately $1,120.