Climate action incentive payment (CAIP)/ Carbon Tax Rebate

Important: There are significant changes to the Climate action incentive payment (CAIP) for tax year 2021 and onwards.

The Climate action incentive payment (CAIP) is a tax-free benefit which consists of a supplement for residents of small and rural communities and a basic amount for residents of:

  • Ontario

  • Manitoba

  • Alberta

  • Saskatchewan

The CAIP can’t be claimed as a refundable tax credit for tax year 2021 and onwards. Instead, you’ll receive tax-free payments in April, July, October, and January. You’ll need to file your 2022 return to be eligible for these payments, even if you have no income to report.

Your CAIP rebate amount will depend on:

  • the province you live in
  • your marital status and
  • the number of children in your family

Note: If you’re a resident of Yukon, you can claim the Yukon Government Carbon Price Rebate.

If you live in an area that is outside a census metropolitan area (CMA), you will qualify for the CAIP supplement for residents of small and rural communities – an additional 10% of the payment amount you’re entitled to. For more information, refer to CAIP supplement for residents of small and rural communities.