Federal Carbon Tax Rebate for Albertans

The federal carbon tax was imposed in Alberta effective January 1, 2020. Consequently, the Climate Action Incentive will be available to Alberta taxpayers starting on 2019 tax returns. Unlike the former provincial carbon tax rebate which was delivered in quarterly payments, the federal rebate will be calculated and credited to you directly on return for tax year 2019 and later. This means that if you owe nothing or are in a refund position you will receive a larger refund, and if you have a balance owing that balance will be reduced. You must file a return to receive the rebate.

The rebate for Alberta taxpayers on a 2020 tax return is $490 for a single person. If you have a spouse or eligible dependent you will receive an additional $245 and $123 for each child thereafter. Therefore, a family of 4 will receive $981. If you reside outside a Census Metropolitan Area your CAI rebate will be 10% higher.

Also worthy of mention is that the federal Climate Action Incentive is not income tested, which means it is not decreased or eliminated if you have a higher income.