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 your 2019 return. 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 2019 tax return is $444 for a single person. If you have a spouse or eligible dependent you will receive an additional $222 and $111 for each child thereafter. Therefore, a family of 4 will receive $888.

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.