In August 2025, eligible households across eight Canadian provinces will receive the next installment of the Canada Carbon Rebate, previously known as the Climate Action Incentive Payment (CAIP).
This quarterly, tax-free payment is distributed by the Canada Revenue Agency (CRA) to offset the impact of carbon pricing on individuals and families.
With fuel and energy prices remaining high, this rebate acts as a crucial form of government aid, especially for low- and middle-income households.
Here’s everything you need to know about the August 2025 payment, including the CRA schedule, eligibility criteria, and provincial payout differences.
What Is the Canada Carbon Rebate?
The Canada Carbon Rebate is a federal compensation program that returns a portion of carbon tax revenues to individuals living in provinces that do not have their own carbon pricing systems.
The rebate is automatically issued every quarter and requires no application, as long as you’ve filed your 2024 tax return.
The August payment is the third quarterly installment of 2025, with CRA confirming that payments will begin around August 15, 2025, or the next business day in some provinces.
Provinces Eligible for the August 2025 Carbon Rebate
Residents in the following eight provinces are eligible for the rebate:
| Province | Federal Carbon Pricing Applies? |
|---|---|
| Alberta | Yes |
| Saskatchewan | Yes |
| Manitoba | Yes |
| Ontario | Yes |
| Nova Scotia | Yes |
| New Brunswick | Yes |
| Prince Edward Island | Yes |
| Newfoundland & Labrador | Yes |
Residents in other provinces or territories where provincial systems are in place are not eligible.
Canada Carbon Rebate – August 2025 Payout Schedule
The CRA has confirmed the August 2025 payout timeline as follows:
| Province | Expected Payment Date | Payment Method |
|---|---|---|
| AB, SK, MB, ON | August 15, 2025 | Direct deposit or cheque |
| NS, NB, PEI, NL | August 16, 2025 | Direct deposit or cheque |
The amount received depends on your family size, income, and location (urban vs. rural).
Rural residents receive a 20% top-up on their base rebate amount, automatically calculated based on postal code and census data.
Eligibility for the Canada Carbon Rebate
To qualify for the August 2025 payment, residents must:
- Live in one of the eight eligible provinces
- Have filed their 2024 personal income tax return
- Be 19 years of age or older, or have a spouse or dependent if under 19
- Be registered with the CRA (My Account recommended for tracking)
- Have updated banking details for direct deposit
Note: Even individuals with no income are eligible, as long as a tax return has been filed.
Why the Carbon Rebate Matters
The carbon tax in Canada currently stands at $95 per tonne (as of April 2025). This tax is added to fuel, natural gas, and other energy sources, which can significantly impact household costs.
The Canada Carbon Rebate is designed to return most of that money back to families.
According to government estimates, most households receive more in rebates than they pay in carbon taxes, with the rebate covering up to 80% or more of the average cost.
What to Do Now
To ensure your rebate arrives without delay:
- Verify that your 2024 tax return has been filed
- Update your CRA My Account with the correct direct deposit information
- Check your rural status for the 20% top-up
- Watch for a deposit or cheque from “Climate Action Incentive” around August 15–16
- Contact CRA if your payment is delayed beyond late August
You can track your payment status and see deposit details through the CRA My Account portal.
The Canada Carbon Rebate for August 2025 is on its way to households in eight federal backstop provinces, helping Canadians manage energy costs amid ongoing economic pressures.
With automated payments, rural top-ups, and increased rebate amounts tied to the rising carbon price, this benefit is a key part of Canada’s commitment to climate action and economic fairness.
Make sure your tax return and banking details are in order—and expect your quarterly rebate by mid-August.
FAQs
When will I receive my August 2025 carbon rebate?
Most recipients will be paid on August 15, 2025, with some provinces receiving payments on August 16.
Do I need to apply for the rebate?
No. The rebate is automatically issued to eligible residents who have filed their 2024 tax return.
How is the rural top-up calculated?
The 20% rural supplement is automatically applied based on your postal code and census classification—no action is needed.