Updated on January 25, 2024
As the cost of pollution increases, the Canadian government is giving back money to qualifying families through the Climate Action Incentive. We’ll guide you in figuring out if you’re eligible for the Canada CAI Payment & Deposit and, if you are, we’ll show you how to claim your payment.
What is Canada CAI Payment & Deposit?
Canadian provinces employing the federal carbon pollution pricing system will receive Climate Action Incentive payments, redirecting fuel charge proceeds to eligible residents. Initially distributed annually, as of the 2021 tax return and onwards, the Canadian government issues payments every three months (Quarterly). The CAIP, commonly known as the Carbon Tax Rebate, aims to alleviate the financial impact of federal pollution pricing in the province.
CAI Payments
Not everyone can claim the incentive amount; only eligible citizens from the following provinces will receive CAIP payments.
| For People | Ontario | Saskatchewan | New Brunswick | Manitoba | Alberta | Nova Scotia | Newfoundland and Labrador | Prince Edward Island |
| Individual | $488 | $680 | $92 | $528 | $772 | $124 | $164 | $120 |
| Spouse | $244 | $340 | $46 | $264 | $386 | $62 | $82 | $60 |
| Perchild Under 19 | $122 | $170 | $23 | $132 | $193 | $31 | $41 | $30 |
| First Child in a single-parent family | $244 | $340 | $46 | $264 | $386 | $62 | $82 | $60 |
Please note that residents in rural areas of the mentioned province will also receive a 10% rural supplement, not included in the table above. Additionally, residents of Prince Edward Island will receive an extra 10% in CAI payments.
When is the Canada CAI Payment made?
If you qualify for the rebate amount, it’s important to know that payments are scheduled for the 15th of April, July, October, and January. However, if the 15th falls on a public holiday, Sunday, or Saturday, the payment will be processed on the last business day before the 15th.
The CAIP amount will be included in your tax refund based on your chosen mode of receiving tax refunds. If you opt for direct deposit, the incentive amount will be deposited directly into your bank account, labeled as “Climate Action Incentive” or a similar designation.
In the case of a tax debt with the Canadian Revenue Agency, the amount will be applied to outstanding income tax balances.
Note: If you haven’t received the CAIP amount on the specified payment date, it’s advisable to wait for at least ten days before reaching out to the authorities to report the issue.
Canada CAI Payment Eligibility Conditions
Before explaining how to claim your CAI payment, it’s crucial to determine if you meet the eligibility criteria.
To qualify for the carbon tax rebate, you need to be a resident of the aforementioned Canadian province on the last day of the payment month and be at least 19 years old by the CAI payment month. However, if you haven’t reached this age yet, you can still receive the rebate if you meet any of the following conditions:
- You are currently or previously legally married.
- You are a parent, currently or previously, and live with your child.
Typically, CAIP payments require you to be 19 years old. If you turn 19 before January 2024, you should file your income tax return for 2022, and the Canadian Revenue Agency will automatically identify you. Your first CAI payment will be issued on your 19th birthday.
How to Claim CAI Payment & Deposit?
To receive the incentive amount every quarter, both you and your spouse (if applicable) need to file an income tax and benefit return. The payment will be issued to either you or your spouse, with the amount being the same regardless of the account. It’s important to note that to keep receiving the CAIP, you must consistently file your tax return every year.
You don’t have to complete an application form to receive the payments; the CRA will automatically deposit the payment into your accounts when processing your income tax returns.
Conditions When You Must Contact the CRA
If you qualify for the CAI payment, it’s important to reach out to the CRA if certain changes occur:
- If the number of children under your care changes.
- In the event of the recipient’s passing, you should be informed about the two scenarios: whether the deceased person was married or single, divorced, widowed, or separated.
- If there are changes in your marital status.
- If you are moving or relocating.