Climate Action Incentive Payment Canada 2025

The CAIP is a quarterly tax-free payment returning carbon pricing revenue to households in provinces without their own carbon plan.

Which Provinces Receive the CAIP?

The Climate Action Incentive Payment applies only in provinces that use the federal carbon pricing backstop — meaning provinces that do not have their own equivalent carbon pricing system recognized by the federal government. As of 2024–25, the CAIP applies in:

• Alberta
• Saskatchewan
• Manitoba
• Ontario
• Nova Scotia
• New Brunswick
• Prince Edward Island
• Newfoundland and Labrador

Residents of British Columbia, Quebec, and the three territories do not receive the federal CAIP — they have their own provincial/territorial carbon pricing systems.

2024–25 CAIP Amounts by Province

Province	Individual	Spouse/Partner	Per Child	First Child (single parent)
Alberta	$225	$112.50	$56.25	$112.50
Saskatchewan	$188	$94	$47	$94
Manitoba	$150	$75	$37.50	$75
Ontario	$140	$70	$35	$70
Nova Scotia	$124	$62	$31	$62
New Brunswick	$92	$46	$23	$46
PEI	$110	$55	$27.50	$55
Newfoundland & Labrador	$149	$74.50	$37.25	$74.50

These are per-quarter amounts. A family of four in Ontario receives $140 + $70 + $35 + $35 = $280 per quarter, or $1,120 per year.

Rural Supplement

Residents of small and rural communities outside census metropolitan areas receive a 20% rural supplement on top of the standard CAIP amounts. To receive this supplement, you must indicate on your tax return that you live outside a census metropolitan area.

CAIP Payment Dates 2025

Quarter	Payment Date
Q1 2025	January 15, 2025
Q2 2025	April 15, 2025
Q3 2025	July 15, 2025
Q4 2025	October 15, 2025

How to Receive the CAIP

You do not need to apply separately for the CAIP. The CRA determines your eligibility and amount automatically when you file your income tax return. To receive payments:

• File your tax return each year, even if you had no income
• Be a resident of an eligible province on the first day of the payment month
• Be at least 19 years old (or have a spouse/child)
• Set up CRA direct deposit for the fastest payment

Is the CAIP Taxable?

No. The Climate Action Incentive Payment is completely tax-free. You do not report it as income on your return, and it does not affect any other income-tested benefits you receive.

CAIP and the Carbon Tax Debate

The CAIP is the mechanism by which the federal government returns carbon tax revenue directly to households. The government argues that most households receive more in CAIP than they pay in carbon pricing — especially lower- and middle-income families who consume less carbon-intensive goods and services. Higher-income households tend to pay more in carbon pricing than they receive back.