The Canada Carbon Rebate is set to arrive in August 2025, offering timely financial relief for households across eligible provinces. With energy costs and inflation still high, this quarterly CRA payment helps offset the impact of federal carbon pricing by returning money directly to Canadians.
Also known as the Climate Action Incentive Payment (CAIP), this rebate is non-taxable and automatically sent to qualifying residents. Due to delays in some provinces’ July payment cycle, a special August payout is scheduled for mid-month.
Rebate
The Canada Carbon Rebate is part of the federal climate plan, redistributing carbon pricing revenues to households in provinces that do not manage their own carbon tax. Normally, the CRA issues payments in January, April, July, and October. This time, certain provinces will receive their payment in August instead of July.
Eligibility
To receive the August 2025 rebate, applicants must:
- Be a Canadian resident for tax purposes
- Be at least 19 years old, or have a spouse/common-law partner, or be a parent
- Have filed a 2024 income tax return
- Reside in an eligible province
Eligible provinces include Alberta, Saskatchewan, Manitoba, Ontario, Nova Scotia, New Brunswick, Prince Edward Island, and Newfoundland and Labrador.
Provincial
Here’s the estimated August 2025 rebate amount for a family of four, along with the per-person quarterly rate:
| Province | Estimated August 2025 Rebate | Quarterly Payment (Per Person) |
|---|---|---|
| Alberta | $386 | $96.50 |
| Saskatchewan | $340 | $85.00 |
| Manitoba | $264 | $66.00 |
| Ontario | $280 | $70.00 |
| Nova Scotia | $328 | $82.00 |
| New Brunswick | $284 | $71.00 |
| Prince Edward Island | $240 | $60.00 |
| Newfoundland & Labrador | $292 | $73.00 |
These amounts vary depending on family size, province of residence, and whether the rural supplement applies for those living outside major cities.
Dates
The CRA will issue the August 2025 rebate in mid-August. Canadians can choose between direct deposit for faster payments or a mailed cheque.
To avoid delays, it’s important to keep address and banking details up to date in CRA MyAccount.
Importance
The Canada Carbon Rebate is designed to return more money to most households than they pay in carbon pricing. It is especially beneficial for low- and middle-income families.
Main benefits include:
- Offsetting higher costs of fuel and utilities
- Encouraging energy efficiency
- Providing economic support during climate transition
- Offering rural residents additional financial help
The August 2025 rebate is more than a quarterly payment — it is a key support measure that balances climate action with cost-of-living relief. By ensuring equitable returns from carbon pricing, the program helps Canadians manage expenses while moving toward a greener economy.
FAQs
When is the August 2025 rebate paid?
Mid-August 2025.
Which provinces are eligible?
AB, SK, MB, ON, NS, NB, PEI, NL.
How much does a family get in Alberta?
$386 for a family of four.
Do I need to apply for the rebate?
No, it is issued automatically if eligible.
Is the rebate taxable?
No, it is non-taxable.
