Climate Action Incentive Payment Amounts for 2025-2026

The Climate Action Incentive Payment (CAIP) is a quarterly, tax-free payment from the federal government that returns carbon pricing revenue to residents of provinces where the federal fuel charge applies. For the 2025-2026 benefit year, the CRA has published updated amounts reflecting the continued carbon pricing schedule.

What Is the CAIP?

The federal carbon pricing system charges a levy on fossil fuels at the point of production or import. This levy is passed along through higher prices for gasoline, natural gas, and propane. The CAIP is designed to return the bulk of these revenues directly to residents, ensuring the carbon price does not disproportionately harm average and lower-income households.

The CAIP is:

• Tax-free
• Paid quarterly: April, July, October, January
• Based on your most recently filed tax return
• Automatic — no separate application required

Eligible Provinces for 2025-2026

CAIP is paid to residents of provinces that use the federal fuel charge rather than their own equivalent system. As of the 2025-2026 benefit year, the eligible provinces are:

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

British Columbia has its own provincial carbon tax and does not receive the federal CAIP.

Quebec operates a cap-and-trade system (through the Western Climate Initiative) and does not receive the federal CAIP.

2025-2026 CAIP Amounts by Province

The following are the annual CAIP amounts for the 2025-2026 benefit year. Payments are made in four equal quarterly instalments.

Province	Individual	Spouse/Partner	Per Child (under 19)
Alberta	$900	$450	$225
Saskatchewan	$800	$400	$200
Manitoba	$600	$300	$150
Ontario	$560	$280	$140
New Brunswick	$380	$190	$95
Nova Scotia	$412	$206	$103
Prince Edward Island	$480	$240	$120
Newfoundland and Labrador	$596	$298	$149

Quarterly Payment Breakdown

Since CAIP is paid quarterly, each instalment is one-quarter of the annual amount. For a single adult in Ontario:

$560 ÷ 4 = $140 per quarter

For an Ontario family of four (two adults, two children):

($560 + $280 + $140 + $140) ÷ 4 = $280 per quarter or $1,120 per year

Alberta families receive the most, reflecting higher per-family carbon pricing costs in that province.

Rural Supplement

Residents of small and rural communities receive a 20% supplement on top of their base CAIP amounts. This acknowledges that rural residents typically have higher fuel consumption (longer driving distances, less access to public transit, more reliance on home heating oil or propane).

Example — Rural Alberta family of four (2 adults, 2 children):

• Base annual amount: $900 + $450 + $225 + $225 = $1,800
• Rural supplement (20%): $360
• Total annual CAIP: $2,160 ($540 per quarter)

Who Qualifies for the Rural Supplement?

The CRA determines rural eligibility based on your postal code as reported on your most recently filed tax return, cross-referenced with Statistics Canada’s census metropolitan area (CMA) and census agglomeration (CA) data. If you live outside a CMA or CA, you generally qualify for the rural supplement.

You do not need to apply separately — the CRA applies the supplement automatically if your postal code qualifies.

Who Is Eligible?

To receive the CAIP, you must:

1. Be a Canadian resident for income tax purposes on the first day of the payment month
2. Live in an eligible province on the first day of the payment month
3. Be 19 or older, or have been married/common-law, or be a parent living with a child

Children are automatically included for families where the primary caregiver files a return. The Canada Child Benefit (CCB) determination typically identifies which parent claims the children for CAIP purposes.

Income Does Not Affect Eligibility

Unlike many benefits, the CAIP has no income threshold. A family earning $500,000 and a family earning $30,000 in the same province receive the same CAIP amount. The political design is intentional — a flat-per-person payment is transparent and simple, and ensures that households who drive less than average come out ahead even at higher incomes.

How to Receive the CAIP

Simply file your tax return. The CRA automatically determines your eligibility and calculates your payment. You do not need to check a box, fill out a separate form, or apply anywhere.

For the fastest payments, ensure your direct deposit information is current in CRA My Account. Paper cheques are mailed if no direct deposit is on file.

If you miss filing your return, you will not receive the CAIP for that benefit year. Filing late will generate retroactive payments for any missed quarters once the return is assessed.

CAIP and Benefit Stacking

Because the CAIP is non-taxable income, receiving it does not affect:

• Your GST/HST credit amount
• Canada Child Benefit (CCB)
• Old Age Security (OAS) or GIS clawback thresholds
• Your marginal tax bracket
• Any means-tested provincial benefits

This makes the CAIP a pure benefit — it doesn’t interact negatively with other credits.

The Future of the CAIP

Canada’s carbon pricing policy has been subject to ongoing political debate. The Conservative federal government elected in early 2025 announced plans to eliminate the consumer carbon levy (the fuel charge that funds the CAIP). If the fuel charge is removed, the CAIP would also end, as it is funded entirely by carbon pricing revenue.

As of the date of this article (March 2026), the 2025-2026 CAIP payments (April 2025 through January 2026) are still expected to be paid. Benefit recipients should monitor government announcements for any changes affecting future quarters.

Sources

• CRA — Climate Action Incentive Payment
• Government of Canada — Carbon pricing overview