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How to Get More on Your Income Tax Return with the New Climate Action Incentive

April 8, 2019
2 mins
A man and woman look worried as they scan their statements

The federal government’s Carbon Tax officially came into effect on April 1, increasing the costs of gasoline and fossil fuel consumption.

The tax was introduced in an attempt to encourage Canadians to use more environmentally-friendly and energy-efficient processes, though subsequently, a tax credit was also implemented as a way to offset these increased fuel costs.

The Climate Action Incentive (CAI) only applies to residents of Manitoba, New Brunswick, Ontario and Saskatchewan, since other provinces have already developed a carbon pricing program.

The amount received from the rebate is based on the province in which the claimant lives, as well as the size of his or her family.

The rebate can also only be claimed by one person per household on 2018 income tax returns, meaning you can receive savings even though the Carbon Tax was only introduced this year.

In Ontario, for example, a single person will reportedly receive $154, and a family of four could be eligible for $307. In other provinces,

  • Saskatchewan: $305
  • Manitoba: $170
  • New Brunswick: $128

A single person can receive: A family of four can receive:

  • Saskatchewan: $609
  • Manitoba: $339
  • New Brunswick: $256

Even if your income falls below the taxable amount, those who file a nil tax return will still receive some CAI.

Also, those living in rural and small communities are eligible for an additional 10 per cent on top of the base CAI refund, since these Canadians have less access to alternative energy and transportation options.

If you’re a resident of one of the CAI-eligible provinces, ensure you file your taxes before the deadline on April 30.

Thinking of filing yourself? Save 20 percent on TurboTax Standard and do your own personal income tax return with ease, no matter whether you're filing as a student, individual or family. 


The RATESDOTCA editorial team are experienced writers focused on sharing stories and bringing you the latest news in insurance and personal finance. Our goal is to provide Canadians with the information and resources they need to make better insurance and financial decisions.

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