The Canada Revenue Agency (CRA) has confirmed that eligible Canadians could receive up to $1,120 from the Canada Carbon Rebate in August 2025. This payment, previously known as the Climate Action Incentive Payment, is designed to return proceeds from the federal carbon pollution pricing system directly to households.
The amount varies depending on the province and family size. For a family of four in Ontario, the annual maximum is $1,120, which works out to $280 per quarterly payment.
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Why the Rebate Is Important
The rebate exists to help offset the rising cost of living caused by the federal fuel charge. While Canadians pay more at the pump and for home heating, this rebate ensures money is returned directly to households. For many families, it represents a meaningful cost-of-living relief measure.
Eligibility for the $1,120 Canada Carbon Rebate
To qualify for the rebate in August 2025, individuals must:
- Be a Canadian resident for income tax purposes.
- Live in a province where the federal carbon pricing system applies.
- Be at least 19 years of age, or have (or had) a spouse or common-law partner, or be (or have been) a parent living with your child.
- File an annual income tax return, as the CRA uses tax filings to determine eligibility.
If you are married or living common-law, only one spouse or partner will receive the full rebate for the household.
How Much Will You Receive?
The exact amount depends on where you live and the size of your family. For Ontario, the payment breakdown for the 2024–25 benefit year is as follows:
- Single adult: $280 annually
- Couple (two adults): $560 annually
- Family of four: $1,120 annually
Other provinces have different maximum amounts, but Ontario’s $1,120 for a family of four remains one of the most widely referenced figures.
Is August 2025 the Last Payment?
Yes. The April 2025 distribution was the final scheduled Canada Carbon Rebate payment. The program officially ended in March 2025, when the federal government discontinued both the fuel charge and the household rebate system.
However, some Canadians may still see a payment in August 2025 if their eligibility was determined late, or if their tax filings were only recently processed by the CRA. This makes the August payout one of the last opportunities to receive the rebate.
Quick Snapshot of the Canada Carbon Rebate
| Category | Details |
|---|---|
| Maximum Annual Amount | $1,120 for a family of four in Ontario |
| Payment Frequency | Quarterly (ended April 2025) |
| Eligibility | Based on residency, age, and tax return filing |
| Final Official Payment | April 2025 |
| Possible August Payment | For late or adjusted claims processed by CRA |
Final Thoughts
The CRA confirms $1,120 Canada Carbon Rebate coming in August 2025 as part of the final round of payments before the program’s closure. While the regular quarterly system has ended, many Canadians could still see their last rebate processed this summer.
To avoid missing out, ensure your 2024 tax return is filed and up to date, since that is the only way the CRA can issue your payment.