Canada Carbon Rebate

The Canada Carbon Rebate puts money back in your pocket while helping to reduce pollution – ensuring a cleaner future for all Canadians.

In provinces where the federal fuel charge applies, all of the proceeds are returned to the Canadians in the province or territory where it is collected. The Government of Canada does not keep any direct money from pollution pricing.

Most proceeds collected are returned directly to individuals and families through Canada Carbon Rebate payments – with the majority of households getting back more in rebates than they pay. The remaining proceeds are returned directly to farmers, small- and medium-sized businesses and Indigenous governments.

Giving money back to Canadians

Good for the environment and good for the economy

Carbon pollution pricing

Pricing carbon pollution is one of the most effective ways to reduce the greenhouse gas emissions that cause climate change – by creating a financial incentive for people and businesses to pollute less.

Carbon pricing is about recognizing the cost of pollution and accounting for those costs in our daily decisions by choosing less carbon-intensive options. Discover how it works where you live

Small and Medium-sized Businesses

The Canada Carbon Rebate for Small Businesses is a refundable tax credit that returns part of the revenue collected from carbon pricing to eligible small and medium businesses.

Farmers

The farmers tax credit helps offset carbon pricing costs that farmers incur by refunding fuel charges, ensuring farming operations stay affordable and competitive.

Indigenous governments

Canada recognizes the disproportionate impacts of climate change on Indigenous communities. The Fuel Charge Proceeds Fund for Indigenous Governments has been established to return proceeds to federally recognized Indigenous governments in a way that supports their self-determined priorities, including climate action.

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