CRA Confirms December Carbon Rebate for Canadians
Canadians may receive a helpful financial boost this December. The Canada Revenue Agency (CRA) has confirmed a carbon rebate payment of up to $1,120, which will be sent by direct deposit to eligible individuals, families, and small businesses.
This payment is meant to return money collected from carbon pricing and help Canadians manage rising living and energy costs during the holiday season.
What Is the CRA Carbon Rebate?
The Canada Carbon Rebate is a tax-free payment that returns federal carbon pricing revenues back to Canadians. Its purpose is to ensure households are not unfairly impacted by higher fuel and energy costs.
Although regular quarterly carbon rebates ended earlier in 2025, this special payment ensures Canadians still receive funds collected from earlier carbon pricing periods.
Why Is the Payment Being Issued in December?
The December rebate reflects adjustments as the federal government moves away from consumer carbon pricing. The CRA is issuing final or corrected payments so eligible recipients receive the full amount they are owed.
December was chosen to help Canadians during a time when expenses are typically higher, such as heating bills, holiday spending, and year-end costs.
Who Is Eligible for the Carbon Rebate?
Eligibility depends on residency, province, and tax filing status. Individuals must be Canadian residents for tax purposes and live in a province where federal carbon pricing applied.
Small businesses may also qualify if they meet specific criteria and have filed the required tax returns.
Eligible Provinces
The rebate applies to residents of provinces that were under the federal fuel charge system, including:
- Alberta
- Ontario
- Manitoba
- Saskatchewan
- New Brunswick
- Nova Scotia
- Prince Edward Island
- Newfoundland and Labrador
Residents of provinces with their own carbon pricing systems may not qualify for this payment.
Tax Filing Requirement
To receive the rebate, you must have filed your most recent income tax return. The CRA uses tax records to confirm eligibility and calculate the payment amount.
Small businesses must also have filed their corporate tax returns to be considered.
How Much Will You Receive?
The maximum amount of $1,120 applies mainly to larger households in certain provinces. Actual payments vary based on province, household size, and family composition.
Individuals and smaller households may receive lower amounts. The CRA calculates payments automatically, so no action is required from recipients.
When Will the Payment Be Sent?
Direct deposit payments are expected to begin in mid-December. Canadians who are not enrolled in direct deposit may receive paper cheques later in the month.
Having up-to-date banking information helps avoid delays and ensures faster payment.
Do You Need to Apply?
No application is required. If you are eligible and have filed your tax return, the CRA will automatically send the payment.
This applies to both individuals and qualifying small businesses.
How to Make Sure You Don’t Miss the Payment
To avoid delays, log in to your CRA account and confirm your direct deposit details and mailing address. File any outstanding tax returns as soon as possible.
Watch for a deposit labeled “Canada Carbon Rebate” in December.
Why This Rebate Matters
The carbon rebate helps balance environmental policy with affordability. While carbon pricing encourages lower emissions, the rebate ensures most households receive more back than they pay.
For many Canadians, this December payment may help with winter heating costs, groceries, or other year-end expenses.
Final Thoughts
The CRA’s December carbon rebate could provide meaningful financial relief for millions of Canadians. With no application required, the most important step is keeping your tax and banking information current.
As the payment date approaches, stay alert for scams. The CRA will never ask for personal information by text or email regarding this rebate.
