CRA Carbon Tax Rebate July 2024 – Payout Date and Payment Amount!

The Canadian government offers financial assistance to eligible Canadian individuals and families to offset the federal fuel pricing. The Canadian CCR recipients must be expecting their July payment. With the carbon pricing rising from $65 to $80 per tonne, the carbon tax rebate can reduce the burden on Canadians. 

CRA Carbon Tax Rebate July 2024

The carbon tax rebate or climate action incentive is an effort by the government to reduce the burden on Canadian citizens due to the increasing fuel prices and carbon tax. The Canadian government has introduced a carbon tax to encourage citizens to make greener choices. 

In April 2024, the government increased the carbon tax to $80 per tonne from $65 per tonne, leading to high fuel pricing for Canadian residents. However, as the carbon tax goes up so does the carbon rebate to provide financial relief to all the Canadians impacted by the high pollution pricing. 

The Canada Revenue Agency (CRA) administers and oversees the Carbon tax rebate payments. Under the Canada Carbon tax rebate, all eligible Canadians receive the rebate four times a year on every 15th of April, July, October, and January. The CCR recipients are now expecting their July payout on 15 July 2024. 

If the 15th of the respective month falls on a weekend or public holiday, the rebate amount will be disbursed on the last business day before the designated date. 

Who qualifies for the 2024 CRA Carbon Tax Rebate? 

The Canadian who meets the following requirements of the Carbon tax rebate can receive the rebate amount:

  • You are a Canadian resident at the beginning of the month before the payment month. 
  • You live in a Canadian province eligible for the carbon tax rebate on the first day of the CCR payment month. The following provinces are applicable for the carbon tax rebate:
  • Alberta (AB)
  • New Brunswick (NB)
  • Nova Scotia (NS)
  • Manitoba (MB)
  • Newfoundland and Labrador (NL)
  • Prince Edward Island (PEI)
  • Ontario (ON)
  • Saskatchewan (SK)
  • You should have filed your income tax return for the previous year. 
  • You must have attained 19 years of age at the beginning of the payment month. Under 19 Canadians can receive the payment if  they fulfill at least one of the below criteria:
  • You were or are a parent of a child and the child is living with you. 
  • You were or are married or have or had a common-law partner.
  • Canadians who have children can include their children in the CCR benefits if the child meets the following eligibility:
  • The child is dependent on you and his/her age is under 19.
  • The child lives with you and you are responsible for his upbringing and primary care. 
  • The child registered for CCB (Canada Child Benefit), GST/HST credit, or the Carbon tax rebate.  

Important Note: People who share the custody of the child or children will receive carbon tax rebate payments equal to 50% of the rebate amount, respectively.  

CRA Carbon Tax 2024 Rebate Amount 

The Carbon tax rebate amount depends on the province you live in, the situation of your family, and adjusted income. Under the Canada Carbon tax rebate, a family of four can expect a payment of up to $1,800. 

Here’s the Quarterly distribution of Carbon tax rebate payments for 2024-25 according to the CRA:

Province  First Adult  Second Adult  Each Child  Family of Four
AB $225 $112.5 $56.25 $450
ON $140 $70 $35 $280
MB $150 $75 $37.50 $300
SK $188 $94 $47 $376
NB $95 $47.50 $23.75 $190
NS  $103 $51.50 $25.75 $206
NL  $149 $74.50 $37.25 $298
PEI $110 $55 $27.50 $220

The CCR has 10% of the base amount for people who reside in small and rural communities. People who reside in PEI province receive the base amount of CCR including the rural supplement. 

How to receive the CRA Carbon Tax 2024 Rebate

The process of receiving the Carbon tax rebates depends on whether you are a newcomer or a resident of Canada. 

  • Claim procedure for residents of Canada: Canadians who reside in the CCR applicable province do not need to apply for the CCR, they just need to file their tax and benefit return on time. 

The CRA will automatically send their applicable rebate amount through their preferred method. The people who wish to receive the rural supplement under the CCR must tick the box on page 2 of their income benefit and tax returns. 

The Canadians residing in the PEI do not have to claim their rural supplement on their tax return as their base amount of CCR has the rural supplement in it. 

  • Newcomers Claiming process for carbon tax rebate: The newcomer who meets the eligibility requirements of the carbon tax rebate must fill out Form RC66 to apply for child benefits, and Form RC66SCH to capture citizenship and residency information with income status. 

However, if you do not meet the eligibility for the carbon tax rebate, you can submit Form RC151 for GST/HST credit, Canada child benefit,  and CCR applications. 

Impact of Carbon tax rebate on Canada households

According to reports, 80% of Canadians receive the rebates more than they pay the taxes. The Canadians benefit from the Carbon tax rebate in the following way:

  • According to the Ministry of Finance study, the residents of Canada get back the fuel amount they pay for fuel through carbon tax rebates. The lower-income households get the most benefit from the CCR. 
  • The people pay taxes on the purchase of fuel, but they get the rebates regardless of whether they pay for fuel or not, which impacts many households. So, if you spend less on your fuel pricing, you will earn more money through the CCR. 
  •  According to the reports, the average net benefit that any Canadian household gets from CCR is around $723. 

From April 2024, the residents can expect an additional payment in July, October, and January 2025. The government is proposing a double top-up for the rural residents from 10 percent to 20 percent as the government recognizes their higher energy needs. 

However, the increase in the additional rural payments is still pending for the Royal Assent so, the people can expect the payment once the Royal Assent receives it. 

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