Get Approved for up to $35,000 in 3 minutes
Apply Now
Blog Categories
Loan Calculator

How to Make the Most of Your Carbon Tax Rebate in 2024

Written by Jessica Steer
Fighting climate change isn’t easy, nor is it cheap. Carbon taxes are an effective tool in the war against climate change but they do increase the cost of living. To offset this, the federal government is offering rebates to many Canadians, depending on which province you live in. If you’re eligible for carbon tax rebates, getting them might be easier than you think.
Table of Contents

    We all know it’s crucial, for ourselves and future generations, that we act now to help protect the environment. There are lots of tools we can use in the fight against climate change, and it turns out your wallet is one of the most effective.

    That’s the core concept behind carbon taxes. Basically, it’s a system for putting a price on pollution, which encourages people and businesses to find ways to reduce emissions that harm the environment.

    In the summer of 2018 Canada’s federal government installed a carbon tax, which implemented a carbon pricing system in any provinces that didn’t already have a suitable system in place. This led to higher prices for fossil fuel energy sources like the gasoline you pump into your car or the natural gas you use to heat your home. (For a detailed explanation of the carbon tax and how it works, check out the Canada Drives blog post Carbon Taxes and Rebates in Canada Explained.)

    To offset these higher costs, the federal government provides carbon tax rebates which, for some people, will surpass the higher fuel prices so they’ll end up saving money in the end.

    How does the carbon tax rebate work?

    The simple answer is: it depends on which province you live in. Some of the provinces, like B.C. and Quebec, created their own carbon pricing systems before the federal government stepped in. The provinces of Alberta, Saskatchewan, Manitoba, and Ontario are required to use the federal government’s carbon tax system, although some of them are currently contesting this in court. In Febuary 2020, for example, Alberta's Court of Appeal declared the federal carbon tax unconstitutional and "illegal" because it intrudes on provincial jurisdiction.

    Here’s a quick breakdown of how the carbon tax rebate works in each province:

    Alberta$1,544 for a family of four

    $772 for a single adult

    Alberta carbon levy and rebates
    British ColumbiaUp to $447 for an individual, $223.50 for a spouse, or common-law partner, $111.50 for a child

    Rebate payment included in quarterly GST/HST credit

    BC climate action tax credit
    Manitoba$1,056 for a family of four

    $528 for a single adult

    Rebate payment included in federal tax return

    Manitoba and pollution pricing
    Newfoundland and Labrador$1,312 for a family of four

    $656 for a single adult

    Newfoundland and Labrador carbon pricing plan
    New BrunswickNo federal rebateNew Brunswick Climate Change Action Plan
    Northwest Territories$308 per adult and $308 per childImplementing the NWT Carbon Tax 
    Nova Scotia$992 for a family of four

    $496 for a single adult

    Nova Scotia and pollution pricing
    NunavutNo federal rebateNunavut and pollution pricing
    Ontario$976 for a family of four

    $488 for a single adult

    Rebate payment included in federal tax return

    Ontario and pollution pricing
    Prince Edward Island$960 for a family of four

    $480 for a single adult

    Discounts on some public programs

    P.E.I. saving you money while helping the environment
    QuebecNo federal rebate

    Uses cap-and-trade system

    Climate Change Action Plan
    Saskatchewan$1360 for a family of four

    $680 for a single adult

    Rebate payment included in federal tax return

    A Made-in-Saskatchewan Climate Change Strategy
    YukonNo federal rebateYukon and pollution pricing

    When do I get my carbon tax rebate?

    For most of the provinces that provide carbon tax rebates, getting the rebate is pretty simple. All you have to do is file your taxes and the rebate will be included in your tax return — aside from B.C., where the rebate accompanies the quarterly GST/HST credit.

    If you need more details, check out the link for your province in the table above.

    Using the carbon tax rebate to save

    According to the federal government’s calculations, most Canadians who qualify for a carbon tax rebate will actually end up receiving more money than they pay through carbon taxes. This provides a good opportunity to increase your savings (or start saving if you haven’t already).

    Save money without lifting a finger

    One of the easiest ways to sock away some funds for the future is to set up a separate savings bank account. You can transfer your carbon tax rebate into this new account to get it started, or to give it a boost. Then get your bank to set up an automatic transfer system to divert a small chunk of money into the savings account with every paycheque. Eventually, you won’t even notice the diverted funds and the savings will grow over time.

    Compounding interest: The magical way to increase your savings

    If you’re not familiar with the concept of compounding interest, it basically means earning interest on top of interest. You can set up an automatic savings system like we described above, and if you choose an investment account to put your savings into the interest can compound and your savings will grow significantly over the next few years.

    How significantly, you might ask? Plug some sample numbers into this compound interest calculator and you’ll see for yourself how magical a savings tool it can be.

    There are a variety of investment accounts you can choose from, including GICs (guaranteed investment certificates), mutual funds, and ETFs (exchange-traded funds). Talk with your bank to figure out which type of account works best for your financial goals and preferred risk level.

    Whether you’re looking to get a jump-start on your savings plan or you want to clear out some old debt so you can start saving from a clean slate, Spring Financial can help you get on solid financial footing. In around five minutes you can apply for a personal installment loan of up to $35,000 with great interest rates and no hidden costs. And if you’re approved the money can be in your account in less than 48 hours!

    Spring Financial serves Canadians facing all types of credit situations with practical advice and credit-building solutions. We also offer quick-and-easy secured and unsecured installment loans to help you take those first steps to a better financial future. Apply today to see how we can help!

    Online Loans from 9.99%*

    Skip the branch visits, apply online in minutes and get the financing you want today.

    Get a Loan Quote

    Subscribe to receive special offers and financial tips

    Subscribe To Our

    Receive Special Offers, and Learn Tips and Tricks to Improve your Finances.