Climate Action Incentive Payment (CAIP)

Which Provinces Receive CAIP?

CAIP is paid to residents of provinces where the federal carbon levy applies:

• Alberta
• Saskatchewan
• Manitoba
• Ontario
• New Brunswick
• Nova Scotia
• Prince Edward Island
• Newfoundland and Labrador

2024-2025 Payment Amounts

Annual amounts (paid quarterly) for July 2024 - June 2025:

Rural Supplement

Residents of rural and small communities receive a 20% supplement on their CAIP:

• Recognizes limited access to public transit and green alternatives
• Based on your address from tax return
• CRA determines eligibility automatically

What Qualifies as "Rural"?

Generally, areas outside census metropolitan areas (CMAs) with populations under 100,000. CRA uses postal codes to determine eligibility.

Eligibility Requirements

To receive CAIP, you must:

• Be a Canadian resident
• Live in an eligible province on the first day of the payment month
• File a tax return (even if you have no income)
• Be 19 years old or older, OR have a spouse/common-law partner, OR be a parent

Payment Schedule

CAIP is paid quarterly:

• April 15
• July 15
• October 15
• January 15

If the 15th falls on a weekend or holiday, payment is made the last business day before.

How Payments Are Calculated

Family Structure

• Single: Full individual amount
• Couple: Individual amount + 50% spouse amount
• Children under 19: Additional amount per child
• Single parent: First child receives spouse equivalent amount

Example Family

Ontario family with 2 children (urban):

• Base: $280
• Spouse: $140
• 2 children: $140
• Annual total: $560 ($140/quarter)

No Application Required

You don't need to apply for CAIP specifically:

• File your tax return on time
• Register for direct deposit with CRA for faster payment
• Keep address updated with CRA
• CRA calculates and sends payments automatically

Changes in Circumstances

Moving Provinces

If you move between eligible provinces, your CAIP amount adjusts for future payments based on your new province of residence.

New Child

Register the birth of a child with CRA (through Canada Child Benefit application) to receive the additional amount.

Relationship Changes

Notify CRA of changes in marital status to ensure correct payment calculations.

Tax Treatment

• Not taxable: CAIP is tax-free income
• No clawback: Not reduced by higher income
• Not included: Doesn't affect other benefit calculations

Common Questions

Why is my payment different than expected?

• Province of residence changed
• Rural status changed based on address
• Family composition changed
• Late tax filing delayed payment

I didn't receive my payment. What should I do?

• Confirm you filed your tax return
• Check address with CRA is current
• Wait 10 business days after payment date
• Contact CRA if still not received

Do newcomers receive CAIP?

Yes, once you become a resident and file a Canadian tax return. You may need to complete Form RC151 to apply for benefits.

CAIP vs. Carbon Tax Costs

Studies show that 8 out of 10 Canadian households receive more from CAIP than they pay in carbon costs:

• Lower and middle-income families benefit most
• Higher-consuming households may pay more than they receive
• The system redistributes from higher to lower emitters