In 2019, the federal government levied carbon taxes on fuel in provinces that did not create a carbon tax plan of their own. Since this tax will mostly fall on consumers, families will receive a refund to offset the cost.
Starting in 2019, people in the provinces affected by the federal fuel charge, Ontario, Manitoba, Saskatchewan, and New Brunswick, were eligible for a refund in the form of a Climate Action Incentive refundable credit (claimed on their 2018 personal income tax returns).
Each person over the age of 18 and living in the affected provinces on December 31st must file their income tax return to receive the credit (people under the age of 18 who have a child are also eligible and will need to file taxes to receive the credit). The amount of the credit will vary by province and family size, and will increase each year. The credit for 2021 (which will be claimed on the 2020 personal income tax return) is:
|Single adult or the first adult in a couple:||$300||$360||$500||$490|
|Second adult in a couple, or the first child of a single parent||$150||$180||$250||$245|
|Each child, or additional children:||$75||$90||$125||$123|
|Total for a family of four:||$600||$720||$1,000||$981|
There is a 10% supplement for residents of small and rural communities (where public transit options are limited or unavailable)
We have noticed some confusion with the Supplement for Residents of Rural and Small Communities. On the Schedule 14, it lists various Ontario census metropolitan areas. If you do not see your town or city listed, it does not mean you are eligible for the Supplement. For example, Newmarket and Aurora fall under the Toronto CMA.
For a full listing of CMAs, click here