If you recently received an unexpected cheque from the federal government, it may be your Climate Action Incentive Payment (CAIP). Many Canadians receive this payment without fully understanding what it is or how it works. This guide explains the CAIP program, eligibility, payment amounts, and how to receive it.

Main Points

• The Climate Action Incentive Payment (CAIP) helps eligible Canadians cover the cost of the federal carbon tax.

• Payments are issued every three months.

• Residents of Alberta, Saskatchewan, Manitoba, Ontario, New Brunswick, P.E.I., Nova Scotia, and Newfoundland & Labrador qualify.

• To receive CAIP automatically, you must file your taxes on time each year.

What Is the Climate Action Incentive Payment?

The CAIP is a tax-free payment provided to individuals and families to help offset the federal pollution (carbon) tax. It includes:

• A basic amount, and

• An additional rural supplement for residents of small or rural communities.

Earlier, CAIP was a refundable credit claimed annually. Since July 2022, the payment is issued quarterly through the benefit system.

How CAIP Works in Different Provinces

The federal fuel charge applies only in provinces without their own carbon pricing system.
CAIP is available in:

• Alberta

• Saskatchewan

• Manitoba

• Ontario

• New Brunswick

• Newfoundland & Labrador

• Nova Scotia

• Prince Edward Island

Special Notes

• Fuel charge began July 1, 2023, in NL, NS, PEI, and NB.

• Residents in these provinces received three payments in the first year.

• New Brunswick residents received a double payment in October 2023.

Why Does CAIP Exist?

Canada introduced the federal carbon tax to reduce greenhouse gas emissions. This tax increases the cost of carbon-emitting items such as fuel.

To ensure households are not financially burdened:

• 90% of carbon tax revenues are returned to Canadians through CAIP.

• 10% go to small businesses and Indigenous communities.

• Most households receive more money back than they pay in carbon tax.

Who Benefits from CAIP?

You do not receive CAIP if you live in:

• Quebec

• British Columbia
  (because these provinces have their own carbon pricing systems)

You do qualify if:

• You live in one of the eight participating provinces.

• You are a Canadian resident for income tax purposes.

• AND you meet one of the following:

  • You are 19 years or older, OR

  • You have (or had) a spouse or common-law partner, OR

  • You are a parent living with a child.

Children and Shared Custody

• Your child must be registered under the Canada Child Benefit (CCB) for you to receive the full CAIP.

• In shared custody, each parent receives 50% of the child amount.

 

How Do I Sign Up for CAIP?

Great news, you don’t need to apply if you file your taxes every year. Payments are issued automatically.

If You Are New to Canada

If you have children:

• Fill Form RC66 (Canada Child Benefits application)

• Fill Form RC66SCH (Status in Canada & Income Statement)

If you do not have children:

• Fill Form RC151 (GST/HST & CAIP application)

• Mail it to your tax centre

Rural Supplement

If you live in a rural area, check the appropriate box on your tax return to receive the rural top-up.

How Much Is the CAIP?

The amount depends on:

• Your province

• Your family size

Payments are made quarterly:
April, July, October, and January

General Ranges

• Adults receive approximately $92 per quarter in NB

• Up to $193 per quarter in Alberta

• Annual totals can reach $772 or more for larger families

Use the Government of Canada’s website to check exact provincial amounts.

When Will You Receive CAIP Payments?

Payment Dates:

• April 15

• July 15

• October 15

• January 15

If these fall on a weekend or holiday, you receive the payment on the last business day before.

Important Notes

• Payments appear as “Climate Action Incentive” in your bank account.

• Direct deposit is available.

• CAIP can be used to pay off any outstanding tax debts.

If you don’t receive your payment on time, wait 10 business days before contacting the CRA.

Summary

• Eligibility: Residents of 8 provinces

• Payment Frequency: Quarterly

• Purpose: Offset federal carbon tax

• Amount: Varies by province and family size

• How to Receive: Automatic for tax filers

• Direct Deposit: Available

FAQs: Climate Action Incentive Payment (CAIP)

1. What is CAIP?

A tax-free quarterly payment to offset carbon tax costs.

2. Who is eligible?

Residents of AB, SK, MB, ON, NB, NS, NL, PEI.

3. How do I receive CAIP?

File your taxes—payments are automatic.

4. Why does CAIP exist?

To help Canadians manage rising costs from the federal carbon tax.

5. How often are payments made?

Every three months.

6. Which provinces get the fuel charge?

NL, NS, PEI, and NB (starting July 1, 2023).

7. Who benefits the most?

Households in provinces without their own carbon pricing system.

8. How much will I receive?

Amount varies by province and family size.

9. What are the payment dates?

April 15, July 15, October 15, January 15.

10. Can I get direct deposit?

Yes, through CRA direct deposit.

11. Can CAIP be used for tax debt?

Yes, CRA may apply it to outstanding balances.

12. What if I don’t receive my payment?

Wait 10 business days, then contact CRA.