With energy costs climbing and climate policies tightening, Canadian households are set to receive some relief. The Canada Revenue Agency (CRA) has officially confirmed the $386 CAIP (Canada Carbon Rebate) deposit for July 15, 2025.
This quarterly payment aims to offset the impact of federal carbon pricing, offering a much-needed financial break for eligible families.
Here’s everything you need to know about this year’s summer installment.
Table of Contents
Overview
The CAIP—formerly known as the Climate Action Incentive Payment—is a tax-free quarterly rebate from the federal government. Its purpose is simple: to return a portion of the money collected from the carbon tax back to the people, especially those living in provinces under the federal carbon pricing system.
This rebate is automatically paid out four times a year to qualifying residents, with no application needed. All you have to do is file your taxes and meet the basic eligibility rules.
In July 2025, eligible individuals in Alberta, Ontario, Saskatchewan, and Manitoba will receive their payment.
Purpose
Why does CAIP even exist?
This rebate is a way for the government to cushion the blow of carbon pricing—a cost added to fossil fuel use to encourage cleaner alternatives.
Since carbon pricing can hit households hard, especially during high energy seasons, the government pays out a portion of those collected funds through CAIP.
It’s designed to:
- Offset higher living and energy costs
- Encourage greener practices
- Maintain public support for climate policy
- Support low- and middle-income households
In short, it’s a balancing act between climate action and cost of living.
Eligibility
Want to receive the July 2025 CAIP? Here’s what you need to qualify:
- Be a resident of Alberta, Ontario, Saskatchewan, or Manitoba on July 1, 2025
- Be 19 years or older, or have a spouse/common-law partner, or a child
- File your 2024 tax return
- Report any changes in marital status or dependents to the CRA to avoid delays
There’s no need to apply separately—if you’re eligible, the CRA handles the rest.
Payment
The July 15, 2025 deposit date has been confirmed by the CRA, and payments will land directly in your bank account if you’re enrolled in direct deposit. Otherwise, you’ll receive a mailed cheque.
Here’s how the amounts break down by province:
Province | Individual | Spouse/Partner | Per Child (Under 19) |
---|---|---|---|
Alberta | $386 | $193 | $96 |
Manitoba | $264 | $132 | $66 |
Ontario | $300 | $150 | $75 |
Saskatchewan | $340 | $170 | $85 |
These amounts are designed to ensure that most households receive more in rebates than they pay in carbon taxes.
Impact
Let’s talk about why CAIP matters:
- Financial Relief: For many households, this money helps offset higher fuel and energy bills
- Encourages Sustainability: By pricing carbon, the program pushes people and businesses to adopt eco-friendly alternatives
- Supports Equity: CAIP is progressive—meaning lower-income households get a proportionally higher benefit
CAIP isn’t just a cheque in the mail. It’s part of a bigger strategy to make the green transition affordable, while also ensuring that everyday Canadians aren’t left behind.
As carbon taxes increase, so too does the importance of CAIP.
By keeping your tax information current and your CRA profile up to date, you ensure that you don’t miss out on this important quarterly support.
FAQs
When is the July CAIP payment date?
The deposit is scheduled for July 15, 2025.
How much will I get from CAIP in Alberta?
You’ll get $386 as an individual, plus more for family members.
Do I need to apply for CAIP?
No, it’s automatic once you file taxes and meet the criteria.
Who qualifies for CAIP payments?
Canadians 19+ in eligible provinces who filed 2024 taxes.
Is CAIP taxable income?
No, CAIP is completely tax-free.