The Climate Action Incentive Payment (CAIP) is a tax-free quarterly benefit provided by the Canada Revenue Agency (CRA). It is designed to help Canadians offset the rising cost of carbon pricing, which has become more impactful in 2025 due to higher inflation and increased energy costs.
Instead of waiting until tax season, eligible residents receive this payment automatically every three months. For July 2025, the next CAIP payment of up to $386 will hit bank accounts soon, offering much-needed support for families facing utility bill spikes.
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Payment
The CRA has officially scheduled the next CAIP payment for July 15, 2025. If you are signed up for direct deposit, the amount will be deposited straight into your bank account. If you are receiving a paper cheque, it may take a few days longer to arrive.
This payment applies to residents living in provinces where the federal carbon pricing system is in place, including Alberta, Saskatchewan, Manitoba, and Ontario.
Here is the breakdown of July 2025 CAIP payment amounts by province:
| Province | Individual | Spouse/Common-law | Per Child (Under 19) |
|---|---|---|---|
| Alberta | $386 | $193 | $96 |
| Manitoba | $264 | $132 | $66 |
| Ontario | $300 | $150 | $75 |
| Saskatchewan | $340 | $170 | $85 |
Note: If you live in a rural area outside a census metropolitan region, you automatically receive a 10 percent supplement on top of the listed amount.
Eligibility
To qualify for the CAIP in July 2025, you must meet the following conditions:
- Reside in a participating province as of the first day of the payment month
- Have filed your 2024 income tax return
- Be at least 19 years old, or have a spouse/common-law partner, or live with your child
There is no need to apply. If you are eligible and file your taxes, the CRA handles it automatically. Just make sure you update any changes to your marital status, address, or number of dependents to avoid incorrect payment amounts.
Purpose
In 2025, the carbon price has increased to $85 per tonne. That means energy-related costs are higher across the board—fuel, heating, electricity, and more. The CAIP ensures that most of the revenue from carbon pricing is returned to Canadian households.
For many middle- and lower-income families, the amount received from CAIP can actually be more than what they spend in carbon taxes. That makes this benefit not only important but also financially positive.
Tracking
If you are unsure whether you are receiving the CAIP or want to monitor your payments, use the CRA My Account portal. It allows you to:
- View past and upcoming payment dates
- Check your benefit amount
- Update your banking or mailing info
- Sign up for or change your direct deposit settings
If your payment has not arrived by July 25, 2025, it is best to contact CRA support to investigate.
Tips
To make sure you get the most from the CAIP:
- File your taxes even if you have no income. This is the only way CRA determines eligibility
- Use direct deposit for faster access
- Keep your CRA My Account details current
The $386 CAIP payment coming in July 2025 is more than just a rebate. It is a key part of Canada’s strategy to help people manage the cost of living under federal climate policies. With inflation rising and energy bills climbing, this quarterly support helps reduce stress on your monthly budget.
Check that your tax return is filed and your CRA account is up to date so you can get your benefit smoothly and on time.
FAQs
When is the July 2025 CAIP payment date?
The CRA will issue CAIP payments on July 15, 2025.
Who qualifies for CAIP in 2025?
Residents in select provinces who filed 2024 taxes qualify.
How much is the CAIP in Alberta?
An individual in Alberta will receive $386 in July 2025.
Is CAIP taxable income?
No, the CAIP is a tax-free quarterly rebate.
What if I didn’t get my CAIP payment?
Wait 10 business days, then contact the CRA for support.
