Last carbon tax rebate arrives Tuesday, but Finance Canada won’t say how much it costs

The final Canada Carbon Rebate is set to be distributed on Tuesday, following the decision by Liberal Leader Mark Carney to end the federal consumer price on carbon. This payment will only be received by individuals who filed their 2024 income taxes electronically by April 2. For those who did not meet this deadline, the rebate will be deposited once the Canada Revenue Agency assesses their return.

The quarterly federal rebate was previously funded by carbon tax revenues, but with the carbon tax on fuel coming to an end on April 1, this last payment could be seen as a bonus or government transfer, as it is no longer being recouped from taxes collected at the pump. While the total cost of this final payment has not been disclosed by Finance Canada, it is estimated to be at least $2 billion based on previous payouts.

Finance Canada spokesperson Benoit Mayrand stated that the government chose to continue the additional payment as an affordability measure, particularly for low-income families who rely on the rebate. However, the timing of this payment, just days before the upcoming election on April 28, has sparked criticism from some, including Green Party co-Leader Jonathan Pedneault, who described it as a “Liberal gift.”

University of Alberta economics Prof. Andrew Leach believes that the decision to maintain the payment was likely made because the carbon tax was not well understood by the public. He emphasized that many individuals did not realize that the first rebate was issued before the carbon price took effect, leading to confusion.

While the exact cost of the final payment remains undisclosed, Finance Canada has released the April 2025 rebate amounts for eligible adults in provinces where the federal carbon rebate applies. These amounts range from $110 in Prince Edward Island to $228 in Alberta, with an additional 20% top-up for Canadians in provinces qualifying for a rural supplement.

Small businesses that were eligible for the Canada Carbon Rebate will also receive reimbursement for carbon tax paid over the last 12 months. The Minister of Finance will specify payment rates to return the previously specified $623.1 million in proceeds for the 2024-25 fuel charge year, according to Finance Canada’s website.