To offset the impact of carbon pollution tax increases on Canadians, the Climate Action Incentive (CAI), introduced in 2018, was converted from a tax credit to a cash payment in 2021.
Who's eligible to receive the CAI payment?
You’re eligible for the CAIP if:
- You’re a resident of Canada for income tax purposes at the beginning of the month in which the CRA makes a payment.
- You’re a resident of an applicable CAIP province on the first day of the payment month.
- You’re at least 19 years old in the month before the CRA makes a quarterly payment. Or, if you’re under 19 years old, either:
- You have a spouse or common-law partner or
- Are a parent and live with your child
The amount you receive depends on:
- Your family composition—single only, or with: spouse or common-law partner, child(ren) under age 19, or the first child in a single-parent family.
- The province of residence:
- For 2022: Ontario, Manitoba, Saskatchewan, Alberta
- Plus starting in July 2023: Newfoundland and Labrador, Nova Scotia, Prince Edward Island, New Brunswick
The CAIP is universal, there’s no income-based reduction.
You may not be eligible if, at the start of the specified month, you were:
- A nonresident of Canada, unless you were:
- A Canadian resident any time before the month, and
- Living with your spouse/common-law partner who was a Canadian resident throughout the tax year
- In prison for at least 90 days
- A foreign diplomat
- Receiving a children’s special allowance
How much will I receive?
The CAI payment consists of a basic amount that varies by province, plus a 10% supplement for residents of small and rural communities. To receive the supplement, you must have lived in an eligible area at the end of the year.
CAI payment amounts for 2023–24 can be found on the CRA's Climate Action Incentive payment amounts webpage.
How do I receive the payment?
Beginning in July 2022, the CAI will be paid each quarter to eligible taxpayers via the benefits payment system, similar to payment of the GST/HST credit.
You won't claim the 2022 or later CAI on your tax return, but you'll still need to file a tax return to receive these payments. You also need to indicate on your return if you're eligible for the 10% rural supplement.
For 2020 and prior tax years, the CAI was claimed by one family member per household, on their T1 return line 45110.
