As energy bills and fuel costs rise, many Canadians are feeling the financial pressure of climate policy. To help offset this burden, the federal government is continuing its Climate Action Incentive Payment (CAIP)—a quarterly, tax-free payment aimed at returning carbon pricing revenues to households.
The July 2025 CAIP installment delivers up to $386 per individual, with additional support for families and rural residents. If you’re eligible and live in a province where federal carbon pricing applies, here’s everything you need to know about the CAIP amount, eligibility, and payment timeline.
Table of Contents
What Is the Climate Action Incentive Payment?
The CAIP is part of Canada’s commitment to carbon pricing. It compensates Canadians for higher fuel and energy costs caused by the federal carbon tax. The payment supports both climate action and affordability, especially for low- and middle-income households.
Unlike previous years when the rebate was issued as a lump sum during tax season, it’s now paid quarterly through the Canada Revenue Agency (CRA).
The provinces currently eligible include:
- Alberta
- Saskatchewan
- Manitoba
- Ontario
These provinces don’t operate their own carbon pricing system, so the federal government collects the carbon tax and returns a portion of it to residents through the CAIP.
July 2025 CAIP Payment Schedule
| Payment Date | Method |
|---|---|
| July 15, 2025 | Direct Deposit |
| By July 22, 2025 | Mailed Cheque |
If you’re signed up for direct deposit, check your bank account for a transaction labeled “Climate Action Incentive”. For those receiving paper cheques, processing can take an additional 7–10 business days, especially in rural or remote areas.
How Much Will You Receive?
Your CAIP amount depends on:
- Province of residence
- Marital status
- Number of children
- Whether you live in a rural or urban area
July 2025 CAIP Estimates (Base Amounts):
| Province | Single Adult | Spouse/Partner | Per Child (under 19) | Rural Supplement |
|---|---|---|---|---|
| Alberta | $386 | $193 | $96 | +10% of base amount |
| Saskatchewan | $340 | $170 | $85 | +10% |
| Manitoba | $264 | $132 | $66 | +10% |
| Ontario | $244 | $122 | $61 | +10% |
If you live outside a Census Metropolitan Area (CMA), you qualify for a 10% rural supplement, which is added automatically based on your postal code.
Who Is Eligible?
To receive the July 2025 CAIP, you must:
- Be 19 years or older (or meet exceptions if younger with dependents or a spouse)
- Have filed your 2024 tax return
- Reside in Alberta, Saskatchewan, Manitoba, or Ontario
- Live in a region where the federal carbon pricing system is applied
You don’t need to apply. The CRA calculates eligibility based on your most recent tax return and automatically sends payments.
Why the Payment Matters
With the federal carbon price at $85 per tonne in 2025, higher fuel costs are affecting everything from home heating to groceries. CAIP ensures that:
- Families are not disproportionately impacted
- Rural residents receive extra support for higher fuel use
- Carbon pricing remains a fair, revenue-neutral policy tool
In most cases, families receive more in CAIP payments than they pay in carbon tax, particularly lower-income households.
How to Check Your Payment
Use the CRA My Account portal to:
- Track deposit history
- Verify payment dates
- Update your address, marital status, or dependents
- Ensure direct deposit details are correct
If you haven’t received your CAIP within 10 business days of the issue date, contact the CRA directly at 1-800-959-8281.
Action Steps to Avoid Payment Issues
File your 2024 tax return if you haven’t already
Update your CRA account with changes in address or family status
Sign up for direct deposit to receive payments faster
Check if you qualify for the rural supplement (it’s automatic based on location)
FAQs
Who qualifies for the CAIP in July 2025?
Residents of Alberta, Saskatchewan, Manitoba, or Ontario who are 19+ and have filed a 2024 tax return.
When will the CAIP payment arrive?
Direct deposit payments start July 15, 2025. Mailed cheques may arrive by July 22.
Is there extra money for rural Canadians?
Yes—an automatic 10% top-up is included if you live outside a major metropolitan area.
