The $500 Canada Climate Action Incentive Rebate is scheduled for October 2025, providing financial relief to households facing rising fuel and living costs. This tax-free quarterly payment is part of the federal government’s carbon pricing plan, ensuring revenue collected from carbon pollution pricing is returned directly to Canadians.
With the 2025 increase, eligible adults will receive $500, with additional amounts for spouses and children. The October payout will be the third installment of the year.
Climate Action Incentive Rebate
The Climate Action Incentive Rebate (CAIP) is a quarterly payment issued by the Canada Revenue Agency (CRA) to offset the costs of the federal carbon tax. It applies to residents of provinces where the federal carbon pricing system is in place.
In 2025, the rebate amount has been adjusted for inflation and higher fuel costs. The October 2025 payment is expected to begin arriving in bank accounts starting October 15.
Households in rural and remote areas may receive an additional supplement to reflect higher energy needs.
Who Is Eligible?
To receive the October 2025 payment, you must:
- Be a Canadian resident on October 1, 2025
- Have filed a 2024 tax return
- Reside in Ontario, Manitoba, Saskatchewan, or Alberta
- Be at least 19 years old, or live with a spouse, partner, or child
- Live in a province covered by the federal carbon pricing system
Children under 18 qualify for a smaller amount. No separate application is required if your tax filing is up to date.
Provincial Rebate Breakdown
| Province | Adult | Spouse/Partner | Child (Under 18) | Family of 4 Total | Rural Supplement |
|---|---|---|---|---|---|
| Alberta | $500 | $250 | $125 | $1,000 | +10% per person |
| Saskatchewan | $500 | $250 | $125 | $1,000 | +10% per person |
| Manitoba | $500 | $250 | $125 | $1,000 | +10% per person |
| Ontario | $500 | $250 | $125 | $1,000 | +10% per person |
| Other Prov. | N/A | N/A | N/A | N/A | N/A |
Rural households may receive an extra 10% per person.
Payment Date
The October 2025 Climate Rebate will start arriving from October 15, 2025, via direct deposit or mailed cheque.
Tips to ensure you get paid on time:
- Check your banking and address details in CRA MyAccount
- Confirm your marital and family status is correct
- Ensure your rural postal code is recorded if you qualify for the supplement
How the Climate Rebate Helps
The payment helps offset carbon tax costs while promoting environmental responsibility. Benefits include:
- Assistance with heating and fuel costs in colder regions
- Support for transportation expenses in rural areas
- Encouragement for adopting low-emission solutions
- More money returned to most households than paid in carbon taxes
Preparing for the Rebate
To avoid delays:
- File your 2024 tax return
- Keep CRA banking and address details updated
- Confirm household information for accurate payment calculation
The $500 Canada Climate Action Rebate for October 2025 is designed to balance climate policy with cost-of-living support. Eligible households in Ontario, Manitoba, Saskatchewan, and Alberta will receive the payment automatically, with rural families possibly receiving more.
FAQs
When will the October 2025 climate rebate be paid?
Payments start from October 15, 2025.
How much will an adult receive?
Each eligible adult will get $500.
Do rural households get extra?
Yes, a 10% supplement per person.
Do I need to apply for the rebate?
No, it is issued automatically if taxes are filed.
Which provinces are eligible?
Ontario, Manitoba, Saskatchewan, and Alberta.
