What is the carbon tax?

In Canada, we all pay a federal carbon tax on the natural gas we use. The carbon tax encourages individuals and businesses to reduce their carbon emissions by shifting towards cleaner energy sources.

The amount of tax you pay depends on the different products you consume and how much you use. You also pay a carbon tax on the natural gas used in your home. You can see the amount of tax on your monthly home energy bill.

The good news is that every quarter, the federal government issues most Canadians a carbon tax rebate. It's a fixed amount that we get back to cover all the carbon taxes we pay and a welcomed bank deposit for most Canadians. This means that you can expect to receive a refund of a part of the taxes you paid for using natural gas.

April 2024 brings increases to the carbon tax rate

Canada's carbon tax rate is increasing in April. Your rebate amount will also go up. What does it mean for you and your household budget?

What’s changing with the Alberta carbon tax?

Our federal carbon tax rate increases each April. This tax offsets carbon emissions as part of our country’s federal environmental commitments. This rate bump is just one in a series of increases that are planned to cap out in 2030.  

The increase shouldn't come as a surprise, but you still might feel some sticker shock. Here's where most Albertans will feel the difference:

• On your energy bill: As of April 2024, the carbon tax rate for natural gas is increasing to 15 cents per cubic metre. The carbon tax on natural gas affects all Albertans, regardless of your chosen energy provider.
• At the pump: As of April 2024, the new carbon tax rate for gasoline is increasing to 17 cents per litre and 21 cents per litre for diesel.
• Many other places use and tax carbon, which may directly or indirectly impact our expenses. These areas include aviation fuel, transportation costs, manufacturing, heating public and commercial buildings, and more.

Carbon tax rebates in Alberta are coming

The federal government issues the Canada Carbon Rebate (previously known as the Climate Action Incentive Payment) quarterly. This puts some of the money you pay on the carbon tax back in your pocket, including natural gas expenses from your home energy bill.

Albertans will also see an increase in the Canada Carbon Rebate in April 2024. For more information on your rebate entitlement, check out Canada Carbon Rebate amounts for 2024–25.

Did you know?  

Alberta has one of the highest rebate amounts in Canada. That means more money back for carbon expenses four times per year.  

When are carbon tax rebates paid in Alberta?

These refunds come out in April, July and October of this year, and January. It starts at $225 quarterly for a single adult and increases based on the number of people living in the home. A family of four can get up to $450 quarterly in rebates.

Want to learn more about your carbon tax refund? Get detailed information about the refund program, including how much you can expect to receive and when to expect your payments here.

Understanding the federal carbon tax

As a natural gas provider, we want to help make it easier for Albertans to help make it easier for Albertans to understand the federal carbon tax and how it affects us all. Here are a few key points to keep in mind:  

The federal carbon tax affects everyone through taxes and refunds. It is part of our country's commitment to reducing greenhouse gas emissions.

Most Albertans receive a carbon rebate four times a year directly into their bank accounts. This ensures that you get back a part of the taxes paid for using carbon fuels like natural gas.

As an energy provider, ATCOenergy supplies natural gas to homes and businesses, which is why you'll see the carbon tax reflected on your bill. We're required to collect and remit this tax on behalf of the government.

It’s important to note that if you have any issues with your carbon tax rebate, it’s best to contact the Canada Revenue Agency (CRA). They handle the administration of the refund program as it's a federal government initiative.  

For more information about carbon tax rates and other related details, you can visit the CRA's website.

Carbon tax tips for Albertans

• Review your household budget

Even though the carbon tax comes with a rebate, the increase will affect your regular household budget. Calculate the amount of natural gas you typically use at the new rate to find out the difference. Anticipating this change can help you avoid unnecessary headwinds in your budget.  

• Submit your taxes

You don't have to apply to receive your Canada Carbon Rebate. However, your taxes need to be current to receive the quarterly payments. Stay on top of your taxes to stay current with the rebate.

• Reduce your energy usage

Using energy for heat, electricity and transportation is inevitable, but there are ways to reduce your usage. Reducing your energy usage also reduces the amount of carbon tax you'll pay.  

• Invest in energy-efficient appliances

Upgrading to energy-efficient appliances is one of the most effective ways to reduce your carbon tax bill.

While these appliances might have a higher upfront cost, they consume less energy. This means lower utility bills and reduced carbon tax over time. Plus, you might qualify for government rebates and incentives that offset some of the initial expenses.

Learn how to save energy at home to bring your bill down with these helpful energy-saving tips from ATCOenergy.  

We're here to help

We strive to keep our customers informed and provide excellent service daily. We hope this information helps you understand the carbon tax rebate in Alberta and how it benefits you.

If you have any questions, you're always welcome to reach out to our friendly Happiness Advisors at 1-844-687-2826 during our business hours: Monday to Friday from 8:00 am - 8:00 pm and Saturdays 8:00 am - 4:30 pm.

Stay in the know

This isn’t the first carbon tax increase — and it won’t be the last. The carbon tax rate is expected to continue to increase every year until 2030. Keep your personal income taxes up to date, to continue receiving quarterly rebates. These rebates are designed to help offset the financial strain of higher energy and fuel prices.  

At ATCOenergy, we believe in keeping our customers informed about important topics like the Canada Carbon Rebate. We'll keep this page updated with any carbon tax developments. Follow ATCOenergy on our social media channels to stay informed.