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 Alberta Alberta Carbon Tax and Rebates

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The Alberta Carbon Tax is a federally imposed program that puts a price on carbon emissions in Alberta. Before the
Providers 
federal carbon tax, the province had the Alberta Carbon Levy, which was repealed through Bill 1, an act to cancel the
Wire Service Providers  provincial carbon tax on June 4, 2019. From January 1st, 2020, onwards, Alberta is going to be under the Federal
Carbon Tax, which follows the same premise.

 Get a quick quote The federal carbon tax in Alberta, as well as its revenue and rebates, will follow most of the rules applied in provinces
1-855-635-9608 that didn’t have a provincial carbon tax, or that didn’t meet the minimum standards, such as Ontario, Saskatchewan,
Manitoba and New Brunswick.

What is the Alberta Carbon Tax?

The Alberta Carbon Tax is a federal program implemented to reward residents, businesses, and communities for taking
steps to lower emissions. The tax will be included in the price of any fuel that emits greenhouse gases, including
transportation and heating fuels like diesel, gasoline, natural gas, and propane, and will provide Alberta and other
provinces with a means of transitioning into a more diversified economy.

The money raised by the tax, an expected $610 million over the next four fiscal years, will be reinvested into the Alberta
economy in the form of diversification and job creation, as well as in the form of carbon rebates, also known as Climate
Action Incentive payments, and support for affected sectors so they can adjust to the tax, such as schools, hospitals,
small and medium-sized businesses, colleges and universities, municipalities, Indigenous communities and not for profit
organizations.

As of January 1, 2020, the Alberta carbon tax added an additional 4.42₵/L to gasoline consumption, $1.049/GJ to
natural gas usage, and 3.10₵/L to propane consumption. By 2021, those rates increased to 6.63₵/L for gasoline,
$1.576/GJ for natural gas, and 4.64₵/L for propane.

UPDATE: In order to accelerate the energy transition in Canada, the Federal government announced in 2021 an increase
to the carbon tax annually at a rate of $15 per tonne from 2023-2030. This increase will also result in increased Climate
Action Incentive Payments (CAIP).

Here’s a detailed look at how the carbon tax in Alberta will affect natural gas rates over the next years until 2030. The
tax will flow to natural gas consumers as part of the delivery charges on the monthly bill (GST will also apply).

January 1, 2020, carbon tax costs: $1.0499523/GJ

April 1, 2020, carbon tax costs: $1.5762711/GJ
April, 2021, carbon tax costs: $2.1025899/GJ
April, 2022, carbon tax costs: $2.6289087/GJ
2023, carbon tax costs: $3.42/GJ
2024, carbon tax costs: $4.21/GJ
2025, carbon tax costs: $4.99/GJ
2026, carbon tax costs: $5.78/GJ
2027, carbon tax costs: $6.57/GJ
2028, carbon tax costs: $7.36/GJ
2029, carbon tax costs: $8.15/GJ
2030, carbon tax costs: $8.94/GJ

The Federal government hasn’t published a schedule of increases yet, but is has been historically implementing
increases at the beginning of each fiscal year, in April. 

Find below the estimated fuel charge rates for Alberta until 2030.

January 2020 $20/tonne

April 2020 $30/tonne

April 2021 $40/tonne

April 2022 $50/tonne

2023 $65/tonne

2024 $80/tonne

2025 $95/tonne

2026 $110/tonne

2027 $125/tonne

2028 $140/tonne

2029 $155/tonne

2030 $170/tonne

How does the carbon tax rebate work in Alberta?

The carbon tax rebate in Alberta works similarly as in the other provinces with a federally imposed carbon tax. However,
the first rebate payment claimed by Albertans accounted for a 15-month period: Three months in 2020 (January to
March) and 12 months (April 2020-March 2021).

According to the federal government, a family of four people received $888 in 2020.

$444 for the first adult.

$222 for the second adult in a couple (single parents will receive this amount for their first child).
$111 for each child.

As stated by the Government of Canada, in early 2020, Albertan households received $880 on average ($126 for the
first three months of the carbon pricing and $754 for the next 12 months, April 2020 to March 2021). In the following
years, however, the payments will account for the 12-month period (from March to April), just like in the other provinces.

For 2021 and 2022, the current carbon tax rebates projections for Alberta are as follows.

Charges 2021 ($40/tonne) 2022 ($50/tonne)

First adult in a couple (or single adult) $496 $600

Second adult in a couple (or first child of a single parent) $248 $300

Each child under 18 (or the second child for single parents)  $124 $150

Expected amount for a family of four $992 $1,200

With the increases to the carbon price, the Federal government hasn’t published a schedule of how the Climate Action
Incentive Payments (CAIP) are going to look like from 2023 onwards. However, it has posted illustrative carbon tax
rebate amounts assuming a $15/tonne annual increase in the federal fuel charge starting in 2023.

For 2025 and 2030, the current carbon tax rebates projections for Alberta are as follows.

Charges 2025 ($95/tonne) 2030 ($170/tonne)

First adult in a couple (or single adult) $1,047 $1,621

Second adult in a couple (or first child of a single parent) $537 $811

Each child under 18 (or the second child for single parents)  $268 $405

Expected amount for a family of four $2,147 $3,242

Eligibility: How do you qualify for the Alberta Carbon Rebates?

More than 90% of Albertans will receive a carbon tax rebate from the federal government. According to the Department
of Finance Canada, most Alberta residents will receive more in carbon tax rebates than they incur in increased costs
resulting from the price of emissions.

Before the Alberta Carbon Levy was scrapped in mid-2019, individuals who had a net income of less than $47,500
would receive the full rebate along with couples and families with a net income of less than $95,000. Individuals with a
net income between $47,500 and $51,250, and families with net incomes between $95,000 and $103,000 (depending
on the number of children), would receive partial rebates. However, now under the Federal Carbon Tax, it’s still unclear
what’s going to be the proportion between net income and carbon rebates in Alberta.

How to claim the Alberta carbon tax rebates?

No application is necessary for you to get your rebate. All you have to do is make sure you’ve filed your tax return and
filled in a quick form — you also need to meet the income criteria. The rebate is tied to income rather than energy use.
As a result, eligible recipients will gain a financial incentive to reduce household emissions. The payments are made
through the personal income tax returns. The Climate Action Incentive payments moved in early 2022 from annual to
quarterly payments. For more information about the Alberta Carbon Tax or how rebates work in other provinces, visit
our Federal Carbon Tax Rebates page.

Alberta fair competition statement:

Customers are free to purchase natural gas services or electricity services from a retailer of their choice. For a list of retailers, visit www.ucahelps.gov.ab.ca
or call 310-4822 (toll free in Alberta).

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