As of July 2025, the Canada Revenue Agency (CRA) has officially announced that eligible Canadians will receive their next Climate Action Incentive Payment (CAIP) this quarter.
This $386 tax-free payment is a key component of Canada’s strategy to offset carbon pricing costs for households in provinces under the federal carbon pollution pricing system.
Below, you’ll find a complete guide explaining how the CAIP functions in 2025, including who qualifies, payment dates, and how much you can expect to receive based on your location.
Understanding the CAIP in 2025
The Climate Action Incentive Payment is a quarterly, non-taxable benefit administered by the CRA. Introduced to counteract the rising cost of carbon pricing, the CAIP helps Canadians—particularly those in select provinces—manage increasing energy and fuel costs.
Unlike previous years when the benefit was included in annual tax refunds, since 2022, the CAIP is issued every quarter, giving families more timely support to manage household expenses.
Why the CAIP Is Especially Important in 2025
The federal carbon price rose to $85 per tonne in April 2025, significantly increasing heating, electricity, and fuel bills across Canada. In this context, the CAIP serves as a financial cushion, helping many households recoup more than they pay in carbon-related costs.
This revenue-neutral rebate is structured to protect low- and middle-income Canadians, offering both economic support and environmental encouragement without raising the overall tax burden.
When Will You Receive Your CAIP in July 2025?
The next CAIP installment is scheduled to be paid on July 15, 2025. Canadians who have registered for direct deposit can expect funds to be transferred directly into their bank accounts on that date.
Those expecting paper cheques may face slight delays due to postal processing times, especially in rural or remote regions.
How Much Will You Get? CAIP Payment Breakdown by Province
The CAIP payment varies by province and household composition. Here’s the base payment table for July 2025:
| Province | Individual | Spouse/Partner | Per Child (Under 19) |
|---|---|---|---|
| Alberta | $386 | $193 | $96 |
| Saskatchewan | $340 | $170 | $85 |
| Ontario | $300 | $150 | $75 |
| Manitoba | $264 | $132 | $66 |
Note: If you live outside a Census Metropolitan Area (CMA), you automatically receive a 10% rural supplement, recognizing higher energy use and limited public transit in rural areas.
CAIP Eligibility Criteria for July 2025
To qualify for the CAIP payment this July, you must:
- Reside in Alberta, Saskatchewan, Manitoba, or Ontario as of July 1, 2025
- Have filed your 2024 income tax return
- Be 19 or older, or have a spouse/common-law partner, or be living with a dependent child
If you’ve had any changes in marital status, number of children, or address, make sure to update your CRA records to avoid delays or reduced payments.
Tracking and Managing Your CAIP Payment
If you’re signed up with CRA My Account, you can:
- Monitor your payment history
- View upcoming payment schedules
- Update your personal and banking information
- Choose between digital or paper correspondence
If you don’t receive your CAIP within 10 business days after July 15, contact CRA support for help.
Rural Residents: 10% Bonus Payment
One of the most notable benefits of the CAIP is the automatic 10% increase for those residing outside a CMA. This extra support acknowledges the higher energy costs rural Canadians face, especially in areas where fuel heating and long-distance travel are more common.
To receive this bonus, ensure your address on your tax return is accurate, as CRA uses it to determine rural eligibility.
Is the CAIP Taxable? Will It Affect Other Benefits?
The CAIP is completely tax-free. It does not reduce your eligibility for other federal benefits, including:
- Canada Child Benefit (CCB)
- GST/HST Credit
- Old Age Security (OAS)
- Guaranteed Income Supplement (GIS)
This makes CAIP a pure financial top-up, offering help without impacting other support systems.
Steps to Ensure Timely CAIP Payment
To avoid issues with your July 2025 payment, follow these key steps:
- File your 2024 tax return, even if your income was zero.
- Register for direct deposit for faster access.
- Update CRA records with any changes in marital status, children, or residence.
- Confirm your rural address, if applicable, to receive the 10% supplement.
The $386 Climate Action Incentive Payment in July 2025 is more than just a rebate—it’s a vital component of Canada’s strategy to balance environmental goals with economic fairness.
With carbon costs on the rise, CAIP ensures families, particularly those in carbon-pricing provinces, get the financial relief they need—on time, tax-free, and without affecting their other benefits.
FAQs
What happens if I didn’t file my 2024 taxes?
You won’t receive the CAIP unless you’ve filed your 2024 income tax return, even if you had no earnings.
Can I get the CAIP if I just moved to a qualifying province?
Yes, if you reside in a qualifying province on July 1, 2025, and meet other criteria, you are eligible.
Does CAIP apply in all provinces?
No, CAIP only applies in provinces under the federal carbon pricing system—currently Alberta, Saskatchewan, Ontario, and Manitoba.