As of July 2025, eligible Canadians are receiving their next round of Climate Action Incentive Payment (CAIP), with the CRA confirming a $386 payout this quarter. If you live in a province under the federal carbon pricing system, this quarterly benefit could be landing in your bank account soon.
With carbon prices increasing and energy bills climbing, this benefit is becoming a lifeline for many households. Here’s everything you need to know about CAIP in July 2025—including who qualifies, how much you’ll receive, and how to track your payment.
Program
The Climate Action Incentive Payment (CAIP) is a tax-free, quarterly payment issued by the Canada Revenue Agency. Its goal is to offset the financial impact of carbon pricing and support Canadian households in managing rising costs.
Unlike earlier years when this credit was claimed on your tax return, CAIP is now paid automatically four times a year—so you don’t need to apply.
| Feature | Details |
|---|---|
| Program Name | Climate Action Incentive Payment (CAIP) |
| Payment Date | July 15, 2025 |
| Frequency | Quarterly (January, April, July, October) |
| Benefit Type | Tax-free rebate |
| Delivery Method | CRA direct deposit or mailed cheque |
| Website | canada.ca |
This program applies only to provinces where the federal carbon pricing backstop is in place: Alberta, Saskatchewan, Manitoba, and Ontario.
Payment
Here’s a breakdown of what you can expect to receive this quarter, depending on your province and household size:
| Province | Individual | Spouse/Partner | Per Child (Under 19) |
|---|---|---|---|
| Alberta | $386 | $193 | $96 |
| Saskatchewan | $340 | $170 | $85 |
| Ontario | $300 | $150 | $75 |
| Manitoba | $264 | $132 | $66 |
Rural Supplement
If you live outside a census metropolitan area (CMA), you’ll automatically receive a 10% rural supplement on top of your base amount. This helps rural households offset higher fuel and transport costs.
Example: A family of four in rural Alberta receives about $965 per quarter.
Eligibility
You’re eligible for the July 2025 CAIP payment if:
- You were a resident of a participating province on July 1, 2025.
- You filed your 2024 tax return.
- You are at least 19 years old, or
- You have a spouse/common-law partner, or
- You are a parent living with your child.
The CRA uses your most recent tax information to calculate your payment, so be sure your details are accurate and up to date.
How
You don’t need to apply separately for CAIP. Once your tax return is assessed, the CRA will calculate and issue the payment.
To ensure timely and accurate delivery:
- Sign up for direct deposit through CRA My Account.
- Double-check your address and personal details.
- Report any changes in your household or marital status promptly.
If your family size has changed in 2025, update this with the CRA to avoid underpayment or delays.
Tracking
To check on your CAIP status:
- Log in to your CRA My Account online.
- Navigate to the “Benefits and Credits” section.
- View your CAIP eligibility, payment dates, and amount.
If you haven’t received the payment within 10 business days after July 15, contact CRA support directly.
Importance
Why does CAIP matter so much in 2025?
Because the federal carbon price rose again in April to $85 per tonne, energy and fuel costs remain high across the country. The CAIP provides direct compensation for these rising expenses, putting cash back into the hands of Canadian households.
In most cases, lower- and middle-income families receive more in CAIP than they pay in carbon-related costs. That makes CAIP both a climate and financial strategy—rewarding environmentally conscious behaviour while cushioning the financial impact.
If you want to reduce your carbon footprint and keep more money in your pocket, CAIP is here to help.
FAQs
When will I receive my CAIP payment?
July 15, 2025 is the confirmed payment date.
How do I apply for CAIP?
No application needed—it’s automatic with your tax return.
What if I didn’t get my CAIP payment?
Wait 10 business days, then contact the CRA.
Do rural residents get more?
Yes, they receive a 10% supplement automatically.
Who is eligible for CAIP?
Residents of AB, SK, MB, ON who file taxes and meet age/family criteria.
