Carbon Tax Calculator

The federal consumer carbon tax was eliminated on March 15, 2025. This calculator is kept for historical reference.

2026 Tax YearData stays on your deviceUpdated Apr 1, 2026

Net Annual Cost (After Rebate)

-$560.00

You receive more in rebates than you pay

Total Carbon Cost

$0.00

$0.00/month

CAIP Rebate

$560.00

$140.00/quarter

Gasoline Carbon Cost

$0.00

2,000 L x $0/L

Natural Gas Cost

$0.00

100 GJ x $0/GJ

Carbon Tax Eliminated

The federal carbon tax was eliminated on March 15, 2025. The carbon price is now $0/tonne and CAIP rebate payments have ended.

Canada’s Carbon Pricing History and Current Status

Canada introduced a federal carbon pricing backstop in 2019 under the Greenhouse Gas Pollution Pricing Act. The fuel charge started at $20 per tonne of CO2 equivalent and was scheduled to rise by $15 annually until reaching $170 per tonne by 2030. Provinces that implemented their own equivalent systems — such as British Columbia’s provincial carbon tax and Quebec’s cap-and-trade system — were exempt from the federal backstop.

On March 15, 2025, the federal government eliminated the consumer carbon tax (fuel charge) entirely. All fuel charge rates were set to zero, and the Climate Action Incentive Payment (CAIP) rebate program was discontinued. The industrial carbon pricing system for large emitters (the Output-Based Pricing System) remains in place. British Columbia had already frozen its provincial carbon tax at $65 per tonne in 2024 and subsequently began phasing it out.

Federal Carbon Price Timeline

YearPrice per Tonne
2019$20
2020$30
2021$40
2022$50
2023$65
2024$80
March 2025 onward$0 (eliminated)

While the consumer fuel charge has been removed, the federal government has signalled that industrial carbon pricing and regulatory measures for large emitters will continue. Canadians no longer pay a direct carbon tax at the pump, and the quarterly CAIP rebate payments have ended. This calculator is maintained for historical reference and comparison purposes.

Frequently Asked Questions

What is the carbon tax rate in 2026?
The federal consumer carbon tax (fuel charge) was eliminated on March 15, 2025. All fuel charge rates were set to zero. The Climate Action Incentive Payment (CAIP) rebate program also ended.
Who gets the Climate Action Incentive rebate?
Residents of provinces where the federal backstop applies (ON, AB, SK, MB, and Atlantic provinces) receive quarterly CAIP payments. Most households receive more in rebates than they pay in carbon costs.
Does BC have a carbon tax?
BC has its own provincial carbon tax system and is not part of the federal backstop, so BC residents do not receive the CAIP rebate.

Official Data Sources

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Konstantin IakovlevBuilt and reviewed by Konstantin Iakovlev · Data from CRA, CMHC, Bank of Canada · Methodology

Disclaimer: This calculator provides estimates based on publicly available data from CRA and other government sources. It does not constitute financial advice. Consult a qualified advisor for decisions about your specific situation.

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