Carbon Tax Calculator
The federal consumer carbon tax was eliminated on March 15, 2025. This calculator is kept for historical reference.
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
| Year | Price 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 This calculator is maintained for historical reference and comparison purposes.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?
Who gets the Climate Action Incentive rebate?
Does BC have a carbon tax?
Official Data Sources
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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.