Alberta Carbon Tax and Rebates

*Update: On March 15, 2025, the Canadian Federal Government announced changes to the consumer carbon tax. Effective April 1, 2025, the carbon tax will be set to $0. This means that after March 31, 2025, the carbon tax will no longer be applied to natural gas usage.

Customers will still see carbon tax charges for usage incurred up to and including March 31, 2025. For usage periods after March 31, 2025, the line-item Carbon Tax will read $0.00. Eligible Canadians will receive a final Canada Carbon Rebate payment starting April 22, 2025.

To learn more about the change to Canada’s carbon tax, click here for our detailed guide.

The Alberta Carbon Tax is a federally imposed program that puts a price on carbon emissions in Alberta. Before the federal carbon tax, the province had the Alberta Carbon Levy, which was repealed through Bill 1, an act to cancel the provincial carbon tax on June 4, 2019. Since January 1st, 2020, Alberta has been under the Federal Carbon Tax, which follows a similar premise.

The federal carbon tax in Alberta, as well as its revenue and rebates, will follow most of the rules applied in provinces 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 is 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 Canada Carbon Rebates, 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. In the first four fiscal years of the carbon tax in Alberta, it was raised about $610 million.

As of April 2025, the Alberta carbon tax will add 3.3₵/L to gasoline consumption, $2.86/GJ to natural gas usage, and 2.32₵/L to propane consumption. As of April 2026, these charges will increase to a total of 24.2₵/L for gasoline, $5.52/GJ for natural gas, and 17.03₵/L for propane.

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 also resulted in increased Canada Carbon Rebates (CCR).

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
• April 2023, carbon tax costs: $3.3267150/GJ
• April 2024, carbon tax costs: $4.0950825/GJ
• April 2025, carbon tax costs: $4.78/GJ
• April 2026, carbon tax costs: $5.53/GJ
• April 2027, carbon tax costs: $6.29/GJ
• April 2028, carbon tax costs: $7.04/GJ
• April 2029, carbon tax costs: $7.80/GJ
• April 2030, carbon tax costs: $8.55/GJ

Please note that there may be a discrepancy between the estimated price and the actual charge for future increases. We will update this page every April or as soon as the Federal Government confirms the increased amount for each year. The Federal government has been historically implementing increases at the beginning of each fiscal year, in April. You can check the estimated increases until 2030 on the Department of Finance’s official Fuel Charge page. 

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

 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. Albertan households receive rebate payments accounting for a 12-month period (from March to April), just like in the other provinces.

For the 2024 base year, the carbon tax rebates for Alberta are as follows.

For the same base year, the rural supplement is:

• $180 for an individual
• $90.00 for a second adult, spouse, or common-law partner
• $40.00 per child under 19

With the increases to the carbon price, the Federal government hasn’t published a schedule of how the Canada Carbon Rebates (CCR) are going to look like from 2026 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 2030, the current carbon tax rebate projections for Alberta are as follows.

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.

According to the Federal government, you are eligible for the Canada Carbon Rebate (CCR) for individuals if you

1) Are a resident of Canada in the month before the payment.

2) Are a resident of an applicable CCR province on the first day of the payment month:

• Alberta
• Manitoba
• New Brunswick
• Newfoundland and Labrador
• Nova Scotia
• Ontario
• Prince Edward Island
• Saskatchewan

3) Are either at least 19 years old in the month before the CRA makes a payment, or under 19 and you meet at least one of the following conditions:

• You have or had a spouse or common-law partner.
• You are or were a parent, and live(d) with your child.

How do I claim the Alberta carbon tax rebates?

No application is necessary for you to receive 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 Canada Carbon Rebate payments moved in early 2022 from annual to quarterly payments, usually on the 15th of April, July, October, and January. When the 15th falls on a Saturday, Sunday, or a federal statutory holiday, the payment will be made on the last business day before the 15th.

For more information about the Alberta Carbon Tax or how rebates work in other provinces, visit our Federal Carbon Tax Rebates page.