The Canada Revenue Agency is expected to issue the next quarterly Canada Carbon Rebate (CCR) payment in February 2026, with some households receiving annual totals of up to $1,120, depending on province and family size.
The rebate is not a new benefit. It is part of Canada’s ongoing federal carbon pricing framework, designed to return fuel charge proceeds directly to residents in provinces where the federal system applies. Payments are issued automatically to eligible Canadians who file their taxes.
Here’s what the February 2026 rebate means, who qualifies, and how to make sure your payment arrives without delays.
What the Canada Carbon Rebate Is
The Canada Carbon Rebate is a federal payment that returns most carbon pricing revenues to households.
Rather than keeping the fuel charge proceeds, the federal government redistributes funds directly to residents in eligible provinces. The goal is to:
- Offset higher fuel and energy costs
- Ensure most households receive more than they pay in carbon pricing
- Provide predictable quarterly payments
The rebate is non-taxable and does not reduce eligibility for other federal benefits.
Why the $1,120 Figure Is Getting Attention
The $1,120 amount reflects the maximum estimated annual total some households may receive in higher-rebate provinces, depending on:
- Province of residence
- Household size
- Rural supplement eligibility
It is important to understand that $1,120 is not a single February payment. The rebate is paid quarterly, and February represents one installment in the annual cycle.
How the Rebate Is Calculated
Payment amounts vary across provinces covered by the federal fuel charge.
Provinces typically include:
- Alberta
- Saskatchewan
- Manitoba
- Ontario
Residents of provinces with their own carbon pricing systems may not receive the federal rebate.
Household Size Matters
The rebate includes amounts for:
- The first adult
- A spouse or common-law partner
- Eligible children
Larger households receive higher total payments.
Rural Supplement
Households in rural or small communities may receive a supplemental amount to reflect higher transportation and heating costs.
This rural supplement can significantly increase annual totals, helping push some households toward or above the $1,120 mark.
Who Is Eligible for the February 2026 Payment
Eligibility is based primarily on residency and tax filing status — not income level.
To qualify, you generally must:
- Live in an eligible province
- Be at least 19 years old (or meet family criteria if younger)
- File a tax return for the relevant year
No separate application is required. Payments are determined automatically through tax records.
Families and Seniors
Families With Children
Families receive additional amounts for each eligible child. These amounts are automatically included in the quarterly rebate.
This explains why annual totals for families are significantly higher than for single adults.
Seniors
Seniors are fully eligible if they meet residency and filing requirements. The rebate does not reduce:
- Old Age Security (OAS)
- Guaranteed Income Supplement (GIS)
- Canada Pension Plan (CPP)
For fixed-income seniors, the quarterly rebate can provide steady support throughout the year.
When February 2026 Payments Are Expected
The Canada Carbon Rebate is issued quarterly.
While official dates are published closer to each payment period, February payments typically arrive mid-month.
Delivery methods include:
- Direct deposit (first and fastest)
- Cheque by mail (may take longer)
Canadians enrolled in direct deposit generally receive funds sooner and avoid postal delays.
How the Payment Is Delivered
Direct Deposit
The CRA deposits funds automatically into the bank account on file.
This method is:
- Faster
- More secure
- Less prone to delays
Cheque by Mail
Those not enrolled in direct deposit will receive a mailed cheque. Keeping your address updated is essential to avoid missed payments.
Is the Canada Carbon Rebate Taxable?
No. The rebate is non-taxable.
This means:
- It does not count as income
- It does not affect eligibility for income-tested benefits
- It does not need to be reported on your tax return
Recipients keep the full payment amount.
What Canadians Should Do Now
Even though February 2026 is still months away, preparation matters.
File Your Tax Return
Filing is essential — even if you had little or no income.
Confirm Direct Deposit Details
Log into your CRA account and verify that banking information is accurate.
Update Family and Address Information
Changes in marital status, dependents, or residence can affect payment amounts.
Watch Official Announcements
Payment dates and confirmed amounts are published closer to each quarterly cycle.
Avoiding Scams and Misinformation
As payment discussions increase, so do scam attempts.
Remember:
- You do not need to pay a fee to receive the rebate
- The CRA does not request personal information via unsolicited texts or emails
- Payments are processed automatically using tax records
Always verify information through official CRA channels.
Frequently Asked Questions
1. Is the $1,120 paid in one lump sum in February?
No. The $1,120 represents a potential annual total. February is one quarterly installment.
2. Do I need to apply for the rebate?
No. Payments are automatic if you file your taxes and meet eligibility rules.
3. Who qualifies for the rural supplement?
Residents of eligible rural or small communities in federal fuel charge provinces may receive an additional amount.
4. Does income affect eligibility?
No. Eligibility is based on residency and tax filing, not income level.
5. Is the rebate taxable?
No. The Canada Carbon Rebate is non-taxable.
6. What if I don’t receive my payment?
Check your CRA account, confirm direct deposit details, and contact the CRA if necessary.