Climate action tax credit

The B.C. climate action tax credit is a quarterly payment that helps offset the impact of the carbon taxes paid by individuals and families.

Budget 2023 increased the B.C. climate action tax credit amounts effective July 1, 2023. 

Last updated: June 30, 2023

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Eligibility

You don't need to apply for the B.C. climate action tax credit. When you file your T1 Income Tax and Benefit Return, the Canada Revenue Agency (CRA) determines your eligibility and automatically calculates your credit amount. 

You're eligible to receive the credit if you're a resident of B.C. and you:

  • Are 19 years of age or older, or
  • Have a spouse or common-law partner, or
  • Are a parent who resides with your child.

Only one person can receive the credit on behalf of a family.

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If you have a spouse or common-law partner

Be sure to complete the information concerning your spouse or common-law partner in the Identification area on page 1 of your T1 Income Tax and Benefit Return. Include their net income, even if it is zero, and enter their social insurance number.

Only one of you can receive the credit. The amount of the credit will be the same regardless of which one of you receives it.

 

If you have a child under the age of 19

To receive the credit for your children under the age of 19, they must be registered for the Canada Child Benefit (CCB). If your children are not registered for the CCB, complete the Canada Child Benefits Application form (RC66) or use the Apply for child benefits online service on the CRA's My Account.

Special rules apply to shared custody situations. Learn more about child custody arrangements and the CCB.

 

If you're a B.C. resident for only part of the year

Since payments are issued quarterly, to receive a payment, you must be a resident of B.C. on both the first day of that quarter and the first day of the previous quarter. For example, to get the October payment, you must have been a resident of B.C. on both October 1 and July 1. 

If you move to B.C., your eligibility for the climate action tax credit will be determined once you update your information with the CRA. If you move outside B.C., make sure you advise the CRA as soon as possible to avoid any potential benefit overpayment that you will be required to repay.

 

Payment process

If you’re eligible and have an annual credit amount of more than $40, you’ll receive payments every:

  • July
  • October
  • January
  • April

Each payment is combined with the federal goods and services tax/harmonized sales tax (GST/HST) credit into one payment.

Generally, payments are made on the fifth day of the month. For a list of all payment dates, visit the CRA website.

If your total credit for the year is less than $40, you’ll receive the entire amount in one payment in July.

Note: Climate action tax credit payments are non-taxable. This means you don't include it as income when you file your T1 Income Tax and Benefit Return.

Annual benefit amount

The 2023 Budget increased the climate action tax credit effective July 2023.

Amounts for the July 2023 to June 2024 benefit year

The current benefit year for the climate action tax credit is based on your 2022 T1 Income Tax and Benefit Return, with payments in:

  • July 2023
  • October 2023
  • January 2024
  • April 2024

The maximum you can receive from these four payments combined is:

  • $447 for you
  • $223.50 for your spouse or common-law partner (or for the first child in a single parent family)
  • $111.50 for each child (except the first child in a single parent family)

The income thresholds used to calculate your payment are:

  • $39,115 for individuals
  • $50,170 for families

This means, if your adjusted family net income for the 2022 tax year is below the threshold, you’ll receive the maximum amount based on the size of your family.

If your income is higher than the threshold, the credit is reduced by 2% of the income above the threshold until the credit becomes zero. For families, the point where the credit becomes zero will change depending on your family configuration.

Income threshold amounts for the July 2023 to June 2024 benefit year
  Adjusted family net income threshold amount Reduced credit if adjusted family net income is between Adjusted family net income where credit is reduced to zero
Single $39,115 $39,115 and $61,465 $61,465 or more
Married or common-law with no children $50,170 $50,170 and $83,695 $83,695 or more
Married or common-law with one child $50,170 $50,170 and $89,270 $89,270 or more
Married or common-law with two children $50,170

$50,170 and $94,845

 $94,845 or more
Married or common-law with three children $50,170 $50,170 and $100,420 $100,420 or more
Single parent with one child $50,170 $50,170 and $83,695 $83,695 or more
Single parent with two children $50,170 $50,170 and $89,270 $89,270 or more
Single parent with three children $50,170

$50,170 and $94,845

 $94,845 or more

Calculate your benefit amount

Your B.C. climate action tax credit is based on your family composition and your adjusted family net income.

Your annual B.C. climate action tax credit is the total maximum amount allowed for you, your spouse or common-law partner and each child in your family reduced by 2% of the amount that your adjusted family net income exceeds the threshold.

Your quarterly benefit amount is 1/4 of your annual B.C. climate action tax credit.

Estimate your total benefit payments

You can use the CRA’s Child and Family Benefits Calculator to estimate your total benefit payment for all child and family benefits you may be eligible for, including the B.C. climate action tax credit.

Previous benefit years

Expand the section below to see credit amount details for previous tax years.

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Payments for the July 2022 to June 2023 benefit year

The payments made in July 2022, October 2022, January 2023 and April 2023 are based on your adjusted family net income for the 2021 tax year.

The maximum annual B.C. climate action tax credit payment amounts are:

  • $685.50 each for you and your spouse or common-law partner (or the first child in a single parent family). This includes the $164 enhancement to the October 2022 payment and the $164 B.C affordability credit paid with both the January 2023 and April 2023 payments
  • $179.50 each for all other children. This includes the $41 enhancement to the October 2022 payment and the $41 B.C. affordability credit paid with both the January 2023 and April 2023 payments

October 2022, January 2023 and April 2023 amounts

To help British Columbians with cost of living challenges, the B.C. government introduced three B.C. Affordability Credits, which were added to the B.C. climate action tax credit payments.

The first enhanced payment was made in October 2022. Additional affordability credits were made in January 2023 and April 2023.

If you weren’t eligible for the tax credit in July 2022 due to your income, you may be eligible for these three payments because the maximum amounts are higher. 

For each of these three payments, the maximum was increased to:

  • $212.38 for you, which includes a $164 enhancement for October or the B.C. affordability credit for January and April.
  • $212.38 for your spouse or common law partner (or the first child in a single parent family), which includes a $164 enhancement for October or the B.C. affordability credit for January and April
  • $55.13 for each child (except the first child in a single parent family), which includes a $41 enhancement for October or the B.C. affordability credit for January and April

The income thresholds used to calculate your October 2022, January 2023 and April 2023 payments are:

  • $36,901 for individuals
  • $43,051 for families of various configurations

This means, if your adjusted family net income for the 2021 tax year is below the threshold, you’ll receive the maximum amount based on the size of your family.

If your income is higher than the threshold, the maximum annual credit is reduced by 2% of the income above the threshold until the credit becomes zero. For families, the point where the credit becomes zero will change depending on your family configuration.

Income threshold amount for October 2022, January 2023 and April 2023 quarterly payments

 

Adjusted family net income threshold amount

Reduced credit if adjusted family net income is between

Adjusted family net income where credit is reduced to zero

Single

$36,901

$36,901 and $79,376

$79,376 or more

Married or common-law with no children

$43,051

$43,051 and $128,001

$128,001 or more

Married or common-law with one child

$43,051

$43,051 and $139,026

$139,026 or more

Married or common-law with two children

$43,051

$43,051 and $150,051

$150,051 or more

Married or common-law with three children

$43,051

$43,051 and $161,076

$161,076 or more

Single parent with one child

$43,051

$43,051 and $128,001

$128,001 or more

Single parent with two children

$43,051

$43,051 and $139,026

$139,026 or more

Single parent with three children

$43,051

$43,051 and $150,051

$150,051 or more
 

July 2022 payment amounts

The maximum you can receive for the July 2022 payment is:

  • $48.38 for you
  • $48.38 for your spouse or common-law partner (or for the first child in a single parent family) and
  • $14.13 for each child (except the first child in a single parent family)

The income thresholds used to calculate your July 2022 payment are:

  • $36,901 for individuals
  • $43,051 for families

This means, if your adjusted family net income for the 2021 tax year is below the threshold, you’ll receive the maximum amount based on the size of your family.

If your income is higher than the threshold, the credit is reduced by 2% of the income above the threshold until the credit becomes zero. For families, the point where the credit becomes zero will change depending on your family configuration.

Income threshold amount for the July 2022 quarterly payment

 

Adjusted family net income threshold amount

Reduced credit if adjusted family net income is between

Adjusted family net income where credit is reduced to zero

Single

$36,901

$36,901 and $46,576

$46,576 or more

Married or common-law with no children

$43,051

$43,051 and $62,401

$62,401 or more

Married or common-law with one child

$43,051

$43,051 and $65,226

$65,226 or more

Married or common-law with two children

$43,051

$43,051 and $68,051

$68,051 or more

Married or common-law with three children

$43,051

$43,051 and $70,876

$70,876 or more

Single parent with one child

$43,051

$43,051 and $62,401

$62,401 or more

Single parent with two children

$43,051

$43,051 and $65,226

$65,226 or more

Single parent with three children

$43,051

$43,051 and $68,051

$68,051 or more
 

Payments for the July 2021 to June 2022 benefit year

The payments made in July 2021, October 2021, January 2022 and April 2022 were based on your adjusted family net income for the 2020 tax year.

The maximum annual B.C. climate action tax credit payment amounts were:

  • $174 each for you and your spouse or common-law partner (or the first child in a single parent family)
  • $51 each for all other children

The following table shows the income threshold amount and the income amount where the credit is reduced to zero for some common family configurations.

Income threshold amount for July 2021, October 2021, January 2022 and April 2022 quarterly payments

 

Adjusted family net income threshold amount

Reduced credit if adjusted family net income is between

Adjusted family net income where credit is reduced to zero

Single

$36,142

$36,142 and $44,842

$44,842 or more

Married or common-law with no children

$42,165

$42,165 and $59,565

$59,565 or more

Married or common-law with one child

$42,165

$42,165 and $62,115

$62,115 or more

Married or common-law with two children

$42,165

$42,165 and $64,665

$64,665 or more

Married or common-law with three children

$42,165

$42,165 and $67,215

$67,215 or more

Single parent with one child

$42,165

$42,165 and $59,565

$59,565 or more

Single parent with two children

$42,165

$42,165 and $62,115

$62,115 or more

Single parent with three children

$42,165

$42,165 and $64,665

$64,665 or more
 

Payments for the July 2020 to June 2021 benefit year, including the one-time enhanced payment for July 2020

The payments made in July 2020, October 2020, January 2021 and April 2021 were based on your adjusted family net income for the 2019 tax year.

One-time enhanced payment for July 2020

As part of B.C.'s COVID-19 Action Plan, the B.C. government announced a one-time enhanced B.C. climate action tax credit payment for July 2020.

If you were eligible for the tax credit for July, you were eligible for the one-time enhanced July 2020 payment.

The one-time enhanced July 2020 payment had an increased income threshold amount before the tax credit was reduced to zero. If you weren’t previously eligible for the tax credit due to your income, you may have been eligible for this one-time enhanced payment.

The one-time enhanced July 2020 payment was:

  • Up to $218, an increase of up to $174.50 from the regular tax credit amount, for you, your spouse or common-law partner, or your first child in a single parent family

  • Up to $64, an increase of up to $51.25 from the regular tax credit amount, for each additional child

This means the maximum annual B.C. climate action tax credit payment amounts for the July 2020 to June 2021 benefit year were:

  • Up to $348.50 each for you, your spouse or common-law partner, or your first child in a single parent family

  • Up to $102.25 for each additional child

The enhanced payment was made in July 2020 combined with the federal goods and services tax/harmonized sales tax (GST/HST) credit.

The following table shows the income threshold amount and the income amount where the credit is reduced to zero for your one-time enhanced July 2020 payment for some common family configurations.

For income threshold amounts for October 2020, January 2021 and April 2021 quarterly payments, refer to the next table.

Income threshold amount for the one-time enhanced July 2020 payment

 

Adjusted family net income threshold amount

Reduced credit if adjusted family net income is between

Adjusted family net income where credit is reduced to zero

Single

$35,748

$35,748 and $79,348

$79,348 or more

Married or common-law with no children

$41,706

$41,706 and $128,906

$128,906 or more

Married or common-law with one child

$41,706

$41,706 and $141,706

$141,706 or more

Married or common-law with two children

$41,706

$41,706 and $154,506

$154,506 or more

Married or common-law with three children

$41,706

$41,706 and $167,306

$167,306 or more

Single parent with one child

$41,706

$41,706 and $128,906

$128,906 or more

Single parent with two children

$41,706

$41,706 and $141,706

$141,706 or more

Single parent with three children

$41,706

$41,706 and $154,506

$154,506 or more

Income threshold amount for October 2020, January 2021 and April 2021 quarterly payments

 

Adjusted family net income threshold amount

Reduced credit if adjusted family net income is between

Adjusted family net income where credit is reduced to zero

Single

$35,748

$35,748 and $44,448

$44,448 or more

Married or common-law with no children

$41,706

$41,706 and $59,106

$59,106 or more

Married or common-law with one child

$41,706

$41,706 and $61,656

$61,656 or more

Married or common-law with two children

$41,706

$41,706 and $64,206

$64,206 or more

Married or common-law with three children

$41,706

$41,706 and $66,756

$66,756 or more

Single parent with one child

$41,706

$41,706 and $59,106

$59,106 or more

Single parent with two children

$41,706

$41,706 and $61,656

$61,656 or more

Single parent with three children

$41,706

$41,706 and $64,206

$64,206 or more
 

Payments for the July 2019 to June 2020 benefit year

The payments made in July 2019, October 2019, January 2020 and April 2020 were based on your adjusted family net income for the 2018 tax year.

The maximum annual B.C. climate action tax credit payment amounts were:

  • $154.50 each for you and your spouse or common-law partner (or the first child in a single parent family)

  • $45.50 each for all other children

The following table shows the income threshold amount and the income amount where the credit is reduced to zero for some common family configurations.

Income threshold amount for July 2019 to June 2020
  Adjusted family net income threshold amount Reduced credit if adjusted family net income is between Adjusted family net income where credit is reduced to zero
Single $34,876 $34,876 and $42,601 $42,601 or more
Married or common-law with no children $40,689 $40,689 and $56,139 $56,139 or more
Married or common-law with one child $40,689 $40,689 and $58,414 $58,414 or more
Married or common-law with two children $40,689 $40,689 and $60,689 $60,689 or more
Married or common-law with three children $40,689 $40,689 and $62,964 $62,964 or more
Single parent with one child $40,689 $40,689 and $56,139 $56,139 or more
Single parent with two children $40,689 $40,689 and $58,414 $58,414 or more
Single parent with three children $40,689 $40,689 and $60,689 $60,689 or more
 

Payments for the July 2018 to June 2019 benefit year

The payments made in July 2018, October 2018, January 2019 and April 2019 were based on your adjusted family net income for the 2017 tax year.

The maximum annual B.C. climate action tax credit payment amounts were

  • $135 each for you and your spouse or common-law partner (or the first child in a single parent family)
  • $40 each for all other children

The following table shows the income threshold amount and the income amount where the credit is reduced to zero for some common family configurations.
  Adjusted family net income threshold amount Reduced credit if adjusted family net income is between Adjusted family net income where credit is reduced to zero
Single $33,993 $33,993 and $40,743 $40,743 or more
Married or common-law with no children $39,658 $39,658 and $53,158 $53,158 or more
Married or common-law with one child $39,658 $39,658 and $55,158 $55,158 or more
Married or common-law with two children $39,658 $39,658 and $57,158 $57,158 or more
Married or common-law with three children $39,658 $39,658 and $59,158 $59,158 or more
Single parent with one child $39,658 $39,658 and $53,158 $53,158 or more
Single parent with two children $39,658 $39,658 and $55,158 $55,158 or more
Single parent with three children $39,658 $39,658 and $57,158 $57,158 or more

 

Legislation

The following legislation applies to the B.C. climate action tax credit.