With Albertans receiving their carbon tax rebates within the next week, it’s important to understand how the carbon tax will affect you and your household.

It’s January 2, 2018 and the carbon tax has officially gone up by 50%. The initial $20 per tonne tax on carbon dioxide emissions is now $30 a tonne. The carbon tax on gasoline increased from 4.49 cents per litre, to 6.73 cents per litre. For a litre of diesel the tax increased from 5.35 cents, to 8.03 cents. On natural gas the tax increased by about 50 cents per gigajoule (GJ). On propane, from 3.08 cents per litre to 4.62.

The carbon tax does not apply to electricity, and farm fuels are also being exempt. But the tax is in effect on other fuels, such as jet fuel, kerosene, and locomotive diesel. Even the coal that some rural Albertans use to heat their homes.

This increase may not be the visible when you’re filling up your car, but as a homeowner the added 50 cents per GJ of natural gas adds up to an additional $5 per month — for the average household using 10 GJ of natural gas.

The government has estimated another $105 per household for indirect costs associated with the tax in the form of higher prices for some other goods and services. Imported commodities are said to be unaffected.

How does your rebate work?

Hoping to offset this increase is the carbon tax rebate, which the government has also increased by 50%.  These rebates are to be paid out once, twice or quarterly, and are automatically deposited into your bank account, you do not need to apply for the rebate. However, only about 60% of Albertans will receive the rebate.

Rebate eligibility is based on the net income of a household’s latest federal tax return.



Questions? Contact us: info@kbh.ca