The is part of the government's carbon pollution pricing system. It applies to fuels emitting greenhouse gases when combusted, including natural gas. It took effect in Alberta on January 1, 2020, and will increase every April 1 after that until 2030. To learn more, see our FAQs below.
The Federal Carbon Tax applies to all customers that consume natural gas. Regardless of your energy provider, you'll see the tax on your natural gas bill. We have a separate line on our bills to show you exactly how much money the federal government collects based on how much natural gas you've used. You will continue to see this charge in the Distributor and Government Charges section on your natural gas bill as "Federal Carbon Tax."
On April 1, 2023, the Federal Carbon Tax rate increased from $2.629 to $3.327/GJ. How much you pay is determined by how much natural gas you use. In Alberta, the average household consumes about 120 GJs per year. That estimate shows that the annual cost of the carbon tax on natural gas bills will increase by about $84.Ìý
Remember that your monthly natural gas consumption changes depending on the season, with the highest consumption falling in the cold winter months.
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| Dates | $/Carbon tonne | Rate ($/GJ) |
|---|---|---|
| April 1, 2021 - March 31, 2022 | $40 | $2.103 |
| April 1, 2022 - March 31, 2023 | $50 | $2.629 |
| April 1, 2023 - March 31, 2024 | $65 | $3.327 |
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No, the Federal Carbon Tax is not a Direct Energy Tax. All Albertans will pay the tax no matter who their provider is. However, Albertans will be eligible for a Federal Carbon Tax Rebate administered through the income tax system as a Climate Action Incentive payment.Ìý
You can learn more about the .Ìý
You will continue to see this charge in the Distributor and Government Charges section on your natural gas bill as "Federal Carbon Tax."
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All funds collected through the Federal Carbon Tax go to the Government of Canada. Then, the government will return all direct proceeds through direct payments to families and direct investments to reduce emissions.Ìý
Learn more about .Ìý
All Albertans will pay the Federal Carbon Tax. However, many Albertans will be eligible for Climate Action Incentive Payments from the federal government through their personal income tax returns.ÌýÌý
Learn more aboutÌý.Ìý
For questions about the Federal Carbon Tax, contact the regional Prairies Office at 1-866-439-4202.Ìý
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