BVA Blog

Alberta Carbon Levy

Thursday, December 15, 2016

Starting January 1, 2017 a carbon levy will be included in the price of all fuels that emit greenhouse gases when combusted at a rate of $20/tonne in 2017 and $30/tonne in 2018.

These include transportation and heating fuels such as diesel, gasoline, natural gas and propane. Certain fuels, such as marked gas and diesel used on farms, will be exempt from the levy.

The levy doesn't apply directly to consumer purchases of electricity but it will to fuel purchases. The chart below indicates the carbon levy rate.

Type of FuelJanuary 1, 2017 $20/tonneJanuary 1, 2018 $30/tonne

Marked farm fuels




5.35 cents/litre

2.68 cents/litre


4.49 cents/litre

2.24 cents/litre

Natural Gas

1.011 dollars/GJ

0.506 dollars/GJ


3.08 cents/litre

1.54 cents/litre

The indirect costs of the carbon levy on every household are estimated to range between:

  • $50 to $70 per household in 2017
  • $70 to $105 per household in 2018

Carbon rebates
The rebate is solely tied to income and not energy use. You don't need to apply. You'll automatically receive a rebate if you file a tax return and meet the income criteria.

The rebate (if you qualify) is: $200 for an adult, $100 for a spouse and $30 for each child under 18 (up to four children). Single parents can claim the spouse amount for one child, and the child amount for up to 4 more children.

Full rebates will be provided to single Albertans who earn $47,500 or less, and couples and families who earn $95,000 or less. The maximum income to receive a partial rebates is $51,250 for an adult, $100,000 for a family of 2 adults and $103,000 for a family of 2 adults and 4 children.

Payments will be mailed or direct deposited according to the amount you’re eligible to receive:

  • $400 or more delivered in 4 payments (Jan, Apr, Jul, Oct)
  • $200-$399 delivered in 2 payments (Jan, Jul)
  • $100-$199 delivered in 1 payment (Jan)

For questions about the rebate, please contact the Canada Revenue Agency (CRA), as CRA is administering the program on the province's behalf: 1-800-959-2809.

For additional information, also see

Small Business Support
To help businesses adjust to the carbon levy, Alberta’s small business corporate income tax rate is being reduced by one third, from 3% to 2% effective Jan 1, 2017. With the tax relief, Alberta is now tied with Saskatchewan for the second-lowest provincial small business tax rate. While Manitoba has a lower rate, Alberta small business owners pay lower taxes when they take money out of their business for personal use. Alberta maintains the lowest overall tax regime in Canada, with no provincial sales tax, health premium or payroll tax.

For more information about government support for small businesses, please visit Alberta Jobs Plan.

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Medicine Hat, AB Canada

T1A 8G6

Phone: 403‑527‑8114

Fax: 403‑526‑0908


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