BC Climate Action Tax Credit (2025 Guide)
The BC Climate Action Tax Credit (CATC) is a quarterly, refundable benefit designed to help low- and moderate-income British Columbia residents offset the cost of BC's carbon tax. If you are eligible, you can receive this credit automatically after filing your annual income tax return. This guide covers who qualifies, how the credit is calculated, payment schedules, and tips for maximizing your benefit.
What Is the BC Climate Action Tax Credit?
The CATC is a provincial credit administered by the Canada Revenue Agency (CRA) on behalf of the BC government. It is paid out quarterly (usually in July, October, January, and April) and is not taxable. The aim is to provide financial relief for the province's carbon tax, especially for lower-income families and individuals.
Eligibility for the BC Climate Action Tax Credit
- You must be a resident of BC on the first day of the payment month and the last day of the previous month.
- You must be at least 19 years old, or have (or had) a spouse/common-law partner, or be (or have been) a parent and live with your child.
- Eligibility is income-tested and based on your family net income as reported on your federal tax return.
- Both individuals and families can qualify. Eligibility and payment amounts are automatically assessed when you file your taxes.
Income Details: Your family net income includes your own and, if applicable, your spouse or common-law partner's net income for the tax year.
Phase-Out Thresholds: For July 2025 – June 2026, the credit begins to phase out once net family income exceeds ~$41,000 for singles, and higher for couples/families (this value is indexed annually). The credit is gradually reduced as income rises above this threshold and is fully phased out at higher incomes (see example calculations below).
Definitions: "Family net income" is the total net income (line 23600 of your tax return) for yourself and your spouse or partner, if you have one. Children under 19 are included as dependents in your calculation.
Tip: Even if you have little or no income, you must file an income tax return to receive the CATC. Spouses/partners must also file for maximum benefit.
How Much Is the BC Climate Action Tax Credit?
The amount you receive depends on your family situation and net income. For the period July 2025 to June 2026, maximum CATC amounts are typically indexed each year. (Check the BC government site for current rates.)
- Single adult: Up to ~$447/year
- Spouse/common-law partner: Additional ~$223/year
- Each child under 19: Additional ~$111/year per child
As your family net income increases above the annual threshold (e.g., ~$41,000 for a single), the credit is gradually reduced. It is fully phased out at higher incomes.
Example Payment Calculations
Example 1: Single Adult, No Children
- Net family income: $38,000
- Eligible for full CATC: $447/year ($111.75 per quarter)
Example 2: Couple with Two Children
- Net family income: $48,000
- Maximum CATC: $447 (primary) + $223 (spouse) + 2 x $111 = $892/year
- Because income exceeds the phase-out threshold, the CATC is reduced by a certain percentage of the income above threshold. See the CRA's "Calculation Sheet for the Climate Action Tax Credit" for detailed formulas.
Example 3: Single Parent with One Child
- Net family income: $42,500
- CATC: $447 (primary) + $111 (child) = $558/year
- Partial reduction applies if income is above the threshold.
For full tables and formulas, visit the BC government CATC page.
When and How Are Payments Made?
- CATC is paid quarterly, often together with the federal GST/HST credit.
- Payments go directly to your bank account if you have direct deposit with CRA, or by mail otherwise.
- If your annual credit is less than $50, it is paid as a lump sum in July.
- You do not need to apply separately—your eligibility is assessed from your tax return.
How to Claim the BC Climate Action Tax Credit
Simply file your income tax return every year, even if you have no income. Ensure your spouse or partner also files. If you have children, list them on your tax return. The CRA will determine your eligibility and automatically pay your credit.
If you did not receive a payment but believe you qualify, check your tax return for errors, ensure your address is correct, and contact the CRA.
Practical Tips for Newcomers, Students & Seniors
- Newcomers: If you arrived in BC during the year, file your first Canadian tax return and complete form RC151 (GST/HST/Climate Action Credit application) to ensure eligibility.
- Students: If over 19 and living independently, file your own tax return to receive the CATC. If you live with your parents, they may claim you as a dependent.
- Seniors: CATC is paid in addition to senior benefits and is not taxable. Ensure both spouses file returns to maximize family benefit.
- Part-time Residents: You must be a BC resident on the first day of the payment month and the last day of the previous month for each quarter.
FAQ: BC Climate Action Tax Credit
Tips for Maximizing Your Credit
- File your tax return on time every year, even if you have no income.
- If you move, update your address with the CRA to avoid missed payments.
- Report any changes to your marital status or children to keep benefits accurate.
- Use direct deposit for faster, more secure payments.
- Retain your Notice of Assessment and all tax documents for reference.
Learn More & Related Guides
- BC Individual Tax Breaks Directory – Explore all provincial credits and benefits
- BC Family & Children Credits – Provincial and Canada-wide family programs
- BC Renter Benefits & Property Tax Relief – Renters, homeowners, and property credits
- Canada-Wide Individual Credits – Federal credits for all Canadians
- GST/HST Rebates – Federal tax credits and rebates
- Climate Action Incentives – Federal and other provincial carbon tax rebates