Bill 1, An Act to Repeal the Carbon Tax, received Royal Assent on June 4, 2019. The carbon levy no longer applies to any type of fuel as of the beginning of the day on May 30, 2019. Fuel sellers are expected to comply with the changes set out in the Bill.

See Carbon levy – Information for fuel sellers and Carbon levy – Information for consumers for more information.

Contact Canada Revenue Agency (CRA) if you have questions related to the federal fuel charge under the Greenhouse Gas Pollution Pricing Act (Canada).

Overview

The carbon levy was a tax on transportation and heating fuels, effective January 1, 2017 to the end of the day on May 29, 2019.

Carbon Levy

The carbon levy was applied to diesel, gasoline, natural gas and propane at the gas station and on heating bills. It did not apply to electricity.

Certain fuels, such as marked gasoline and marked diesel used in farming operations, were exempt.

The levy rate was based on the amount of carbon pollution that is released by the fuel when it is combusted, not the mass of the fuel itself.

Table 1. Carbon levy on major fuels

Type of Fuel Carbon levy rate
for 2018 to end of day
on May 29, 2019
Marked farm fuels Exempt
Diesel 8.03 ¢/L
Gasoline 6.73 ¢/L
Natural Gas 1.517 $/GJ
Propane 4.62 ¢/L
Source: Alberta Climate Change Office
See the complete carbon levy rates table.

Carbon levy household rebates

The carbon tax was repealed on May 30, 2019. This means that government no longer collects carbon tax from Albertans.

Because there is no carbon tax, government will no longer issue rebates to Alberta households.

Rebates were previously sent to Albertans at the beginning of each quarter to cover the future months.

The last household rebate was issued for the period of April 1 to June 30, 2019.

Support for businesses related to the carbon levy

Registration forms, guides and instructional videos are available for businesses related to the carbon levy.

See carbon levy information from Tax and Revenue Administration, who administers the Climate Leadership Act and Regulation, which provides for the collection of Alberta carbon levy from January 1, 2017 to May 29, 2019, and the refund or rebate of carbon levy to eligible fuel sellers and consumers.

Farm fuel exemption

The carbon levy did not apply to marked diesel or marked gasoline used in farming operations.

The farm fuel carbon levy exemption used the same eligibility criteria as the Alberta Farm Fuel Benefit (AFFB) fuel tax exemption. The AFFB registration number was also used for the carbon levy exemption certificate.

For more information, see: Fuel tax and carbon levy - Farmers.

Carbon levy exemptions

Bill 1, An Act to Repeal the Carbon Tax, received Royal Assent on June 4, 2019. The carbon levy no longer applies to any type of fuel as of the beginning of the day on May 30, 2019. Fuel sellers are expected to comply with the changes set out in the Bill.

As a result, all Alberta carbon levy exemptions are no longer applicable, and all carbon levy exemption certificates and licences are cancelled effective at the end of the day on May 29, 2019.

For more information related to direct remitters, licence or exemption certificate holders, see Tax and Revenue Administration Special Notice Vol. 11 No. 14 – Repeal of the Carbon Levy.

Contact Tax and Revenue Administration (TRA) if you have any questions related to the administration of the carbon levy.

Contact Canada Revenue Agency (CRA) if you have questions related to the federal fuel charge under the Greenhouse Gas Pollution Pricing Act (Canada).

Large industrial emitters

Large Industrial Emitters transitioned from the Specified Gas Emitters Regulation (SGER) framework to the Carbon Competitiveness Incentives program on January 1, 2018.