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Nunavut Carbon Credit

Nunavut Carbon Credit

What is the Nunavut Carbon Credit?

The Nunavut Carbon Credit is a non-taxable payment from the Government of Nunavut (GN) designed to help Nunavummiut offset the price of carbon-based fuels.

Who is eligible?

All Nunavummiut are eligible for this tax credit. There is no income threshold or application required. Simply file your 2022 tax return to start receiving automatic payments.

Payments for children or dependents will be made to the tax filer who claims them on their tax return.

How are payments made?

Payments will be issued directly to Nunavummiut by the Canada Revenue Agency (CRA), similar to other rebate programs like the GST.

Unlike the GST, there is no income threshold or eligibility requirements. All Nunavummiut who file their 2022 taxes will automatically receive the Nunavut Carbon Credit.

How do I register to receive payments?

There is no application required. Nunavummiut who file their 2022 taxes will be immediately enrolled for the Nunavut Carbon Credit.

Nunavummiut enrolled in direct deposit with the CRA will receive a payment directly to their bank account; otherwise, a cheque will be sent to the individual. Payments for children or dependents will be made to the tax filer who claims them on their tax return.

How much is the Nunavut Carbon Credit?

This year, the Nunavut Carbon Credit is a total of $308 per individual, or $77 each quarterly payment per individual.

When will I receive payments?

The first payment of the Nunavut Carbon Credit will be on September 5, and will include payment amounts for the first and second quarter of the year.

The next payment will be on October 5 for the third quarter. Payments will occur on a quarterly basis thereafter – on January 5, April 5, July 5 and October 5 in each year the credit is offered.

About the carbon tax

The Government of Nunavut supports efforts to combat climate change, including taking steps to reduce harmful greenhouse gas emissions.

Carbon pricing lowers harmful emissions by making certain activities, like burning fossil fuels, more expensive. As the price of fuel increases, individuals and businesses have a financial incentive to reduce their use.

In 2019, the Government of Canada introduced a carbon tax across Canada,increasing the cost of fossil fuels like gas and diesel by a few cents a litre. The amount of tax depends on how ‘clean’ the fuel is (how much pollution is released when it burns). Dirtier fuel, such as diesel, is taxed higher than cleaner fuel, like propane. The tax rate will increase each year until 2022.

April 1 2019 2020 2021 2022
$ / tonne 20 30 40 50
Gasoline ($/ L) 0.0442 0.0663 0.0884 0.1105
Diesel ($/ L) 0.0537 0.0805 0.1073 0.1341
Propane ($/ L) 0.0310 0.0464 0.0619 0.0774

The GN supports national efforts to reduce climate change, but recognizes that Nunavummiut have fewer options to reduce their use of fossil fuels than southern Canadians.

Remote communities, limited infrastructure, and a small economy mean it will take longer for Nunavummiut and their businesses to adjust to the higher prices. 

Additional Information

Pan-Canadian Framework for Climate Change and Growth