BC Climate Action Tax Credit (BCCATC): What It Was and What You Need to Know

The BC Climate Action Tax Credit (BCCATC) was a tax-free quarterly payment from the Government of British Columbia, designed to help low- and middle-income residents offset the cost of the provincial carbon tax. If you lived in B.C. and filed your taxes, you may have received this benefit automatically alongside your federal GST/HST credit payments.

Important Notice: The BC Climate Action Tax Credit program has ended. The final payment was issued on April 4, 2026. The BC government cancelled the provincial carbon tax effective April 1, 2026, which also brought an end to this credit. However, if you have unfiled tax returns for 2023 or earlier years, you may still be eligible for retroactive payments for those years.

What Was the BC Climate Action Tax Credit?

The British Columbia Climate Action Tax Credit (BCCATC) was a tax-free payment made to low-income individuals and families to help offset the carbon taxes they pay. Unlike most government benefits that require a separate application, you did not need to apply for the BC Climate Action Tax Credit. When you filed your T1 Income Tax and Benefit Return, the Canada Revenue Agency (CRA) determined your eligibility and automatically calculated your credit amount.

The payment was combined with the quarterly payment of the federal GST/HST credit. This means eligible residents received both amounts together in one deposit or cheque — typically in July, October, January, and April each year.

Why Was the BCCATC Cancelled?

On March 31st, the BC government announced that it would be cancelling the carbon tax, effective April 1st, 2026. As a result, the BC Climate Action Tax Credit (BCCATC) was also cancelled. The final payment was on April 4, 2026.

Because the BCCATC existed specifically to offset the burden of B.C.'s carbon tax on lower-income households, eliminating the carbon tax also eliminated the need for this rebate program.

Can You Still Receive Retroactive BCCATC Payments?

Yes — in some cases. If you have not filed your T1 Income Tax and Benefit Returns for 2023 and prior years, you may be eligible for the BC Climate Action Tax Credit for those years. When you file your T1 for those years, the CRA determines your eligibility and automatically calculates your credit amount.

If you believe you may be owed retroactive payments, the recommended steps are:

• File any outstanding tax returns for 2023 and earlier years as soon as possible
• Make sure your spouse or common-law partner also files their returns
• The CRA will automatically calculate and issue any owed amounts
• Contact the CRA directly if you have questions about prior-year eligibility

Who Was Eligible for the BCCATC?

You were eligible to receive the credit for tax years before 2024 if you were a resident of B.C. for that year. Beyond residency, the following conditions applied:

• You were at least 19 years of age, OR
• You had a spouse or common-law partner, OR
• You were a parent living with your child
• You filed your annual income tax return (even if you had no income)
• Only one person could receive the credit on behalf of a family

How Much Was the BCCATC Worth?

The credit amount depended on your family situation and your adjusted family net income (AFNI). The amounts increased over the years to keep pace with rising carbon tax rates. Below are the final payment amounts for the July 2024 – April 2026 benefit period (based on 2023 tax returns):

Maximum Annual BCCATC Amounts (Final Benefit Year: July 2024 – April 2026)

Example: Family of Four (Final Year)

How Was the BCCATC Reduced at Higher Incomes?

The BCCATC was income-tested, meaning the benefit gradually decreased as your adjusted family net income rose above set thresholds. If your income was higher than the threshold, the credit was reduced by 2% of the income above the threshold until the credit became zero.

Income Phase-Out Thresholds (Final Benefit Year: July 2024 – April 2026)

Above these thresholds, the credit was reduced by 2 cents for every dollar of income over the limit, until the credit reached zero.

How Were BCCATC Payments Delivered?

Payments were issued quarterly — in July, October, January, and April — and were processed by the CRA. Key delivery details included:

• Payments were deposited directly to your bank account if you were enrolled in CRA direct deposit
• Otherwise, payments arrived by mail as a cheque
• Despite being a B.C. provincial benefit, the payment appeared on bank statements as coming from the Government of Canada
• If your total annual credit was less than $50, you received it as a single lump-sum payment in July

What Replaced the BCCATC?

With the cancellation of B.C.'s carbon tax, the BCCATC no longer exists. However, BC residents may still benefit from other provincial programs:

• BC Family Benefit (BCFB): A monthly, tax-free benefit for families with children under 18. For July 2026 to June 2026, the BCFB is reduced by 4% of the portion of the adjusted family net income over $29,526. This program remains active.
• BC Seniors' Supplement: A monthly benefit for low-income seniors in BC who receive the federal Old Age Security (OAS) and Guaranteed Income Supplement (GIS)
• Federal GST/HST Credit: A federal quarterly payment for low- and modest-income individuals and families, still delivered by the CRA

Frequently Asked Questions About the BCCATC

Is the BCCATC still being paid in 2026?

No. The Government of British Columbia cancelled the BCCATC, and the last BCCATC payments were issued on April 4, 2026. However, the CRA will continue to issue retroactive payments for previous benefit years.

I see a BCCATC amount on my 2024 tax return — will I receive it?

Clients who have already filed their taxes will see a BCCATC amount listed for the year, but this payment will not actually happen. The cancellation of the carbon tax means no new payments will be made for 2026 and beyond.

Do I need to apply to receive any retroactive BCCATC payments?

No application is needed. Simply file your outstanding tax returns for 2023 or earlier years. The CRA will automatically calculate and issue any amounts owed.

Did I need to include BCCATC payments in my taxable income?

No. The BCCATC was a tax-free payment. You did not need to report it as income on your tax return.

What if I was a BC resident but moved out of province?

Eligibility was based on your residency in British Columbia at the end of the tax year in question. If you moved out of BC, you would not have been eligible for payments in years when you were no longer a BC resident.

Was the BCCATC the same as the Canada Carbon Rebate?

No. These were two separate programs. The federal Canada Carbon Rebate (formerly the Climate Action Incentive Payment) applied to provinces under the federal carbon pricing system. B.C. had its own provincial carbon tax and its own provincial rebate — the BCCATC — which is now cancelled along with B.C.'s carbon tax.

Summary: Key Facts About the BCCATC

If you have questions about whether you are owed any retroactive BCCATC payments, the best step is to file all outstanding tax returns and check your CRA My Account for updates. For other BC benefits that are still active, such as the BC Family Benefit, make sure you file your taxes each year to remain eligible.

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