As of 2026, the carbon tax in Ontario is $0 on gasoline, diesel, natural gas, propane, and other fuels bought by consumers. The federal consumer fuel charge, which used to add cents to every litre and cubic metre, was set to zero on April 1, 2025, and Bill C-4 formally repealed it on March 12, 2026.1Parliament of Canada. Government Bill C-4 – Royal Assent The Canada Carbon Rebate that offset those costs has also ended.
What You Used to Pay
In the final year the charge was active, from April 2024 through March 2025, the carbon price sat at $80 per tonne of CO2 equivalent. That translated into the following amounts baked into fuel prices at the pump and on utility bills:2Canada Revenue Agency. Fuel Charge Rates
- Gasoline: 17.61 cents per litre
- Diesel (light fuel oil): 21.39 cents per litre
- Natural gas: 15.25 cents per cubic metre
- Propane: 12.38 cents per litre
- Aviation turbo fuel: 20.65 cents per litre
- Heavy fuel oil: 25.50 cents per litre
Fuel distributors collected the charge and remitted it to the Canada Revenue Agency under Part 1 of the Greenhouse Gas Pollution Pricing Act. None of these amounts apply now. A gasoline purchase in Ontario today carries no federal carbon charge, and a natural gas bill carries no federal carbon line.
How the Charge Was Removed
Ontario never ran its own consumer carbon pricing system that met federal stringency rules, so the federal fuel charge applied here as the “backstop.” On March 15, 2025, the federal government made regulations that reduced every fuel charge rate to zero, effective April 1, 2025.3Canada Revenue Agency. FCN16 Removal of the Fuel Charge Bill C-4, the Making Life More Affordable for Canadians Act, then repealed Part 1 of the Greenhouse Gas Pollution Pricing Act on March 12, 2026. Full legislative wind-down of the remaining provisions runs to April 1, 2035, but every rate has already been zero since April 2025.1Parliament of Canada. Government Bill C-4 – Royal Assent
The Canada Carbon Rebate Has Ended
The quarterly rebate that returned fuel charge revenue to households is discontinued. The final Canada Carbon Rebate payment went out in April 2025, and no further payments will be issued.4Canada Revenue Agency. Canada Carbon Rebate for Individuals
For reference, the last full year of payments (2024–25) delivered these quarterly amounts to Ontario residents:5Department of Finance Canada. Canada Carbon Rebate Amounts for 2024-25
- Single adult: $140 per quarter ($560 annually)
- Spouse or common-law partner: $70 per quarter ($280 annually)
- Each child under 19: $35 per quarter ($140 annually)
- Family of four: $280 per quarter ($1,120 annually)
Rural residents received a 20% supplement on top. None of these amounts are being paid going forward. For most households the fuel charge and the rebate roughly cancelled out by design, so removing both is close to a wash; households with above-average fuel use may come out slightly ahead, and lower-consumption households may come out slightly behind.
Check Your Bills
If a fuel receipt or utility statement dated after March 31, 2025 still shows a “carbon charge” or “federal carbon levy” line item, call the provider. Nothing at the consumer level should be listed under that label anymore. Provincial fuel taxes, HST, and delivery charges are separate items and have not changed under Bill C-4.
Small Business Rebate Payments Are Still Being Issued
If you run a Canadian-controlled private corporation, the Canada Carbon Rebate for Small Businesses is a separate program that’s still processing payments. The CRA issues these automatically based on T2 corporate tax returns, and most remaining retroactive payments are expected by fall 2026.6Government of Canada. What You Need to Know About the Non-Taxability of the Canada Carbon Rebate for Small Businesses
As of March 26, 2026, legislation confirms the small business rebate is non-taxable for every fuel charge year back to 2019–20. If your business previously reported it as taxable income, the CRA is reviewing returns and will either adjust them automatically or contact you for details.6Government of Canada. What You Need to Know About the Non-Taxability of the Canada Carbon Rebate for Small Businesses It’s worth checking whether your corporation received its expected payment and whether an earlier return needs a second look.
Industrial Carbon Pricing Is a Different System
One boundary worth naming: carbon pricing on large industrial emitters in Ontario has not been removed. Steel mills, cement plants, refineries, and other facilities emitting 50,000 tonnes or more of CO2 equivalent per year fall under Ontario’s Emissions Performance Standards program, with a 2026 compliance cost of $110 per tonne for excess emissions. This system does not appear on household bills and does not affect small businesses. When news coverage references “carbon pricing still in place in Ontario,” this industrial program is usually what it means, not a charge on the fuel you buy.