What Happened to the Carbon Tax in New Brunswick?

There is no longer a consumer carbon tax in New Brunswick. The federal government set the fuel charge rate to zero on April 1, 2025, so the per-litre surcharge that had been added to gasoline, diesel, propane, and natural gas is no longer collected at the pump or on heating fuel deliveries. The Canada Carbon Rebate that offset those costs also ended, with the last quarterly payment issued in April 2025. Industrial carbon pricing for large emitters is a separate program and continues to operate.

What Ended on April 1, 2025

The federal government made regulations ceasing the application of the fuel charge under Part 1 of the Greenhouse Gas Pollution Pricing Act. Every fuel charge rate was set to zero, and the requirement for provinces and territories to maintain a consumer-facing carbon price was removed.1Government of Canada. Removing the Consumer Carbon Price, Effective April 1, 2025 In the final pricing period before the repeal, the charge had been adding 17.61 cents per litre to gasoline, 21.39 cents per litre to diesel, and 12.38 cents per litre to propane. None of that is collected now.

New Brunswick had been listed as a backstop jurisdiction under the Act because the province did not maintain its own consumer carbon pricing system meeting the federal benchmark.2Justice Laws Website. Greenhouse Gas Pollution Pricing Act – Part 1 The charge had been scheduled to rise by $15 per tonne each year, reaching $170 per tonne by 2030. That escalation no longer applies to consumers. Fuel distributors stopped collecting and remitting the charge, and all existing fuel charge registrations were cancelled on November 1, 2025.1Government of Canada. Removing the Consumer Carbon Price, Effective April 1, 2025

Can You Still Get a Rebate?

The Canada Carbon Rebate for individuals is closed. The final quarterly deposit went out in April 2025, and no further payments will be issued.3Canada Revenue Agency. Closed – Canada Carbon Rebate (CCR) for Individuals If you haven’t filed your federal income tax returns for any year from 2021 through 2024, you may still be owed money. The CRA only assesses rebate eligibility once a return is filed, so filing the missed return can trigger a lump-sum payment for the quarters you were entitled to but never received.

For the final payment period, based on the 2024 tax year, the New Brunswick amounts were $165 for an individual, $82.50 for a spouse or common-law partner, and $41.25 for each child under 19 (or $82.50 for the first child in a single-parent family). Residents outside the Census Metropolitan Areas of Moncton, Saint John, and Fredericton qualified for a 20% rural supplement on top of those amounts, adding $33 for an individual and $16.50 for a spouse.4Government of Canada. How Much the Payment Amounts Were To receive the rural supplement on a retroactive claim, both you and your spouse or common-law partner should answer the rural community question on page 2 of the applicable tax return to avoid delays.5Canada Revenue Agency. Payments for Those Who Have Not Yet Filed Tax Returns

File even if you had no income in those years. The return is what lets the CRA verify your residency and family status, and a zero-income year still produces a rebate entitlement. People sometimes leave meaningful amounts on the table because they assume there was no reason to file.

Industrial Carbon Pricing Still Applies

The repeal removed the consumer fuel charge only. Carbon pricing for large industrial facilities continues under a separate framework, which the federal government kept in place as part of its climate plan.6Government of Canada. Output-Based Pricing System New Brunswick runs its own provincial Output-Based Pricing System for industry. Facilities emitting 50,000 tonnes or more of carbon dioxide equivalent per year are covered, and facilities between 10,000 and 50,000 tonnes may opt in.7Government of New Brunswick. New Brunswick’s Output-Based Pricing System This affects operations such as power plants, refineries, and large manufacturers. It does not reach households or small businesses, and it does not show up on your fuel or heating bills.

Within that industrial system, the excess emissions charge follows the escalation that had originally been planned for consumers: $110 per tonne in 2026, rising by $15 each year to $170 per tonne in 2030.6Government of Canada. Output-Based Pricing System

A Separate Fuel Tax Break in Summer 2026

Unrelated to the carbon tax, the federal government is temporarily suspending the general federal fuel excise tax from April 20, 2026 through Labour Day, September 7, 2026. During that window, the excise rates on gasoline, diesel, and aviation fuel drop to zero. Normally gasoline carries a 10-cent-per-litre federal excise tax and diesel carries 4 cents per litre.8Government of Canada. Temporarily Suspending the Federal Fuel Excise Tax On September 8, 2026, rates return to their full levels. This is the long-standing federal fuel excise, not a carbon charge, but the practical effect at the New Brunswick pump during summer 2026 is a visible price drop.

Old Farmer and Fisher Exemptions

While the fuel charge was in force, farmers and commercial fishers could buy gasoline and diesel without the surcharge by giving their fuel distributor an exemption certificate. Farmers used Form L402 and fishers used Form L403.9Canada Revenue Agency. Fuel Charge Relief Those certificates are no longer needed. The rate is zero for every buyer, and distributors are not collecting or remitting the charge.