Carbon tax costs average family up to $710 this year: Parliamentary Budget Officer

Author: Franco Terrazzano 2023/03/30

OTTAWA, ON: The Canadian Taxpayers Federation is calling on the federal government to scrap the carbon tax following today’s Parliamentary Budget Officer report showing the carbon tax costs families hundreds of dollars more than they get back in rebates.

“The PBO is clear: the carbon tax costs families hundreds of dollars more every year than the rebates they get back,” said Franco Terrazzano, Federal Director of the CTF. “The PBO shows politicians are using magic math to sell their carbon tax.”

The Trudeau government claims “families are going to be better off” with its carbon tax and rebates. However, today’s PBO report shows this is incorrect. 

“Most households will see a net loss, paying more in fuel charges and GST, as well as receiving lower incomes, compared to the Climate Action Incentive payments they receive and lower personal income taxes they pay,” according to the PBO. 

The carbon tax will cost the average household up to $710 this year after the rebates. The table below shows the net federal carbon tax costs for the average household, according to the PBO. 


Net cost (total cost – rebates) for the average household, 2023









Nova Scotia


Prince Edward Island


Newfoundland and Labrador


“It simply isn’t credible to believe the feds can raise taxes, skim some off the top for administration costs and somehow make families better off,” Terrazzano said. “Prime Minister Justin Trudeau should scrap the carbon tax to save families hundreds of dollars every year.”

Due to the tax-on-tax, the carbon tax also increases the amount of sales tax Canadians pay. 

“We estimate that $429 million in GST from the fuel charge will be collected in 2023-24, rising to $924 million in 2030-31,” according to the PBO. 

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Franco Terrazzano
Federal Director at
Canadian Taxpayers

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