Carbon Tax

The Northwest Territories Cost of Living Offset

The Northwest Territories Cost of Living Offset (COLO) reduces the burden of the carbon tax on NWT residents. Northwest Territories residents receive quarterly, tax-free benefit payments to help offset the cost of the territorial carbon tax.

Who is eligible for COLO?

You will receive the COLO if:

  • you are an NWT resident for at least three months before the payment date; and
  • you filed an income tax return for the previous year.

You must file your income tax and benefit return to receive COLO payments, even if you have no income or your income is tax-exempt.

Do I need to apply to receive COLO?

No. The Canada Revenue Agency (CRA) will assess your income tax return and issue payments to all eligible individuals and families.

How will I receive my COLO payment?

CRA issues quarterly payments (July, October, January, April) by cheque or direct deposit, depending on the information and preferences you have on file.

If you need to update your information with CRA, call the Individual and Benefits Inquiries Hotline at 1-866-426-1527.

How is COLO calculated?

COLO has two components: a base amount to mitigate the carbon tax paid in general and a regional heating component to mitigate the carbon tax paid on heating fuel specifically.

  • All residents receive a base amount that considers the direct and indirect cost of the carbon tax paid by an average NWT household. The 2024 base amount per adult is $416 and per child is $480.
  • Residents also receive a regional heating amount that varies based on the region where they live. Residents living in higher fuel use areas will receive higher COLO payments.

Annual COLO payments for April 1, 2024 – March 31, 2025

  Zone A Total Zone B Total Zone C Total
Adult $441 $451 $470
Child $505 $515 $534

Which zone am I in for COLO payments?

Residents living in higher fuel use areas will receive higher COLO payments.

Zone A: communities in this zone are classified as low fuel use. The communities are:

Colville Lake, Dettah, Enterprise, Fort Good Hope, Fort Resolution, Fort Smith, Hay River, Kakisa, Kátł’odeeche, Ndilǫ, Wrigley and Yellowknife.

Zone B: communities in this zone are classified as moderate fuel use. The communities are:

Aklavik, Behchokǫ̀, Délı̨nę, Fort Liard, Fort McPherson, Fort Providence, Fort Simpson, Gametì, Inuvik, Jean Marie River, Łutselk’e, Nahanni Butte, Sambaak’e, Tsiigehtchic, Tuktoyaktuk, Wekweètı̀ and Wekweètı̀.

Zone C: communities in this zone are classified as high fuel use. The communities are:

Norman Wells, Paulatuk, Sachs Harbour, Tulita and Ulukhaktok.