Carbon Tax

The NWT Cost of Living Offset

The Cost-of-Living Offset (COLO) reduces the carbon tax burden on residents. The benefit will increase in step with annual carbon tax rate increases. Residents living in higher heating fuel use areas will receive higher COLO payments. The Canada Revenue Agency issues COLO payments quarterly (July, October, January, and April) provided residents file their annual income tax returns.

The regional COLO has two parts: 

  1. Baseline COLO amount to help offset direct and indirect effects of carbon tax excluding carbon tax on heating fuel. At $65 a tonne carbon tax rate, the baseline COLO amount will be $338 for each adult and $390 for each child under 18 years of age.
  2. In additional COLO amount based on zones to help offset the effect of the carbon tax on heating fuel costs. At $65 a tonne carbon tax rate, Zone A residents will receive $103 per person; for Zone B residents: $145; and for Zone C residents: $220.

Table 2: Cost of Living Offset (COLO) by Community
July 2023 – June 2024

Zone A – Low Fuel Use

Zone B – Moderate Fuel Use

Zone C – High Fuel Use

Per Adult: $441
Per Youth: $493

Per Adult: $483
Per Youth: $535

Per Adult: $558
Per Youth: $610

  • Colville Lake
  • Dettah
  • Enterprise
  • Fort Good Hope
  • Fort Resolution
  • Fort Smith
  • Hay River
  • Kakisa
  • Kátł’odeeche
  • Ndilǫ
  • Wrigley
  • Yellowknife
  • 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
  • Whatı̀
  • Norman Wells
  • Paulatuk
  • Sachs Harbour
  • Tulita
  • Ulukhaktok

The Canada Revenue Agency's Individual and Benefits Inquires Hotline is available at 1-866-426-1527.