Ottawa says a federal carbon tax will be imposed on Alberta starting Jan. 1.
Federal Environment Minister Catherine McKenna says she has written the province to inform it of the decision.
She says 90 per cent of the money collected will go back to Alberta taxpayers in rebates, meaning an average family of four will get $888 returned next year.
Alberta passed legislation officially repealing its provincial carbon tax last week after United Conservative Premier Jason Kenney won the April election on a promise to kill it.
Alberta joins four other provinces — New Brunswick, Ontario, Manitoba and Saskatchewan — which have declined to impose their own carbon levies, leaving Ottawa to impose the federal one.
Kenney has said if Ottawa imposes its fee, he will join Saskatchewan and Ontario in fighting it in court.