The carbon tax is now in effect.

People in Manitoba are paying more on everything from heating their homes to filling up at the pump.

It's all because the federal government wants polluters to pay and hopes to encourage people to use less fossil fuels.

Manitoba is one of four provinces that refused to create its own emissions pricing and must now deal with the carbon tax.

"Honestly it sucks to pay more, but as somewhat of an environmentalist it makes sense to me," said Lauren Tennenhouse while out for a walk with her infant son.

“I don't feel very good about it. It seems outrageous. We live in an environment where it’s freezing cold in the winter and we need to heat our homes,” said Kristen Neufeld just before getting into her car to go work from her River Heights home.

HEATING WITH NATURAL GAS

Manitoba Hydro has close to 282,000 customers who heat their home with natural gas. The tax is 3.91¢ per cubic metre.

The average family will pay $88 this year. By 2022, $220 more.

Electricity is not taxed. The money is collected and sent to Ottawa.

Manitoba Hydro wants people to know the carbon tax does not affect customers who use electricity for heat and is only applied to the natural gas portion of the bill. They have a calculator and explainer on how it works online. 

FILLING UP AT THE GAS STATION

At the pump, drivers will also shell out more from now on, about $2 a tank.

This year, the tax is sending gas up 4.4¢ a litre. By 2022, analysts say the tax will be 11¢ a litre.

Royce Hanson purchased his small car with the environment in mind.

"What's the point of driving an economical vehicle. they're not cheap,” he said. “I don't know where this is going to end."

DELIVERY SERVICES

Food Fare in St. James receives about a dozen deliveries of food a day and pays for that food to be dropped off.

Owner Munther Zeid is still waiting to see what the impact of the carbon tax will be for his customers.

“As an overall basket, it might go up a little bit, but it’s still the start of it. We don't know how our suppliers are going to handle this increase,” said Zeid.

CTV Winnipeg reached out to SkipTheDishes to see if their delivery prices would be going up as a result of the carbon tax.

“Gas prices across Canada often fluctuate and, aside from free delivery promotions, delivery fees don’t change often. Delivery fees take into consideration a number of factors, but the time and distance between the restaurant and the customer, as well as courier costs, are the factors with the highest impact,” said a company spokesperson in an email.

CLIMATE ACTION INCENTIVE REBATE

Ottawa says there is a tax credit for a family of four - up to $339. It’s called the Climate Action Incentive.

“We believe we’ve got a plan that works for Canadians that makes life affordable and takes the action we need to do to reduce our emissions,” said federal environment Catherine McKenna in Toronto Monday.

The Canadian Taxpayers Federation believes some will come out ahead and others won't.

“Anybody who uses diesel at work, farmers truckers, all kinds of people like that,” said spokesperson Todd MacKay.