Charitable Donation Tax Credit Rates
Federal Credit
| Donation Amount |
Credit Rate |
| First $200 |
15% |
| Over $200 (income up to $240K) |
29% |
| Over $200 (income above $240K) |
33% |
Provincial Credits (select provinces)
| Province |
First $200 |
Over $200 |
| Ontario |
5.05% |
11.16% |
| British Columbia |
5.06% |
16.80% |
| Alberta |
10.00% |
21.00% |
| Quebec |
20.00% |
25.75% |
| Manitoba |
10.80% |
17.40% |
| Saskatchewan |
10.50% |
14.50% |
| Nova Scotia |
8.79% |
21.00% |
Tax Credit Examples
Ontario Resident
| Donation |
Federal Credit |
Provincial Credit |
Total Credit |
Effective Rate |
| $200 |
$30 |
$10 |
$40 |
20% |
| $500 |
$117 |
$43 |
$160 |
32% |
| $1,000 |
$262 |
$99 |
$361 |
36% |
| $2,000 |
$552 |
$211 |
$763 |
38% |
| $5,000 |
$1,422 |
$546 |
$1,968 |
39% |
| $10,000 |
$2,872 |
$1,104 |
$3,976 |
40% |
Alberta Resident
| Donation |
Federal Credit |
Provincial Credit |
Total Credit |
Effective Rate |
| $200 |
$30 |
$20 |
$50 |
25% |
| $500 |
$117 |
$83 |
$200 |
40% |
| $1,000 |
$262 |
$188 |
$450 |
45% |
| $5,000 |
$1,422 |
$1,008 |
$2,430 |
49% |
| $10,000 |
$2,872 |
$2,058 |
$4,930 |
49% |
Donating Publicly Listed Securities
| Method |
Donation Value |
Capital Gains Tax |
Donation Credit |
| Sell stock β donate cash |
$10,000 |
Taxed on gain (~$1,000+) |
Credit on $10,000 |
| Donate stock directly |
$10,000 |
$0 |
Credit on $10,000 |
Example: Donating Appreciated Stock
| Detail |
Sell & Donate Cash |
Donate Stock Directly |
| Stock value |
$10,000 |
$10,000 |
| Original cost (ACB) |
$4,000 |
$4,000 |
| Capital gain |
$6,000 |
$6,000 |
| Taxable capital gain |
$3,000 (50%) |
$0 |
| Tax on gain (~40%) |
~$1,200 |
$0 |
| Donation receipt |
$10,000 |
$10,000 |
| Tax credit (~40%) |
~$4,000 |
~$4,000 |
| Net tax benefit |
~$2,800 |
~$4,000 |
Extra savings from donating stock directly: ~$1,200
Donation Strategies
Strategy 1: Combine Spouse Donations
| Approach |
Donation |
Credit |
| Each claims $500 |
$1,000 total |
$694 combined |
| One spouse claims $1,000 |
$1,000 total |
$763 (Ontario) |
| Savings from combining |
|
+$69 |
Strategy 2: Super-Size in One Year
Instead of $500/year for 5 years, donate $2,500 in one year:
| Approach |
Total Donated |
Total Credit |
| $500/year Γ 5 years |
$2,500 |
$800 total |
| $2,500 in one year |
$2,500 |
$963 |
| Savings |
|
+$163 |
You can carry forward unused credits up to 5 years.
Strategy 3: Donate in High-Income Year
| Income Level |
Credit Rate on Donations Over $200 |
| Under $240K |
29% federal |
| Over $240K |
33% federal |
| Extra savings on $5,000 |
+$192 |
Strategy 4: Donate RRIF In-Kind
| Step |
Action |
| 1 |
Designate charity as RRIF beneficiary |
| 2 |
RRIF included in final return as income |
| 3 |
Donation credit offsets the income inclusion |
| 4 |
Net tax: close to $0 |
Donation Limits
| Rule |
Limit |
| Maximum annual claim |
75% of net income |
| Year of death |
100% of net income |
| Carry forward |
Up to 5 years |
| Ecological gifts |
100% of net income |
| Cultural property |
100% of net income |
What Qualifies as a Charitable Donation
| Qualifies |
Does Not Qualify |
| Registered Canadian charities |
Gifts to individuals |
| Registered Canadian amateur athletic associations |
Political party donations (separate credit) |
| Canadian government bodies |
GoFundMe / crowdfunding |
| United Nations agencies |
Foreign charities (unless registered in Canada) |
| Prescribed universities outside Canada |
Gifts with benefit received (partial receipt) |
How to Claim
| Step |
Action |
| 1 |
Collect official donation receipts |
| 2 |
Total all donations for the year |
| 3 |
Decide which spouse claims (combine recommended) |
| 4 |
Enter on Schedule 9 of tax return |
| 5 |
Claim on Line 34900 |
| 6 |
Keep receipts for 6 years |