Donations to a registered charity don’t reduce your taxable income the way a deduction does. They earn a non-refundable tax credit that comes off the tax you owe, and the credit rate steps up once your total gifts for the year pass $200. This page works out what that credit is worth, federally and by province, and covers the rules that change the value: donating securities, pooling a couple’s receipts, carrying gifts forward and the annual limit. It is one of the Canadian tax deductions and credits in this guide; for why a credit and a deduction of the same size save different amounts, see how a tax deduction differs from a tax credit.
Charitable donation tax credit rates
Federal credit
| Donation Amount | Credit Rate |
|---|---|
| First $200 | 14% |
| Over $200 (income up to $258,482 in 2026) | 29% |
| Over $200 (income above $258,482 in 2026) | 33% |
Provincial credits (select provinces)
Each province adds its own non-refundable credit on top of the federal one, with its own two tiers.
| Province | First $200 | Over $200 |
|---|---|---|
| Ontario | 5.05% | 11.16% |
| British Columbia | 5.60% | 16.80% |
| Alberta | 60.00% | 21.00% |
| Quebec | 20.00% | 24.00% |
| Manitoba | 10.80% | 17.40% |
| Saskatchewan | 10.50% | 14.50% |
| Nova Scotia | 8.79% | 21.00% |
Alberta has applied a 60% provincial rate to the first $200 since 2023. That rate is unrelated to Alberta’s income tax brackets, and it means a small donation there returns most of its cost.
Tax credit examples
Ontario resident
| Donation | Federal Credit | Provincial Credit | Total Credit | Effective Rate |
|---|---|---|---|---|
| $200 | $28 | $10.10 | $38.10 | 19.1% |
| $500 | $115 | $43.58 | $158.58 | 31.7% |
| $1,000 | $260 | $99.38 | $359.38 | 35.9% |
| $2,000 | $550 | $210.98 | $760.98 | 38.0% |
| $5,000 | $1,420 | $545.78 | $1,965.78 | 39.3% |
| $10,000 | $2,870 | $1,103.78 | $3,973.78 | 39.7% |
Alberta resident
| Donation | Federal Credit | Provincial Credit | Total Credit | Effective Rate |
|---|---|---|---|---|
| $200 | $28 | $120 | $148 | 74.0% |
| $500 | $115 | $183 | $298 | 59.6% |
| $1,000 | $260 | $288 | $548 | 54.8% |
| $5,000 | $1,420 | $1,128 | $2,548 | 51.0% |
| $10,000 | $2,870 | $2,178 | $5,048 | 50.5% |
With the 60% first-tier rate, a $200 donation in Alberta returns $148, a 74% effective rate. The effective rate then falls as the donation grows, because more of the gift is credited at the second-tier rate.
Donating publicly listed securities
Donating publicly listed shares, ETF units or mutual fund units directly to a charity, instead of selling them and giving the cash, removes the capital gains tax on the appreciation while the receipt is still issued for the full fair market value.
| Method | Donation Value | Capital Gains Tax | Donation Credit |
|---|---|---|---|
| Sell stock → 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
Most large charities and foundations accept securities through an electronic transfer from your brokerage account to the charity’s investment account.
Other non-cash gifts
- Real estate: you can donate real property, but the valuation and tax treatment are complex.
- Artwork, certified cultural property and ecological land: special valuation rules apply, and these gifts have their own annual limits (see the limits table below).
Pooling donations between spouses
Because the federal rate jumps from 14% to 29% above $200, claiming all of a couple’s donations on one return puts more of the total in the higher tier than splitting them across two returns does. If one partner’s income reaches the top federal bracket, that partner’s claim also gets the 33% rate on the part above $200.
| Approach | Donation | Credit (Ontario) |
|---|---|---|
| Each spouse claims $500 separately | $1,000 total | $317.16 combined |
| One spouse claims $1,000 | $1,000 total | $359.38 |
| Savings from combining | +$42.22 |
Carrying donations forward
You don’t have to claim a donation in the year you make it. Unclaimed gifts can be carried forward for up to 5 years, which lets you group several years of receipts into one claim so that only one $200 first tier applies, or move a claim into a year with more income.
| Approach | Total Donated | Total Credit (Ontario) |
|---|---|---|
| $500/year × 5 years | $2,500 | $792.90 total |
| $2,500 in one year | $2,500 | $961.78 |
| Savings | +$168.88 |
Carrying a gift forward is different from going back to claim a receipt you forgot on an earlier return; that is covered in what to do if you forgot to claim charitable donations.
Donating in a high-income year
| Income Level | Credit Rate on Donations Over $200 |
|---|---|
| Under the top bracket threshold ($258,482 in 2026) | 29% federal |
| In top bracket ($258,482+ in 2026) | 33% federal |
| Extra savings on $5,000 | +$192 |
Naming a charity as RRIF beneficiary
| 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 |
The First-Time Donor’s Super Credit, which added an extra 25% credit for first-time donors, ended after the 2017 tax year and can’t be claimed on a current return.
Which gifts qualify
Only gifts to registered charities and other qualified donees earn the credit; gifts to individuals, crowdfunding campaigns and unregistered groups don’t. How to look a charity up in the CRA listings, what a valid receipt must show and how US charities and gala tickets are treated are covered in how to check whether a donation is tax-deductible, which also explains the separate credit for political contributions.
How to claim
| Step | Action |
|---|---|
| 1 | Collect official donation receipts |
| 2 | Total all donations for the year |
| 3 | Decide which spouse claims (pooling is covered above) |
| 4 | Enter on Schedule 9 of tax return |
| 5 | Claim on Line 34900 |
| 6 | Keep receipts for 6 years |
You don’t attach the receipts when you file, but keep them in case the CRA asks for them. For other ways a return can lower your bill, see how to pay less tax in Canada.