How donation tax credits work in Canada

How the federal and provincial credits work

For 2025, the federal credit is 14.5% of the first $200 you claim and 29% of the rest. If your taxable income is above $253,414, the part of your claim that matches the income above that line gets 33% instead. Each province and territory has its own two rates, and they aren't the same as your income-tax bracket.

For 2026, the federal credit is 14% of the first $200 and 29% of the rest, with 33% on the part matched by taxable income above $258,482. The CRA hasn't published 2026 donation credit rates, so the calculator carries the provincial and territorial rates over from 2025 and labels the result an estimate.

Add up all the gifts you're claiming for the year first, then apply the rates. You get the lower first-$200 rate once a year, not once per receipt or charity, so combining gifts usually puts more of your claim at the higher rate. Alberta is the exception: its rate on the first $200 (60%) is higher than on the rest (21%).

Example: a $1,000 Ontario claim

Take an Ontario resident in 2025 with $80,000 of net and taxable income, a $1,000 official receipt, and enough federal and Ontario tax owing to use both credits. Federal: $200 × 14.5% + $800 × 29% = $261. Ontario: $200 × 5.05% + $800 × 11.16% = $99.38. The potential credit is $360.38. The same claim for 2026 comes to a federal $260 ($200 × 14% + $800 × 29%) and Ontario $99.38, a potential credit of $359.38, as an estimate.

The gift still costs $1,000. This leaves out the Ontario surtax, alternative minimum tax and special gifts, and it isn't a forecast of the person's refund.

Which income figure matters?

Net income (line 23600) sets the usual limit on what you can claim: 75% of it. Taxable income (line 26000) decides whether any of your claim gets the 33% federal rate. The two can differ after deductions, so check your return instead of entering your salary in both.

Before you rely on the number

Decide on the cause and an amount you can afford without counting on a refund. If you owe little tax, you may not be able to use the whole credit. The calculator doesn't check whether a gift qualifies for a receipt, and it doesn't work out the best split between spouses or years.

• Confirm who issues the receipt and the eligible amount on it.
• Use the right tax year and province; a 2025 result doesn't apply to a 2026 gift.
• Check how much federal and provincial tax you owe before counting the credit as savings.