Charitable Donation Tax Credit Calculator
Calculate your Canadian charitable donation tax credit. See federal and provincial credits, your effective cost of giving, capital gains savings for donated securities, and strategies to maximize your tax benefit.
Your Details
The 75% annual donation limit is measured against net income (line 23600), which is higher than taxable income (line 26000) if you claim loss carryforwards, the capital gains deduction, northern residents deductions or the security options deduction. Leave blank to use your taxable income.
Tax Credit Summary
Tax-Smart Giving Strategies
- Bundle donations: Combining two or more years of donations into a single year pushes more of your giving above the $200 threshold, where higher credit rates apply — increasing your total credit.
- Donate securities: Donating publicly listed stocks, ETFs, or mutual funds in-kind eliminates the capital gains tax you would owe if you sold first, making it the most tax-efficient way to give.
- Carry forward: Unused donation credits can be carried forward for up to 5 years, giving you flexibility to apply them in a higher-income year for maximum benefit.
How it works: Canada uses a two-tier donation credit system. The first $200 of donations receives a federal credit of 14.0% (the lowest federal bracket rate — 14.5% for 2025, 14% for 2026, down from 15% before the 1 Jul 2025 rate cut); amounts above $200 receive a 29% federal credit (or 33% if your income exceeds the top federal bracket). Provincial credits mirror this structure with province-specific rates — for example, Ontario applies a lower rate on the first $200 and a higher rate on the remainder. The combined federal and provincial credit can cover 40–55% of your donation depending on your province and income level. Note: Ontario residents may also be subject to a surtax on provincial tax owing, which can further affect the effective credit value. This calculator provides estimates based on published rates and does not constitute tax advice.
About the Charitable Donation Tax Credit
The Charitable Donation Tax Credit (CDTC) is a non-refundable tax credit available to Canadian taxpayers who donate to registered charities and other qualified donees. The credit uses a two-tier system: the lowest federal tax bracket rate (14.5% for 2025, 14% for 2026, down from 15% before the 1 Jul 2025 rate cut) on the first $200 of donations, and 29% on the remainder. Each province adds its own credit on top, so combined rates for donations above $200 typically range from 40% to 54% depending on your province.
High-income donors (33% federal rate): If your income exceeds the top federal bracket threshold ($258,482 for 2026), the federal credit on donations above $200 increases from 29% to 33%. This matches the top marginal rate and effectively makes higher donations even more valuable as a tax planning tool.
Donating securities: Donating publicly traded stocks, mutual funds, or ETFs directly to a registered charity triggers a 0% capital gains inclusion rate on any accrued gain — you pay no capital gains tax. Combined with the full fair market value donation receipt, this strategy can be substantially more tax-efficient than selling the asset and donating the cash proceeds.
Ontario surtax note: Ontario residents with higher incomes may be subject to the Ontario surtax, which can effectively increase the provincial donation credit rate beyond the base 11.16%. This calculator uses the base statutory rates and does not model the surtax — actual Ontario credits may be slightly higher for high-income donors.
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Frequently asked questions
How much tax credit do I get for charitable donations in Canada?
The federal charitable donation tax credit is 14.5% (2025) / 14% (2026) on the first $200 of donations and 29% on amounts above $200 (or 33% if your income exceeds $258,482 for 2026). Provincial credits are added on top, and combined federal-provincial rates typically range from 40% to 54% for donations over $200, depending on your province.
Is there a limit to how much I can claim in charitable donations?
You can claim donations up to 75% of your net income in a given year. Any unused donations can be carried forward and claimed in any of the following 5 years. In the year of death (or the preceding year), the limit increases to 100% of net income.
How do I save tax by donating stocks or mutual funds?
When you donate publicly traded securities (stocks, mutual funds, ETFs) directly to a registered charity, the capital gains inclusion rate is reduced to 0% — meaning you pay no capital gains tax on any accrued gain. You also receive a donation receipt for the full fair market value of the securities. This makes donating appreciated securities significantly more tax-efficient than selling them and donating cash.
Why is the first $200 of donations taxed at a lower credit rate?
Canada uses a two-tier donation credit system. The lower 14% (2026) federal rate on the first $200 mirrors the lowest federal tax bracket rate, while amounts above $200 receive a 29% (or 33%) credit to better reflect the marginal rate most donors actually pay. To maximize your credit, it's often beneficial to pool small donations into a single year rather than spreading them across multiple years, so the lower-rate $200 threshold is crossed only once.
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