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2023 Donation Tax Credit Rates Canada & Provinces/Territories
The rate for the tax credit for the first $200 of donations is the lowest personal tax rate, except for Quebec. The rate for the tax credit for donations in excess of $200 is the highest personal tax rate, except for Alberta, New Brunswick, Ontario, Quebec and Yukon. See the Tax Rate Tables.
The Highest Tax Credit Rate column reflects the donations tax credit rate that is in effect to the extent that income is taxed at this rate. This rate will only apply to donations made in 2023, not to donations carried forward from 2022 and earlier years. The tax credit dollar amounts in each column assume that the highest tax rate does not apply.
The effective tax credit rate for Ontario and Prince Edward Island is higher for taxpayers who have taxable income subject to the surtaxes. See notes below.
(1) NB does not use the highest personal tax rate of 14.3% for donations over $200. The NB Income Tax Act s. 25 was revised to set 17.95% as the rate to be used for donations over $200 for 2009 and later years. The NB lowest tax rate was reduced to 9.4% for 2021 and later years.
(2) ON does not use the highest personal tax rate of 13.16% for donations over $200. The Taxation Act, 2007, s. 9(21) was revised to set 11.16% as the rate to be used for donations over $200. This was done for the 2012 and later taxation years. As per s. 9(21) and 7.1(1) or (2), for taxation years ending after December 31, 2015, the rate for donations over $200 will be 17.41% for an individual that is a trust, other than a graduated rate estate or a qualified disability trust.
Due to the Ontario surtaxes, the effective tax rate for donations over $200 is 13.39% for taxable incomes over $86,698, and 17.41% for taxable incomes over $102,135.
(3) AB's highest income tax rate is 15%, but it sets a rate of 21% for donations over $200. Private Member's Bill 202 received Royal Assent in late 2022, increasing the donation tax credit rate for the first $200 of a charitable donation to 60% instead of 10%. This measure was included in the Alberta 2023 Budget, and the 60% rate is in effect starting January 1, 2023.
(4) QC does not use the lowest tax rate of 16% for the first $200 of donations, but the middle tax rate of 20%. The $262 federal donation tax credit is, in effect, reduced by the federal tax abatement of 16.5%. These reductions are shown separately above because they are separate from the tax credit on the tax return. The Quebec 2016 Budget introduced proposals that now provide, starting with the 2017 taxation year, a 25.75% (previously 24%) tax credit rate for donations over $200, to the extent that the taxpayer has taxable income which attracts tax at the 25.75% personal income tax rate. The limitation on donations of 75% of income was eliminated for Quebec for the 2016 and later taxation years.
(5) The federal government introduced legislative proposals on Dec 7, 2015 that now provide, starting with the 2016 taxation year, a 33% tax credit rate for donations over $200, to the extent that the taxpayer has taxable income which attracts tax at the 33% personal income tax rate.
(6) Due to the PEI surtax, the effective tax rate for donations over $200 is 18.37% for taxable incomes over $100,664.
Detailed Canadian Income Tax & RRSP Savings Calculators
Our Tax Calculators include a calculation for the donation tax credit, and indicate if the donations tax credit is not fully utilized, either federally or provincially/territorially.
Note that donations can be carried forward for up to 5 years. The tax credit rate for carried-forward donations when claimed in a subsequent year will be the rates in effect for that year.
Tax Tip: It is usually best to claim all donations on the tax return of one spouse. See our Donation Tax Credit article for more information on this.
Revised: August 24, 2023
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