Charitable Donation Tax Credit in Canada 2025

Donating to registered Canadian charities not only supports causes you care about — it also generates a significant federal tax credit. Canada's charitable donation tax credit is structured to reward larger donations more generously, with rates increasing after the first $200.

How the Charitable Donation Tax Credit Works

The federal charitable donation tax credit is calculated in two tiers:

• 15% on the first $200 of donations = up to $30 in credit
• 29% on donations above $200 (or 33% if your income is in the top federal bracket)

Each province also provides its own donation credit on top of the federal credit, typically ranging from 4% to 24% depending on the province. Combined federal and provincial credits for donations over $200 typically range from 40% to 55%.

Donation Tax Credit Calculator

Pooling Donations with Your Spouse

One of the most effective strategies for maximizing the charitable donation credit is to pool all household donations on one person's return. Since the 29% rate only kicks in after $200, combining two people's $100 donations into one $200 claim earns the same credit as two separate $200 claims — you are not double-counting. But if one partner has $300 and the other has $100, claiming all $400 on one return earns 29% on $200 instead of earning 15% on two separate $100 claims. The higher-income spouse should typically claim the combined donations.

Carrying Forward Donations

Unused charitable donation receipts can be carried forward for up to 5 years. This means if you do not have enough tax owing in the current year to benefit from the credit, you can save the receipts and claim them in a future year. You can also pool multiple years' donations into one year's claim to push more amounts into the 29% tier.

What Qualifies as a Charitable Donation?

To claim the credit, donations must be made to a registered Canadian charity or other qualified donee. The charity's CRA registration number should appear on your official receipt. Qualifying donees include:

• Registered Canadian charities (hospitals, universities, churches, non-profits)
• Canadian amateur athletic associations
• United Nations and its agencies
• Certain foreign universities where Canadian students attend
• Government of Canada, provinces, and municipalities

Donations to foreign charities generally do not qualify unless they are registered with the CRA or meet specific criteria.

Non-Cash Donations

You can also donate property, securities, and other assets to registered charities. Donating publicly traded securities (stocks, mutual funds, ETFs) directly to a charity is particularly tax-efficient: you receive a donation receipt for the fair market value and pay zero capital gains tax on the donated securities. This is far more tax-efficient than selling the securities and donating cash.

First-Time Donor Super Credit (Expired)

The First-Time Donor Super Credit, which added an extra 25% credit for first-time donors, expired after the 2017 tax year and is no longer available.