Quick answer: In 2026 the federal charitable donation tax credit is 14% on the first $200 of total annual donations (matching the lowest 2026 federal personal rate under Bill C-4) and 29% on every dollar above $200 (or 33% on amounts above $200 that fall against income in the top federal bracket, which starts at $258,482 in 2026). Ontario adds 5.05% on the first $200 and 11.16% above. Combined federal + Ontario credit above $200: roughly 40.16%.
What this means: A $1,000 donation by an Ontario taxpayer with income under $258,482 returns: $200 × (14% + 5.05%) + $800 × (29% + 11.16%) = $38.10 + $321.28 = $359 in combined tax credit. The credit is non-refundable, transferable between spouses on one return, and unused amounts carry forward up to 5 years.
What to do next: Estimate the credit for your specific donation and province. Run the calculator →
2026 federal donation tax credit rates
The federal credit has two statutory rates plus a high-income premium under Income Tax Act s. 118.1:
| Donation portion | 2026 federal rate |
|---|---|
| First $200 of total annual donations | 14% (matches the lowest 2026 federal personal rate) |
| Above $200 (when not in top bracket) | 29% |
| Above $200, applied against income in the top federal bracket ($258,482+ in 2026) | 33% |
The credit is non-refundable — it reduces tax owed but won’t produce a refund beyond bringing your federal tax liability to zero. CRA’s reference page: How to calculate your charitable tax credits.
The first $200 rule
The federal credit jumps from 14% to 29% the moment you cross $200 of cumulative annual donations — a 15-percentage-point cliff. Two practical implications:
- Annual giving under $200 always gets the lower rate. If you donate $150 a year, you receive only the 14% first-tier federal credit (plus the lower-tier provincial rate), year after year.
- Bunching small donations into one year crosses the threshold once instead of repeatedly. Donating $150 in three consecutive years ($450 total) pays the 14% first-$200 penalty three times. Bunching all $450 into one year pays it once and gets 29% federal on the remaining $250.
For multi-year planning, see why the first $200 of donations is taxed differently.
2026 Ontario donation tax credit
| Donation portion | 2026 Ontario rate |
|---|---|
| First $200 of total annual donations | 5.05% |
| Above $200 | 11.16% |
Ontario does not have a high-income premium on the donation credit — the 11.16% rate applies above $200 regardless of income level.
| Donation portion | 2026 combined federal + Ontario |
|---|---|
| First $200 (Ontario, any income) | 14% + 5.05% = 19.05% |
| Above $200 (Ontario, income < $258,482) | 29% + 11.16% = 40.16% |
| Above $200 (Ontario, income ≥ $258,482, against top-bracket income) | 33% + 11.16% = 44.16% |
Other provincial donation tax credit rates (2026)
Every province and territory adds its own donation tax credit on top of the federal credit. Most use the same two-tier structure:
| Province / territory | First $200 | Above $200 |
|---|---|---|
| Ontario | 5.05% | 11.16% |
| Quebec | 20.00% | 24.00% |
| British Columbia | 5.06% | 16.80% |
| Alberta | 10.00% | 21.00% |
| Saskatchewan | 10.50% | 14.50% |
| Manitoba | 10.80% | 17.40% |
| Nova Scotia | 8.79% | 21.00% |
| New Brunswick | 9.40% | 19.50% |
| Newfoundland and Labrador | 8.70% | 21.80% |
| Prince Edward Island | 9.65% | 18.75% |
| Yukon | 6.40% | 12.80% |
| Northwest Territories | 5.90% | 14.05% |
| Nunavut | 4.00% | 11.50% |
Quebec, BC, and Yukon also have higher provincial credit rates that apply at very high-income brackets. For exact 2026 figures, use the charitable donation tax credit calculator.
The high-income 33% federal rate
Since 2016, Canada has applied a 33% federal credit to the portion of donations above $200 that can be claimed against income in the top federal bracket. In 2026 the top bracket starts at $258,482. The 33% rate is the lesser of:
- The donation amount above $200, and
- The donor’s taxable income above $258,482.
Example. A donor with $300,000 of taxable income in 2026 donates $5,000. They have $4,800 above the $200 threshold and $41,518 of income above the top bracket. The full $4,800 above $200 qualifies for the 33% federal rate (because $4,800 < $41,518). For a donor with income just barely above $258,482, only the “just barely” portion of the donation qualifies for 33%.
Worked examples (Ontario, 2026)
Example 1: $500 donation, Ontario taxpayer with $80,000 income.
- First $200: $200 × (14% + 5.05%) = $200 × 19.05% = $38.10
- Above $200: $300 × (29% + 11.16%) = $300 × 40.16% = $120.48
- Total combined credit: $158.58 (31.7% of $500 donation)
Example 2: $1,000 donation, Ontario taxpayer with $80,000 income.
- First $200: $200 × 19.05% = $38.10
- Above $200: $800 × 40.16% = $321.28
- Total combined credit: $359.38 (35.9% of $1,000 donation)
Example 3: $5,000 donation, Ontario taxpayer with $300,000 income.
- First $200: $200 × 19.05% = $38.10
- Above $200 at 33% federal + 11.16% Ontario: $4,800 × 44.16% = $2,119.68
- Total combined credit: $2,157.78 (43.2% of $5,000 donation)
Combining donations with a spouse
CRA lets either spouse claim all of a couple’s donations on their own return, regardless of who actually wrote the cheque. Pooling on one return is almost always better because:
- The 14% first-$200 federal rate (and 5.05% Ontario first-$200 rate) is paid only once, not twice.
- Higher provincial rates kick in faster on the combined total.
- The 33% federal premium is more likely to apply if one spouse has high income.
Worked example. An Ontario couple each donates $300 ($600 total). Splitting on separate returns: 2 × ($200 × 19.05% + $100 × 40.16%) = 2 × ($38.10 + $40.16) = $156.52 combined credit. Pooling on one return: $200 × 19.05% + $400 × 40.16% = $38.10 + $160.64 = $198.74 — $42.22 better. See can spouses combine charitable donations? for the mechanic.
5-year carry-forward
If you cannot use the full credit in the year of donation (because your tax owing is too low, or your donation exceeds the 75%-of-net-income annual claim cap), you can carry the unused amount forward to any of the next 5 tax years.
Example. Akira donates $25,000 in 2026 with $40,000 of net income. The 75%-of-net-income cap limits the 2026 claim to $30,000 (well above the donation), so the full $25,000 is claimable in 2026. But if Akira owes only $3,500 in federal tax that year, the non-refundable credit can only reduce tax to zero — about $3,500 of the credit value is “wasted” in 2026. The unused portion of the donation carries forward to 2027 through 2031. Akira can choose which year to claim the carry-forward in to maximize the credit.
The carry-forward is automatic on Schedule 9 of the T1 but you must keep the original receipts and track the unused amount each year.
75%-of-net-income annual cap
Annual donation claims are capped at 75% of net income on line 23600 of the T1 (with carry-forward of the excess). In the year of death, the cap is 100% of net income and can be applied to the prior year as well. Donations of certified ecological land and certified cultural property are not subject to the 75% limit.
What donations qualify
- Cash, cheque, or electronic-transfer donations to registered Canadian charities with a CRA registration number (search the CRA charity listings).
- Cash donations to registered Canadian amateur athletic associations.
- Cash donations to certain foreign universities with prescribed status.
- In-kind donations of publicly-traded securities (stocks, bonds, ETFs, mutual fund units listed on a designated exchange) — capital gains exempt; receive credit on FMV. See donating stocks to charity.
- Donations of life insurance, RRSP/RRIF beneficiary designations, real property, art, ecological land — specific rules apply (CRA Guide P113).
Donations of services (volunteer time) and gifts to non-registered organizations are not eligible.
Donation receipt requirements
Every donation you claim needs an official donation receipt from the registered charity. The receipt must include:
- The charity’s name, address, and CRA registration number.
- The unique receipt number.
- The date the donation was received.
- The eligible amount of the gift (donation amount minus the value of any benefit received).
- The donor’s name and address.
- The signature of an authorized representative.
Keep receipts for at least 6 years in case CRA requests them. Most major charities now issue electronic receipts via email; CRA accepts these.
Common mistakes
- Splitting donations between spouses on separate returns. Almost always worse than pooling on one return because the first-$200 rate hits twice.
- Donating cash when you have appreciated stocks. Donating the stock in-kind eliminates the capital gain and still gets you the credit on FMV. Donating cash means selling first, paying capital gains tax, then donating the after-tax amount.
- Donating to a foreign charity not on the qualified-donee list. No credit. Verify on CRA’s charity listings before donating internationally.
- Giving up on a large donation that exceeds 75% of net income. The excess carries forward five years — you don’t lose the credit, just the timing.
- Forgetting the December 31 receipt deadline. The donation must be received by the charity by December 31 to count for that tax year. Late-December electronic donations sometimes process in January — confirm the receipt date.
Frequently asked questions
What is the charitable donation tax credit in 2026?
14% federal on the first $200 of donations (matching the lowest 2026 federal personal rate under Bill C-4), 29% above $200, or 33% above $200 for amounts that fall against income in the top federal bracket ($258,482+). Plus a provincial credit on the same two-tier structure.
How does the first $200 rule work?
The 14% federal rate applies to the cumulative first $200 of annual donations. Once you cross $200 in total annual giving, every additional dollar gets the higher 29% (or 33%) federal rate. The threshold resets January 1 each year.
What is the combined federal + Ontario rate above $200?
29% federal + 11.16% Ontario = 40.16% on amounts above $200 (assuming taxable income below $258,482). 33% + 11.16% = 44.16% on amounts above $200 if the income falls in the top federal bracket.
Can my spouse and I combine donations?
Yes — either spouse can claim all of a couple’s donations on their own return. Pooling is almost always better than splitting because the first-$200 rate is paid only once.
How long can unused donation credits carry forward?
Up to 5 tax years. Track the unused amount and claim it in a future year with higher tax owing.