Charitable Donation Tax Credit (2026)

Donations to registered Canadian charities qualify for a non-refundable tax credit. The federal credit is 15% on the first $200 of donations and 29% on amounts above $200 (33% if the donor’s income falls in the top federal bracket above $253,414). Provincial credits apply on top, bringing combined donation tax savings to approximately 40% to 53% of donations above $200, depending on province and income.

2026 federal credit rates

The 33% top-bracket rate applies only to the portion of donations that effectively offsets income that would have been taxed at the top 33% rate. For most taxpayers below $253,414 of income, the 29% federal rate applies on amounts above $200.

Worked example

An Ontario resident with $90,000 of taxable income donates $1,000 to a registered charity. Combined federal + Ontario credit:

• First $200 federal: $200 × 15% = $30
• Remaining $800 federal: $800 × 29% = $232
• First $200 Ontario: $200 × 5.05% = $10.10
• Remaining $800 Ontario: $800 × 11.16% = $89.28
• Total credit: $361.38 (36% effective)

The donation cost the donor $1,000 cash but reduced tax by $361.38, so the net cost was $638.62. Effective tax savings on donations above $200 typically range from 36% (lower-income provinces) to 53% (top earners in Quebec or Nova Scotia).

Claim the threshold once per couple

Spouses can pool donations on one return to apply the $200 threshold only once. The strategy: combine all family donations on whichever spouse will use the credit most efficiently. The CRA does not require the donor named on the receipt to be the claimant — donations made by either spouse can be claimed by either spouse (or split).

Carry forward

Charitable donations can be carried forward up to 5 years. A donation made in 2026 that is not claimed on the 2026 return can be claimed on any return from 2027 to 2031 (or 2032 if filed late). Donating in a year and carrying forward to a higher-income year typically produces a larger credit.

Annual donation limit

Eligible donations claimed in a year cannot exceed 75% of net income (100% in the year of death and the prior year). Donations of certified ecological gifts and certain Canadian cultural property have no annual limit. Excess donations beyond the 75% limit can be carried forward.

Eligible donees

Donations must be made to registered Canadian charities, registered Canadian amateur athletic associations, certain Canadian universities outside Canada, the United Nations and its agencies, and certain other prescribed organizations. The CRA’s online charity listing confirms registration status. Donations to non-registered organizations (international charities not registered in Canada, political parties, GoFundMe campaigns to individuals) do not qualify.

Donations of securities (in-kind)

Donating publicly traded securities directly to a charity (rather than selling and donating cash) eliminates the capital gains tax that would otherwise apply on the sale. The donor receives a charitable receipt for the fair market value of the securities and avoids capital gains tax on any unrealized gain. This is one of the most tax-efficient ways to make a large charitable gift.

Worked example: A donor with $10,000 of stock that cost $6,000 considering a $10,000 charitable donation. Selling and donating cash: capital gain of $4,000, taxable amount $2,000 at 50% inclusion, tax of $660 (at 33% combined marginal rate). Donating in-kind: zero capital gains tax, full $10,000 charitable receipt. The donor saves $660 by donating in-kind.

Receipts and substantiation

The charity must issue an official donation receipt for any donation claimed. The receipt must include the charity’s BN registration number, the date of donation, the cash amount or fair market value of property, the name and address of the donor, and the eligible amount. CRA can disallow claims without proper receipts.