Tax benefits of giving
In Canada, governments encourage everyone to give by providing important tax benefits in the form of tax credits.
At the federal level, tax credits for charitable contributions are:
- 15% for gifts of $200 or less
- 29% for any portion of a gift over $200
For Quebec residents, because of the impact of the tax abatement, these credits become:
- 12.525% for gifts of $200 or less
- 24.26% for any portion of a gift over $200
At the provincial level, tax credits for charitable contributions are:
- 20% for gifts of $200 or less
- 24% for any portion of a gift over $200
The maximum amount admissible for tax credits is 75% of the giver’s net income for the year the gift is made in. Any gift over the 75% maximum can be carried forward and claimed over the next five years.
An act of great generosity. An interesting tax benefit.
