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Donation Tax Credit Rates 2016

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Filing Your Return  ->  Donations Tax Credit  ->  Donation Tax Credit Rates  -> 2016 Rates

2016 Donation Tax Credit Rates

  First
$200
Amount
over
$200
Highest
Tax Credit
Rate
Tax Credit
for donation
of $1,000
Combined
Fed/Prov
Tax Credit
for donation
of $1,000
Empl income
required to
completely
utilize 
tax credit
Combined
Fed/Prov
Super Credit
for donation
of $1,000
Empl income
required to
completely
utilize 
super credit
Federal (5) 15.00% 29.00% 33.00% $262.00 n/a   n/a  
Fed-super credit 40.00% 54.00% n/a 512.00 n/a   n/a  
AB (3) 10.00% 21.00% n/a 188.00 $450.00 $21,646 $700.00 $21,646
BC (5) 5.06% 14.70% n/a 127.72 389.72 15,257 639.72 17,046
MB 10.80% 17.40% n/a 160.80 422.80 15,257 672.80 17,046
NB (1) 9.68% 17.95% n/a 162.96 424.96 15,257 674.96 17,046
NL (6) 8.20% 16.80% n/a 150.80 412.80 15,257 662.80 17,046
NS 8.79% 21.00% n/a 185.58 447.58 15,257 697.58 17,046
NT 5.90% 14.05% n/a 124.20 386.20 17,205 636.20 17,205
NU 4.00% 11.50% n/a 100.00 362.00 16,420 612.00 17,046
ON (2) 5.05% 11.16% n/a 99.38 361.38 15,257 611.38 17,046
PE 9.80% 16.70% n/a 153.20 415.20 15,257 665.20 17,046
QC (4) 20.00% 24.00% n/a 232.00 494.00 16,908 744.00 17,135
QC federal tax abatement reduction 16.5% -43.23   -84.48  
SK 11.00% 15.00% n/a 142.00 404.00 18,214 654.00 17,985
YT 6.40% 12.80% n/a 115.20 377.20 15,324 627.20 17,046

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 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 2016, not to donations carried forward from 2015 and earlier years.  The tax credits in each column assume that the highest tax rate does not apply.

The Federal First-Time Donor's Super Credit (FDSC) was introduced in the 2013 Budget, and is only available in certain circumstances. It will be available only for tax years 2013 to 2017.  See below for more information regarding carried-forward donations and the Super Credit.

(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.
(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.
(3) Alberta's highest income tax rate is 15%, but it sets a rate of 21% for donations over $200.
(4) Quebec does not use the lowest tax rate of 16% for the first $200 of donations, but the middle tax rate of 20%.  Although the highest tax rate is 25.75% starting 2013, the rate for donations in excess of $200 remains at 24%, as per the 2013 Budget, until 2016.  The $262 federal donation tax credit and $512 federal super credit for Quebec taxpayers are, 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 would provide, starting with the 2017 taxation year, a 25.75% 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 is eliminated for Quebec for the 2016 and later taxation years.
(5) The federal government introduced legislative proposals on Dec 7, 2015 that would 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) Newfoundland & Labrador personal income tax rates were increased as per their 2016 budget.

Our table above shows how much employment income is needed in order to fully utilize the regular tax credit or super tax credit for $1,000 of donations.  This is if the taxpayer has only the basic personal amount tax credit, employment amount tax credit, and tax credits for employment insurance premiums and CPP or QPP contributions.  When the taxpayer has other tax credits such as working income tax benefit, disability tax credit, age amount credit, dividend tax credit, dependent children tax credit, or any other tax credits, a higher level of income will be required to fully utilize the tax credit for $1,000 of donations.  Our Tax Calculators include a calculation for the super tax credit, and indicate if the donations tax credit is not fully utilized.

Donations Carried Forward

Note that donations can be carried forward for up to 5 years, but the First-time Donor Super Credit will not apply in a subsequent year, unless none of the donation has already been claimed.   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: September 20, 2017

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