Refundable Tax Rates For Charitable Donations

Larry Stolberg

For donations of $200 or less, the federal refundable tax credit is 15%. For donations more than $200, the federal refundable tax credit is representative of the top marginal tax rate of 29% even if you were not in that marginal tax bracket.

With the introduction of the top federal marginal rate of 33% on taxable income over $200,000, it was presumed that the refundable tax rate on donations more than $200 would be 33%.

The federal tax credit for donations more than $200 will only be at 33% if your taxable income is over $200,000.

Provincial refundable tax credits (that vary by province of residence) are added to the foregoing federal refundable tax credits.

Combined Federal & Ontario refundable tax credits

  • First $200 of donations- 20.05%
  • Donations more than $200 where taxable income is under $200,000-40.10%
  • Donations more than $200 where taxable income is over $200,000-44.16%

Larry Stolberg, CPA, CA, CPA (South Carolina), has been practicing as a full-time tax specialist for over 30 years, in the Toronto, Ontario Canada and surrounding GTA area with primary emphasis on:

•Corporate restructuring for business owners
•Estate/succession planning
•U.S. expatriate and cross border issues
•Tax efficient planning that will achieve both your short and long term objectives

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