Charitable donation tax credit rates

Example 1 – taxable income up to $200,000

A donor in Alberta with a taxable income of $40,000 makes a donation of $700 in 2016. Their tax credit is calculated as the total of:

Federal charitable donation tax credit

• $30 (15% on the first $200)
• $145 (29% on the remaining $500)

      $175 ($30 + $145) is their total federal tax credit.

Provincial charitable donation tax credit

• $20 (10% on the first $200)
• $105 (21% on the remaining $500)

      $125 ($20 + $105) is their total provincial tax credit.                                                               

$300 ($175 + $125) is their total charitable donation tax credit for 2016.

Example 2 - taxable income over $200,000

A donor in Alberta with taxable income of $215,000 makes a donation of $20,000 in 2016. Their tax credit is calculated as the total of:

Federal charitable donation tax credit

• $30 (15% on the first $200)
• $4,950 (33% of $15,000) which is the lesser of:
  • the amount by which their total donation exceed $200 ($19,800)
  • the amount by which their taxable income exceeds $200,000 ($15,000)
• $1,392 (29% of $4,800) which is the amount of their total donations for the year over $200 that is not eligible for the 33% rate above ($19,800 - $15,000)

      $6,372 ($30 + $4,950 + $1,392) is their total federal tax credit.

Provincial charitable donation tax credit

• $20 (10% on the first $200)
• $4,158 (21% on the remaining $19,800)

      $4,178 ($20 + $4,158) is their total provincial tax credit.                                                        

$10,550 ($6,372 + $4,178) is their total charitable donation tax credit for 2016.