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By Jason Heath, CFP on December 10, 2025
Estimated reading time: 4 minutes

By Jason Heath, CFP on December 10, 2025
Estimated reading time: 4 minutes

Learn how charitable donations can reduce your taxes in Canada, which organizations qualify, and strategies for couples and investors to maximize tax savings.

Most people give money to charities with intentions that go beyond tax. But there are tax savings when you donate to charities. Here are some of the considerations.

Charitable donations allow a taxpayer to claim non-refundable tax credits. These credits can reduce income tax owing. They are non-refundable because you need to have tax payable to save tax when you donate to charity.

There is a federal tax credit of 15% on the first $200 of donations and up to 33% for a high-income taxpayer. There are provincial and territorial tax credits, as well. The combined credits can save over 50% tax, basically the same as a deduction that reduces taxable income for a high-income taxpayer.

There is a limit that prevents you from claiming donations that exceed 75% of your net income (100% for certified cultural property).

Sizable donations that are significant relative to income and tax payable may not save as much tax as intended, however. There is an alternative minimum tax (AMT) calculation that considers only 80% of donation tax credits and........

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