2012 Ontario Charitable Tax Credits
Your donations help others...The tax savings help you!
- Donations to charity are deducted directly from taxes (both federal and provincial) in the form of a credit applied directly against taxes payable.
- The provincial tax credit is calculated separately.
- Donations of equal size are treated equally regardless of personal income.
Your charitable tax credit reduces the amount of federal and provincial income tax that you may pay each year.
- The system rewards extra giving - the more you give, the larger your tax credit and the less income tax you pay.
On charitable donations totalling $500 for the year, the calculation is:
Federal Tax Credit (FTC) on the first $200.00
calculated at 15% 30.00(A)
on the remaining 300.00
calculated at 29% 87.00(B)
Total Federal Tax Credit (A + B) $117.00(C)
Provincial Tax Credit (PTC) on the first $200.00
Calculated at 5.05% 10.10(D)
On the remaining 300.00
Calculated at 11.16% 33.48(E)
Total Provincial Tax Credit (D + E) $43.58(F)
Total FTC + PTC (C + F) $160.58
The amount you would deduct from your taxes payable is $160.58.
Your charitable donation off $500 actually costs you $339.42.
*the above-mentioned rates are based on taxation information obtained to date and may change without notice*