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Charitable donation tax credit in Ontario: how it works

Donations to a registered charity or another qualified donee can reduce your Ontario and federal tax through a non-refundable credit. The credit is calculated on Schedule 9 and Form ON428, it is higher on gifts above $200, and you do not have to claim a gift in the year you make it. This article explains how the credit is calculated, what a valid receipt looks like, how spouses can combine claims, and how the 75% limit and five-year carry-forward work.

Sora Accounting & Tax · General information · Editorial policy
Updated · 5 min read

Gifts above $200 earn a higher credit rate

Illustration comparing the lower credit rate on the first $200 of donations with the higher rate on amounts above it, backed by an official receipt.

Visual labels: First $200: lower rate; Above $200: higher rate; Official receipt required.

What to take away

  • The first $200 of claimed gifts earns a lower credit rate; the rest earns more, and the $200 applies once per return.
  • Only gifts to a qualified donee with an official receipt count, and you can carry unused amounts forward up to five years.
  • Either spouse or partner can claim all the gifts, so compare both returns before choosing.

What the credit is and who can claim it

A donation to a registered charity or another qualified donee earns a non-refundable tax credit. It reduces the tax you owe on your return, but it does not produce a refund by itself if you owe no tax. You claim it on line 34900 of your federal return, using Schedule 9, and the Ontario portion flows through Form ON428.

To claim, you or your spouse or common-law partner must have made a gift of money or other property, the recipient must be a qualified donee, the amount must not already have been claimed on another return, and you must hold an official donation receipt. A gift must generally be voluntary, and any benefit you receive in return reduces the amount you can claim.

Check that the organization is a qualified donee

Registered charities are the most common qualified donees, but the CRA’s list also includes registered journalism organizations, Canadian amateur athletic associations, registered municipalities, and the Government of Canada, provinces and territories. Non-profit organizations are different: unlike qualified donees, they cannot issue official donation receipts.

Before giving, search the CRA’s list of charities and other qualified donees rather than relying on the name or on a receipt-looking acknowledgement. Event admission or a thank-you gift can reduce the amount that counts, and without a valid receipt there is nothing to claim. If the receipt amount looks wrong or a receipt is lost, the organization that issued it can correct or replace it.

How the federal and Ontario credit rates work

The credit is tiered. On the 2025 Schedule 9, the first $200 of your total claimed gifts earns a 14.5% federal credit. Amounts above $200 earn 29%, and the portion of gifts that falls within the part of your taxable income above the top-bracket threshold ($253,414 on that form) earns 33%. The $200 is calculated on the total you claim for the year, not per charity.

Ontario uses two rates on the 2025 Form ON428: 5.05% on the first $200 and 11.16% on the balance. These are the figures confirmed for the 2025 tax year. CRA’s 2026 rate table shows the lowest federal bracket rate falling to 14%, so do not assume the 2026 first-$200 rates match 2025. Check the 2026 Schedule 9 and ON428 when they are published, before you rely on any estimate.

An illustrative example

Suppose you claim $1,000 of donations on a 2025 return and your income does not reach the 33% tier. The federal credit is $200 at 14.5% ($29) plus $800 at 29% ($232), or $261. The Ontario credit is $200 at 5.05% ($10.10) plus $800 at 11.16% ($89.28), or about $99.38. Together the credits are about $360, or roughly 36% of the gift.

This example is illustrative and uses 2025 form rates. The credit reduces tax payable and other credits are applied in a set order, so your actual benefit depends on your whole return. Ontario surtax and other provincial calculations are outside this example.

Official receipts and the eligible amount

The eligible amount is usually shown on the receipt. It is the fair market value of the gift minus any advantage you received. CRA’s own example: a $1,000 gift to a registered charity that comes with three $50 show tickets has an eligible amount of $850.

Qualified donees are not required to issue a receipt, so ask. They may issue receipts through the year or one cumulative receipt for cash gifts, and you can generally expect it by February 28 of the next year. Gifts of property other than cash are valued at fair market value when given, and each non-cash gift needs its own receipt. Keep every receipt; CRA does not ask for them with a filed return but may ask to see them later.

Combining receipts with a spouse or partner

Either spouse or common-law partner can claim gifts made by either of them. CRA’s steps say to include the eligible amount of all donations that you or your partner want to claim on your return. The lower-rate tier applies once per return, so putting all gifts on one return generally avoids using the first $200 twice.

Which return is better depends on income, other credits and whether one person is near the 75% limit. Run both versions rather than defaulting to the higher earner. A common error is to split receipts across both returns in a way that nobody tracks, then claim a receipt twice. Keep a simple list of which receipt went on which return.

Limits, carry-forward and timing

In general you can claim up to 75% of your net income (line 23600) for the year. Some gifts of capital property and gifts in the year of death have a higher limit, and gifts of ecologically sensitive land carry forward 10 years rather than 5.

You do not have to claim in the year you give. Unused eligible amounts can be carried forward for up to five years, but each amount can be claimed only once, and carried-forward gifts must be used before current-year gifts. Claiming in a later year can make sense if your income will be higher then, or if you would otherwise spread small amounts across years. Schedule 9 also notes that if you already claimed a gift made between January 1 and February 28 on your prior-year return, you cannot claim it again.

What to bring and when to ask for help

Bring official receipts for each year you want to claim, a list of carry-forward amounts from earlier returns (your prior returns are the place to trace them), and notes on anything you received in return. For gifts of shares, property or art, ask about capital gains and valuation before you give, not after.

Most routine cash donations can be handled by the Schedule 9 steps. If you give large amounts, give securities, are deciding between spouses, or have a carry-forward you cannot trace, a personal tax review is worth the time. Sora’s personal tax service can help organize the receipts and compare the options; no particular credit can be promised.

Sources & editorial notes

Sources checked October 24, 2026. The examples are illustrative and provide general information. Discuss how the guidance applies to your circumstances with your accountant.

Rules and guidance can change. Use the current official source and confirm the treatment for your facts. To flag an error, contact Sora.