Canada’s tax incentives for charitable donations are designed to make it easier for taxpayers to support their favourite charities. The tax savings, starting in 2016, may be worth more to those taxpayers in the new top tax bracket (with income over $200,000*).
The after-tax cost for a $1,000 cash donation in 2016 can range from $430 to $523 for taxpayers with income exceeding $200,000, and from $470 to $563 for taxpayer’s with income under $200,000, depending on your province of residence. Charitable gifts need to be made by 31 December 2016 to claim the donation credit on a 2016 tax return.
*$ = Canadian dollar
The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.