How donations can help save you money
Donations to charity reduce federal and provincial taxes in the form of a credit against taxes payable. In Ontario, individuals receive combined federal and provincial tax credits at the rate of approximately 23% on the first $200 of donations in a year, and 48% for donations in excess of $200 in a year.
The system rewards extra giving. The more you give, the larger your tax credit and the less income tax you pay.
Here are some examples of tax savings for a single taxpayer under the age of 65.
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