Follow your heart and save money on income tax by contributing to charity this holiday season.
To encourage donations, the federal and provincial governments have provided a two-tiered credit system to add up all your donations made over the calendar year.
The amount up to $200 qualifies for a tax credit at the lowest tax rate, 25% of the total donations.
The amount over $200 qualifies for a credit at the highest tax rate, 45% of total donations.
In general, you can get a credit for all donations to registered charities, up to 75% of your net income.
Contributions can be made to many worthwhile causes and non-profit organizations, but only donations to registered charities qualify for an income tax credit.
The CRA has a handy tool, the Charitable Donation Tax Credit Calculator, which will instantly calculate your total tax credit based on the amount of the donation and your province of residence.