Donations Savings Calculator

© 2020 Walter Harder & Associates



Calculator
Province of Residence Tax Year:   
Taxable Income   First Time Donor (cash only 2013 to 2017)
Charitable Donation Taxable Capital Gain on gift    
Taxes Payable: Federal Provincial Total
With no donation      
With your donation      
Savings      
Cost of donation  
 
Help

Take Home Pay Calculator - Help

Using this Calculator

Use this calculator to estimate the income tax savings (and net cost) of making a charitable donation

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Province of Residence

Select the taxpayer's province of residence. Provincial taxes and savings will be calculated based on the province selected.

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Tax Year

Select the taxation year. Income taxes payable are based on the selected year.

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Taxable Income

Enter the taxpayer's taxable income. This amount will be used to determine the income taxes payable before and after the gift.

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Charitable Donation

Enter the amount of the donation. Donations generate non-refundable credits. On the first $100 of donations, the credit is at the lowest tax rate (federally and provincially). On the remainder of donations, the credit is generally at the highest tax rate (Alberta provides a higher rate).

Where the donation does not save any taxes because the taxpayer's taxable income is too small, they can be saved for up to five years to be claimed in a year when there are more taxes payable and thus generate more benefit.

Donations are limited to 75% of the taxpayer's net income in most cases. A warning will be posted if the donation is more than 75% of taxable income.

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Capital Gain on Gift

Where the gift is of publicly traded shares and the capital gain on the gift is already included in taxable income, enter the gain here as gains on the donation of publicly traded shares is zero. The taxable income will be adjusted to remove the gain.

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Results

The table below the inputs shows the taxes payable (based on taxable income) at the federal and provincial level, before and after the donation. No credits are assumed other than the basic personal amount. Additional credits will reduce taxes both before and after the donation so they will not affect the savings due to the donation.

The tax savings are shown at each level as well as the net cost of the gift based on the actual gift less the taxes saved.

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Tips

Use the button to clear the personal information in order to start again.

Use the button to print the contents of the calculator.

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