Tax Benefits

Example - $2,000 Donation

For an individual having less than $205,842 in taxable income, the tax credit would be as follows:

$200.00 @ 25.8% = $51.60

$1,800.00 @ 46.4%* = $835.20   

Total tax credit** = $886.80

*The rate of 46.4% applies to your donations over $200.00 regardless of your tax bracket up to the $205,842 bracket as noted in the following example.

**This tax credit is deducted directly off of your taxes payable for the year.

Example 2 - $20,000 Donation

If your taxable income is above $205,842.00, the amount of income above $205,842.00 can earn a higher tax credit after deducting the first $200.00 of donations. For an individual donating $20,000 and having over $210,000 in taxable income, the tax credit would be as follows:

$200.00 @ 25.8% = $51.60

$9,800.00 @ 46.4% = $4,547.20

$10,000.00 @ 50.4% = $5,040.00

Total tax credit** = $9,638.80

*This tax credit is deducted directly off of your taxes payable for the year.

Notes on cash donations: Donations used in a single year are limited to 75% of your net income. Donations can be carried forward for up to five years.

The tax rates in these examples are calculated using Manitoba provincial tax rates. These rates may differ if you pay taxes as a resident of a different province.