Combined Federal & Ontario Top Marginal Personal Tax Rates for 2018

Year Eligible dividend Ineligible dividend Capital gains Other income
2018 39.34% 46.84% 26.77% 53.53%
Refundable tax rates for charitable donations

For donations of $200 or less, the federal refundable tax credit is 15%. For donations more than $200, the federal refundable tax credit is representative of the top marginal tax rate of 29% even if you were not in that marginal tax bracket.

With the introduction of the top federal marginal rate of 33% on taxable income over $200,000, it was presumed that the refundable tax rate on donations more than $200 would be 33%.

The federal tax credit for donations more than $200 will only be at 33% if your taxable income is over $200,000.

Provincial refundable tax credits (that vary by province of residence) are added to the foregoing federal refundable tax credits.

Combined Federal & Ontario refundable tax credits for charitable donations:

  • First $200 of donations- 20.05%
  • Donations more than $200 where taxable income is under $200,000-40.10%
  • Donations more than $200 where taxable income is over $200,000-44.16%