Tax Savings Calculator

How much would you have to donate in order to eliminate your capital gains tax? Use our Tax Savings Calculator to find out. 

How much would I have to donate in order to eliminate my Capital Gains Tax?

Step 1. Enter the investment information in the boxes below and press the Calculate button to determine your Capital Gain and Income Tax Payable.

Market Value of Security ($):
Adjusted Cost Base ($):
Capital Gain ($): 25000.00
   
Taxable Gain ($): 12500.00
Investor Tax Rate (%):
Income Tax Payable ($): 5625.00

Step 2. Now enter an amount for Value of Donation below and press the Calculate button to see how much you would need to donate in order to eliminate any Tax Payable. Repeat Step 2 as necessary.

Value of Donation ($):
Province / territory of residence:
Taxable Gain (from Securities Sold) $ 11250.00
Investor Tax Rate 45%
Income Tax Payable $ 5062.50
TAX SAVINGS FROM CHARITABLE GIFT* $ 2250.00
NET TAX PAYABLE (SAVINGS) $ (2812.50)

* Donation tax credit is calculated based on the combined federal and provincial/territorial tax rates effective July 1, 2023.

Results do not include the additional 4% federal tax credit for donations over $200 to the extent taxable income is subject to the highest federal income tax rate.

In addition, the results do not include the additional 3.7% (BC) and 1.75% (Quebec) tax credit for donations over $200 to the extent taxable income is subject to the highest tax rate in these provinces respectively.

There may be additional tax savings for individuals residing in Ontario and PEI due to reduction in surtaxes. These additional savings are not reflected in the results above.

Alternatively Minimum Tax may apply to specific scenarios which are not accounted for in this illustration.

Note: The annual limit for claims in respect of charitable donations is generally 75% of net income for the year. This limit is increased to 100% in the year of death or the year prior. 

The information contained herein is based on current tax legislation and is intended for illustration purposes only. While care is taken in the preparation of this document, no warranty is made as to the accuracy or applicability in any particular case.

The information provided is general in nature and is intended to highlight various tax planning issues. This information should not be relied upon or construed as legal or tax advice. Readers should consult with their advisors, lawyer and tax professionals for advice before employing any of these strategies.