Political Tax Credit

Every resident of Ontario who makes one or more donations to a political party must receive Official Receipts for all donations he or she made during the calendar year. Receipts must be sent for donations made during an election or by-election campaign before the end of the campaign period. (Not all donations made during an election or by-election campaign, such as monthly donations, need to be classified as campaign donations.) Official Receipts qualify the donor to a refundable income tax credit according to the following table;

Donation	For 2022	Tax Credit	Net Cost		Donation (for 2021)	Tax Credit	Net Cost
75% of first	$437	$327.75	$109.25		75% of first $427	$320.25	$106.75
50% of next	$1,020	$510.00	$510.00		50% of next $996	$498.00	$498.00
33.33% of next	$1,868	$622.60	$1,245.40		Max donation of $3,238	$605.00	$1,210
Max Donation allowed	$3,325	$1,460.35	$1,864.65		Max Donation allowed = $3,300

The Elections Finances Act was amended effective January 1, 2017 to limit contributions to a Political Party to $1200 per year. This amount and the tax credit factors are increased every year based on the Consumer Price Index. Corporations and Unions were prohibited from making donations to political parties. 

Further changes to the Act were made in Bill 57 and enacted on December 6, 2018.  Effective in 2019 the contribution limit was increased to $1.600, and will be increased by $25 each following year. 

Bill 254, enacted on April 19, 2021 further increased the maximum political donation to $3,300 for all contributions to a Party and its CAs.