Alberta has one of the highest charitable tax credits in Canada. For every dollar you donate over $200 total in 2011, you can receive a non-refundable tax credit of 50%.

That can reduce your taxable income, meaning money off your tax bill - and more in your pocket - while you help your favourite good cause.

Example

Here's how to calculate your charitable tax credit with total annual donations of $500. Detailed instructions are provided with your income tax return forms.

1. Gather all your official charitable donation tax receipts and add them up (i.e. $100 to a youth shelter + $50 to a local food bank + $350 to a health organization = $500 in total annual donations).
    
2. Provincial tax credit:
   1. On the first $200, the provincial tax credit rate is 10%, yielding a tax credit of $20.
   2. On the amount over $200, you receive a provincial tax credit of 21% (see note below). This would yield a tax credit of $63.
   3. When you add $20 + $63, your total provincial charitable tax credit is $83.
    
3. Federal tax credit:
   1. On the first $200, the federal tax credit is 15%, yielding a federal tax credit of $30.
   2. On the amount over $200, you receive a federal tax credit of 29%. This would yield a tax credit of $87.
   3. When you add $30 + $87, your total federal charitable tax credit is $117.
    
4. Your total combined provincial and federal tax credit is $200 ($83 + $117).

Effective January 2007, the Alberta tax credit for eligible charitable donations that exceed $200 in a tax year has increased to 21% of the amount donated. When added to the federal tax credit of 29%, Albertans receive a 50% tax credit on those donations - one of the highest charitable tax credits in Canada. The first $200 in eligible charitable donations made in a tax year continues to receive an Alberta tax credit of 10% and a federal tax credit of 15%.