When my clients ask about tax deductions, political donations usually aren’t top of mind—but given the current state of politics, this is more of a hot topic. In Canada, the tax treatment of political donations can actually be more favourable than that of charitable donations. In this quick video, I provide a high level view of how deducting political donations in Canada works, what thresholds and limitations to look out for, and how the federal and provincial rules differ. Whether you’ve already contributed or are planning to, understanding political donations could mean more money back in your pocket.
Video Transcript: Deducting political donations in Canada
With the federal election expected, or perhaps by the time you’re looking at this has already occurred, various provincial elections in process have already occurred. I thought we should talk about political donations and the tax implications to those.
This may come as a huge surprise to you, but the politicians who are in charge of the tax authorities made it such that claiming a political donation for tax purposes is potentially far better than making a donation simply to the church, Cancer Society, heart and stroke, etc.
Watch out in terms of who is making the contribution. From a federal perspective, it has to be an individual. Provincially, watch whose name is on the receipt, as provinces differ with respect to who is allowed to make claims, how they’re divided, etc.
I’m George Dube, saving the world from tax, one bow tie at a time®.
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Resources
For additional resources related to how to maximize tax deductions, see:
- 2025 tax season tips: How to save more this year
- Claiming automobile expenses personally vs corporately
- Deducting interest expenses: The most missed tax deduction
- Elections Canada
More questions?
Still have questions? I want to help you Do wonderful things®, so please contact me today.
Remember – circumstances are unique! This information is summary in nature. Seek out advice from your tax advisor about your specific situation.
