The Political Contribution Tax Credit encourages people to participate in the provincial political process. It is a refundable tax credit which helps to reduce or eliminate the amount of tax you owe. Excess credits may be paid as a refund after your personal income tax is assessed – even if you pay no income tax.
To be eligible for the tax credit, you must:
- be an Ontario resident on December 31 of the taxation year, and
- have made eligible contributions to a registered Ontario political party, registered constituency association or candidate in an Ontario provincial election during that year.
The Ontario Political Contribution Tax Credit cannot be claimed for contributions to municipal or federal elections.
Who can claim this tax credit?
Either you or your spouse or common-law partner may claim the tax credit. However, a contribution cannot be divided between spouses or common-law partners if only one official receipt was issued.
How do I claim this tax credit?
You can only claim this tax credit for the same year that you made the contribution. In some cases, this credit may be claimed on the return of a person who died in the tax year.
Follow these steps:
- Calculate your credit by using the chart provided in Line 3 of the Provincial Worksheet included in your personal income tax return package.
- Complete the ON479 Ontario Credits form included in your personal income tax return.
- When filing a paper copy of your personal income tax return, attach all official receipts for your political contributions. You can get them from the Chief Financial Officer of a registered party, registered constituency association or candidate in an Ontario provincial election. If you are eligible to file your income tax return electronically, you must keep all your receipts and documents for six years.
Additional information about official receipts and political contributions may be obtained from:
Elections Ontario-Election Finances Office
51 Rolark Drive
Toronto ON M1R 3B1
Telephone: 416 325-9401 or 1 866 566-9066
Facsimile: 416 325-9466
How the tax credit is calculated
The maximum yearly credit is $1,240 which is reached when you have made eligible contributions totaling $2,821. The amount of credit is calculated on the total contribution made in the year, using the following formula:
- 75% of the first $372, plus
- 50% of the next $868, plus
- 33.33% of an amount exceeding $1,240, but not more than $2,821.
You can find additional information in the forms package that you receive with your income tax return.
Corporations who wish to claim an Ontario Political Contribution Tax Credit should refer to Political Contribution Tax Credit for Corporations for information.