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What personal (not corporate) tax examples like the quote underneath appertain to Ontarians? Please focus on examples that can appertain to as many Ontarians as possible, thus don't focus on high income tax brackets.

But there are times when a tax deduction could put you in a lower bracket and also allow you to get a larger tax credit for example. That would be especially worthwhile if your money went to something of value, like an IRA. Or maybe you were going to give $500 to charity, but then you do the math and realize that if you give $1000 instead, you'll get an extra $250 back on your taxes. That extra $500 donation only really costs you $250, so it's a tax write off, but it didn't really save you anything. That's an extreme example, but with a bracket, a credit or two and an itemized deduction, you might find a sweet spot.

Please disregard examples beneath in which the purchase is necessary, like laser eye surgery.

Health expenses are deductible at a certain point. In a year when you've already had significant expenses, you may realize that you'll be able to deduct a portion on your next tax return. If your marginal tax rate was 15%, you could opt to get that laser eye surgery you've been wanting this year. It would cost you at least 15% less than if you waited until the next year. So it's a write-off, but you still have to pay the other 85%.

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    I'm not sure what you're looking for - the logic applies to any deductible expense, and the larger the bracket, the larger the effect. There's nothing special about Ontario that I know of that make this specific to that jurisdiction.
    – D Stanley
    Aug 20, 2019 at 21:28
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    You understand that even if you're in a higher tax bracket you're still netting more money right? Your marginal tax rate only applies to the amount of money you're making ABOVE the bracket. Your question implies that you're trying to get to a lower tax bracket by donating to make more money which doesn't make sense.
    – Dugan
    Sep 16, 2019 at 22:15
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    While some concepts may transfer, taking a US tax article and assuming it applies to Canada is bound to lead you into trouble. Enough is different the article you have is irrelevant, and the question is therefore overly broad and not very useful.
    – Grade 'Eh' Bacon
    Sep 17, 2019 at 13:47

1 Answer 1

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Are you just looking for ways to reduce your income tax without spending money? If so you could:

  • Max out your RRSP contribution every year.
  • Donate a gift of certified cultural property (like artwork) to a designated institution or a public authority (like a museum).
  • Transfer any high earning investments to your TFSA.
  • Donate ecologically sensitive land to a registered conservation authority.
  • If you own your own business you could invest more in your company and write-off the added contribution.

Those are the only ones I can think of, almost everything else requires you spend more money than the discount you receive.

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