Calculating Your Pledge
The minimum donation amount is $500 (net cost of $50 to the donor after a 90% tax credit). Individuals can donate up to the amount that you and your spouse will pay in PA Personal Income Tax in 2023. Businesses can donate up to the total amount of their state tax burden. To calculate your maximum pledge amount, you may do one of the following:
1. Ask your accountant.
2. Check your pay stub if you are on a salary and project what you will have paid by the end of the year.
3. Estimate what your gross income will be for the year and multiply it by 3.07% (the tax rate)
4. Look at your last year’s PA 40 return and make an estimate based on that figure. If you and your spouse file jointly, you may add the two together.
5. Take into account any tax forgiveness you may have received in the past.
For example: If you paid $4000 in state tax last year, you could donate up to $4000 to Penngift and receive a state tax credit of $3600 AND claim $4000 donation as a charitable donation on your federal tax return.