Charitable Giving And Taxes: What’s Changing For 2026?

Giving to charity can make you feel terrific. Whether it makes a difference on your tax return is another question.

Several new tax rules affecting charitable contributions take effect in 2026, thanks to the One Big Beautiful Bill Act (OBBBA). Some taxpayers will benefit from a new deduction, while others will face additional limits on how much they can deduct. The changes are particularly important for taxpayers who are planning year-end donations. And because the rules are different from those that applied in 2025, it’s worth understanding what’s new before you write that check—or transfer those shares of stock.

Here’s what you need to know.

Charitable Deductions For Taxpayers Who Don’t Itemize

For years, most taxpayers who claimed the standard deduction received no additional federal income tax deduction for charitable contributions. (There was a temporary exception during the pandemic, but it expired after 2021.)

That mattered more in recent years because the increase in the standard deduction (which nearly doubled in 2018) has meant fewer taxpayers can itemize their deductions. Until now, if you didn’t itemize your deductions—and only about 10% of taxpayers do—you generally couldn’t deduct charitable contributions.

That is changing. Beginning in 2026, taxpayers who don’t itemize can deduct up to $1,000 in qualifying cash contributions, or $2,000 for married couples filing jointly.

There are some restrictions. Contributions must be made in cash to eligible charitable organizations. Donations of clothing, household goods, and appreciated securities don’t qualify for this deduction. Neither do contributions to donor-advised funds or certain private foundations.

And remember, this is a deduction, not a credit. A $1,000 charitable deduction doesn’t reduce your taxes by $1,000. It reduces the amount of income subject to tax.

For example, if a $1,000 deduction offsets income taxed at 22%, the federal income tax savings would generally be $220.

The draft 2026 Form 1040 includes a separate line for the charitable contribution deduction for non-itemizers, making it easier to see how the deduction works alongside the standard deduction.

A New Floor For Taxpayers Who Itemize

Taxpayers who itemize deductions on Schedule A will also see changes. Beginning in 2026, charitable contributions are deductible only to the extent they exceed 0.5% of adjusted gross income (AGI).

This is similar to the “floor” for medical expenses—you can only claim expenses that are over the threshold. The floor applies to the total charitable contributions, not separately to each donation.

Here’s an example. Let’s suppose your AGI is $100,000. That means your 0.5% floor would be $500 ($100,000 x .005). If you donate $2,000 to qualifying charities during the year, only the excess over the floor would be deductible, before considering any other applicable limitations. In our example, that would be $1,500 ($2,000 in charitable donations less the $500 floor).

Existing percentage-of-AGI limits also continue to apply. Those limits vary depending on the type of property donated and the organization receiving the gift.

There are also special carryover rules, so don’t assume that every amount disallowed by the new floor can automatically be deducted in a future year.

New Limits For Taxpayers In The Highest Tax Bracket

Another change affects taxpayers subject to the highest federal income tax rate. Beginning in 2026, the value of itemized deductions, including charitable contributions, is effectively limited to 35 cents per deductible dollar for taxpayers in the 37% bracket.

Previously, a $10,000 deduction could potentially produce $3,700 in federal income tax savings for someone paying the 37% marginal rate. Under the new limitation, the tax benefit of that same deduction could be limited to $3,500.

The distinction is important: the law doesn’t simply cap charitable deductions at 35% of the amount donated. Instead, it limits the tax benefit of itemized deductions for taxpayers above the applicable income threshold (that limit applies to all itemized deductions for taxpayers in the top bracket).

The limitation also interacts with the new 0.5% AGI floor and other charitable contribution restrictions.

What Taxpayers Need To Know

The new rules mean that taxpayers who want a tax break for giving may want to think more carefully about how and when they give. Here are some strategies to consider.

• Donate appreciated property. Taxpayers who itemize may be able to donate appreciated securities or other property directly to qualified charities. Depending on the circumstances, they may qualify for a charitable deduction and avoid recognizing capital gain that would otherwise arise from selling the property.
• Don’t overlook qualified charitable distributions (QCDs). Taxpayers age 70½ or older may be able to make qualifying transfers directly from an IRA to charity. This strategy offers several tax advantages. For starters, you don’t have to itemize to use a QCD rollover. A QCD may satisfy all or part of a required minimum distribution (RMD) while allowing you to support a cause you care about. Finally, because QCDs are generally excluded from gross income (rather than claimed as an itemized deduction), they may also help keep your adjusted gross income (AGI) lower, which can reduce taxes on Social Security benefits, help you avoid higher Medicare premiums, and provide other tax advantages, such as eligibility for the temporary enhanced senior deduction.
• Take a look at donor-advised funds (DAFs). A DAF allows taxpayers to make a charitable contribution now and recommend grants to operating charities later. However, contributions to DAFs don’t qualify for the new non-itemizer deduction, and DAFs are subject to other special rules.

If you’re considering one of these strategies—or another charitable giving strategy, such as bunching, where you make several years’ worth of charitable contributions in a single tax year rather than spreading them out—be sure to consult your tax professional. The rules can be tricky (this is tax law, after all), and you want to get them right so you can claim the maximum benefit for your gift.

Finally, remember that these rules apply to the 2026 tax year and generally affect returns filed in 2027. They don’t retroactively change the rules for contributions made in 2025.