Important Tax Law Changes for Charitable Giving in 2026

As 2026 approaches, several federal tax changes will affect how many households—at all income levels—can claim charitable deductions. Here’s a simple overview to help you understand how your generosity may be treated under the new rules.

For High‑Net‑Worth Donors

Beginning in 2026, itemizing taxpayers will see two significant changes:

  • New 0.5% “floor” on charitable deductions: Itemizers cannot deduct the first 0.5% of their adjusted gross income (AGI).
    • Example: A household with $500,000 in AGI will not be able to deduct the first $2,500 of charitable gifts.
  • Capped value of deductions: Charitable deductions will now reduce tax liability at a maximum rate of $0.35 per dollar, even for taxpayers normally in the 37% bracket.
    • This primarily affects individuals with AGI above $626,350 and couples above $751,600.

Who is impacted: High‑income households (generally $250,000+ AGI) and many small‑business owners who itemize deductions.

For “Everyday” Donors

Good news for donors who typically take the standard deduction:

  • Starting in 2026, charitable giving can be deducted even without itemizing.
  • These deductions are capped at $1,000 for individuals and $2,000 for joint filers.
  • Some contributions—such as gifts to donor‑advised funds (DAFs) and private non‑operating foundations—do not qualify for this new deduction.

Who is impacted: Households generally earning under $250,000 that plan to take the standard deduction (projected to be $15,750 for individuals and $31,500 for joint filers in 2025).

For All Donors

Two charitable giving provisions from earlier tax code changes have now been made permanent:

  • Qualified Charitable Distributions (QCDs):
    Individuals age 70½ or older may continue making charitable gifts directly from their retirement accounts. Donors may also use a one‑time transfer of up to $54,000 to fund a split‑interest gift such as a charitable gift annuity.
  • Estate & Gift Tax Exemptions:
    The federal exemption will increase to $15 million per individual and $30 million per married couple beginning in 2026.

If you have questions about how these changes may affect your charitable goals, we encourage you to speak with your tax advisor. And as always—thank you for supporting our mission and helping ensure families in our community have the food and resources they need.