Charitable Giving Tax Changes in 2026: New Tax Rules for Donations

If you give to charity, you’ve probably enjoyed a little extra feel-good factor come tax time—knowing your generosity also helped lower your tax bill. But starting in 2026, the rules for deducting charitable contributions are getting an overhaul.

Whether you itemize deductions or take the standard deduction, these changes will affect how and when you benefit from your charitable giving. Here’s what’s changing, how it works, and strategies to keep your tax savings on track.

1. The Big Picture: Itemizers vs. Non-Itemizers

Before diving into the changes, here’s a quick refresher:

• Itemizers: You list out (or “itemize”) eligible deductions—such as mortgage interest, state and local taxes, and charitable donations—if they total more than your standard deduction.

• Non-itemizers: You take the standard deduction instead, which is a fixed amount that reduces your taxable income. In recent years, this has been the choice for most taxpayers because the standard deduction is relatively high.

Historically, only itemizers could deduct charitable donations—until temporary pandemic-era rules briefly allowed small above-the-line charitable deductions for non-itemizers.

Now, starting in 2026, both itemizers and non-itemizers will have updated rules for charitable deductions.

2. New Tax Rules for Donations: Itemizers in 2026

If you itemize deductions, here are the two major new tax rules for donations that kick in:

A. 0.5% “Floor” for Charitable Deductions

Beginning in 2026, you can only deduct charitable contributions once your total giving exceeds 0.5% of your Adjusted Gross Income (AGI).

Example:

• AGI = $100,000

• First $500 of donations won’t count toward your deduction.

• If you donate $2,000, only $1,500 is deductible.

This means small annual donations may no longer give you a tax benefit unless you bundle them into one tax year to cross the threshold.

B. Cap for High-Income Filers

If you’re in the 37% federal tax bracket, your deduction’s value will be capped, limiting how much it reduces your tax bill. This reduces the benefit for ultra-high earners.

3. New Tax Rules for Donations: Non-Itemizers in 2026

For the first time in years, non-itemizers will be able to deduct some charitable contributions without itemizing—but there’s a catch.

• You can take a flat charitable deduction even if you claim the standard deduction.

• The amount is expected to be modest (exact IRS limits to come), so it’s not a game-changer for large givers, but it’s a nice bonus for those who give smaller amounts and don’t itemize.

This means even if you don’t track every deductible expense, you can still get a small tax break for supporting charities.

4. Why This Matters

These changes could:

• Reduce the tax incentive for smaller donations by itemizers.

• Give non-itemizers a small new incentive to give.

• Encourage strategic timing for larger donations.

• Shift nonprofit fundraising patterns, as donors might bunch giving into certain years.

5. Smart Giving Strategies Before 2026

To make the most of your charitable giving under the new rules, consider:

• Bundling donations into one year to surpass the 0.5% AGI floor.

• Using a Donor-Advised Fund (DAF) to front-load giving and claim a larger deduction in a single year.

• Donating appreciated stocks to avoid capital gains and still get a deduction.

• Accelerating large gifts into 2025 if you’re in the 37% bracket to avoid the coming cap.

Key Takeaway

In 2026, charitable giving is still tax-smart—but the rules are shifting. Itemizers will face a 0.5% AGI floor and possible caps, while non-itemizers get a small new deduction. Planning ahead now can ensure your giving strategy still aligns with both your heart and your financial goals.

Disclaimer: This article is for informational purposes only and does not constitute tax or legal advice. Always consult with a qualified tax professional to understand how these rules apply to your specific situation.