Starting in 2026, new tax rules will change how charitable donations are deducted. The updates expand access to deductions for taxpayers who take the standard deduction while introducing new limits for those who itemize — especially higher-income earners. Understanding these changes now can help you give more strategically in the years ahead.
What’s Changing in 2026
New deduction for non-itemizers.
Taxpayers who take the standard deduction will be able to deduct cash donations to qualified public charities—up to $1,000 for single filers and $2,000 for married couples filing jointly. This permanent change allows most taxpayers to receive a tax benefit for charitable giving for the first time in years.
New deduction floor for itemizers.
For those who itemize, charitable contributions will only be deductible to the extent they exceed 0.5% of adjusted gross income (AGI). Smaller annual donations may no longer generate a tax benefit unless total giving clears this threshold.
Reduced benefits for high-income earners.
Taxpayers in the top tax bracket will see the value of itemized charitable deductions capped at 35%, slightly reducing the tax savings associated with large gifts.
What to Do Now
As you plan for 2026 and beyond, consider these steps:
- Review how you typically file (standard deduction vs. itemizing), as this determines which rules apply to you.
- Track cash donations carefully, especially if you take the standard deduction and want to maximize the new above-the-line deduction.
- Evaluate annual giving amounts if you itemize to ensure your contributions exceed the new AGI threshold.
- Consider strategic timing or bunching of donations, which may help preserve deductibility under the new rules.
- High-income earners should revisit their charitable strategies and coordinate giving with broader tax and financial planning.
The Bottom Line
These changes are designed to encourage charitable giving while reshaping how tax benefits are calculated. Whether you give modestly or support charities more substantially, proactive planning can help ensure your generosity continues to align with your financial goals.
If you’re unsure how these new rules affect you, now is a good time to review your charitable giving strategy as part of your overall financial plan—before 2026 arrives.
If you’d like to discuss how potential policy changes could affect your investments, taxes, or retirement plan, we can help you make sense of it all — calmly, strategically, and with your long-term goals in mind. You can schedule a strategy session with us to discuss how this may affect your personal financial situation or, if you are a current client, contact us for a personal review of your situation at info@astifinancial.com.