IRS changes in 2026 will reshape charitable deductions. Learn how the new 0.5% AGI floor, 60% cash contribution ceiling, and non-itemizer $1,000/$2,000 write-off affect your tax savings—and what to do in 2025 to prepare.
Charitable giving has long been a cornerstone of U.S. tax planning. In 2026, significant updates will take effect, influencing how individual taxpayers can deduct donations. With the IRS introducing a 0.5% AGI floor, keeping the 60% of AGI limit for cash donations, and offering a new non-itemizer deduction of up to $1,000 (single) or $2,000 (married), taxpayers must carefully strategize their 2025 and 2026 returns to maximize benefits.
Become Our Featured Tax Expert.
This premium ad space is reserved for one tax professional. Put your firm in the spotlight and reach qualified USA leads directly.
To claim this exclusive spot, contact us at [email protected].
📌 The 0.5% AGI Floor: What It Means
Beginning in 2026, you will only be able to deduct charitable contributions that exceed 0.5% of your Adjusted Gross Income (AGI). This is similar in concept to the medical expense deduction’s floor but at a much lower percentage.
For example, if your AGI is $100,000, the first $500 of charitable donations will not be deductible. Contributions above that amount will qualify, subject to other IRS rules.
💰 60% Cash Contribution Limit
The IRS continues to allow deductions of up to 60% of AGI for cash contributions to qualified charities. Contributions of property, appreciated stock, or other non-cash donations may fall under lower percentage limits (20%, 30%, or 50% depending on type and recipient).
This rule means high-income taxpayers can still offset a significant portion of taxable income, but must plan carefully to stay within IRS thresholds.
Become Our Featured Tax Expert.
This premium ad space is reserved for one tax professional. Put your firm in the spotlight and reach qualified USA leads directly.
To claim this exclusive spot, contact us at [email protected].
📝 New Non-Itemizer Write-Off
One of the most taxpayer-friendly changes in 2026 is the introduction of a non-itemizer charitable deduction. Even if you claim the standard deduction, you will be allowed to deduct:
- $1,000 if filing Single or Head of Household
- $2,000 if filing Married Filing Jointly
This allows millions of taxpayers who don’t itemize to still receive a direct tax benefit for charitable contributions.
📊 Planning Strategies for 2025 and 2026
- Bunching Donations: Consider accelerating or deferring large gifts to maximize deductions across years.
- Leverage HSAs/FSAs: Avoid overlap with charitable giving strategies that reduce taxable income.
- Appreciated Assets: Donating stock avoids capital gains tax and still qualifies for deductions.
- Donor-Advised Funds: Bundle donations into a single year to cross the AGI floor while distributing funds later.
- Standard Deduction Planning: Non-itemizers can now benefit directly from giving without Schedule A.
Become Our Featured Tax Expert.
This premium ad space is reserved for one tax professional. Put your firm in the spotlight and reach qualified USA leads directly.
To claim this exclusive spot, contact us at [email protected].
✅ Key Takeaways for U.S. Taxpayers
- Charitable contributions in 2026 are subject to a 0.5% AGI floor.
- Cash contributions remain deductible up to 60% of AGI.
- New non-itemizer write-off allows up to $1,000/$2,000 deduction without Schedule A.
- Plan in 2025 to align charitable giving with itemized vs. standard deduction strategies.
- High earners should use donor-advised funds and appreciated assets for maximum efficiency.
