New Tax Break for Charitable Giving: What to Know for 2026

Starting in 2026, U.S. taxpayers will see significant changes to how charitable contributions are treated for federal income tax purposes. These changes are designed to encourage charitable giving while adjusting deduction rules for both itemizers and non-itemizers.

New Deduction for Non-Itemizers

One of the most notable updates for 2026 is that individuals who do not itemize deductions on their tax returns will be able to claim a charitable deduction of up to $1,000 for single filers and $2,000 for couples filing jointly for cash contributions to qualified public charities. This above-the-line deduction is available in addition to the standard deduction and can lower taxable income even if you don’t itemize on Schedule A.

Itemizer Rules: Donation Floor and Limitations

For those who continue to itemize, charitable deduction rules are changing. Starting in 2026, only donations that exceed 0.5% of your adjusted gross income (AGI) will be deductible for federal tax purposes. Small donations will no longer qualify unless they push your total itemized deductions above this floor threshold.

Additionally, the tax benefit of itemized deductions, including charitable giving, will be capped at 35 % of the value for taxpayers in the highest federal tax bracket. This reduces how much tax savings high earners can claim compared to previous rules.

Strategic Timing of Donations

With these new rules, financial advisors suggest considering when you make charitable gifts to maximize tax benefits. Donors might accelerate larger gifts into 2025 to claim them under the older rules before the 0.5% floor and cap changes take effect. Likewise, smaller recurring donations may still benefit from the new above-the-line deduction once 2026 begins.

Qualified Charitable Distributions (QCDs)

For older taxpayers, using Qualified Charitable Distributions (QCDs) from an IRA can remain an effective strategy. QCDs allow individuals aged 70½ or older to donate directly from their IRA to charity in a tax-efficient way, potentially reducing taxable income without itemizing.

Conclusion

The new tax break for charitable giving in 2026 creates opportunities for many taxpayers to receive deductions for donations — especially non-itemizers who previously saw no benefit. Understanding the updated rules for both standard and itemized deductions can help donors maximize tax savings while supporting causes they care about. Planning ahead and coordinating donation timing with financial goals is key to making the most of these changes.