How is charitable giving deductible in 2025 vs 2026?

In 2025 you must itemize to deduct charitable contributions — the CARES-era non-itemizer break has expired. Starting 2026, OBBBA restores a permanent non-itemizer cash deduction of $1,000 (single) or $2,000 (MFJ) — below-the-line, so it stacks with the standard deduction and reduces taxable income, not AGI. Itemizers face a new 0.5%-of-AGI floor and a 35% top-rate cap.

What is the OBBBA 0.5% floor?

Starting 2026, itemized charitable contributions are deductible only to the extent they exceed 0.5% of AGI. At $200,000 AGI, the first $1,000 of contributions is non-deductible.

What is the 35% top-rate cap?

For taxpayers in the 37% bracket, OBBBA caps the charitable deduction benefit at 35% — the last 2 percentage points of the deduction are disallowed. This calculator applies the cap automatically.

Are AGI ceilings still in effect?

Yes. Cash contributions to public charities are still capped at 60% of AGI; long-term appreciated stock/property at 30% of AGI, and at 50% of AGI minus your cash gifts when that is lower. Excess amounts carry over five years but this calculator focuses on the current-year deduction.

Does the non-itemizer cash deduction work for stock donations?

No. OBBBA's non-itemizer cash deduction is limited to CASH gifts to qualified public charities. Donor-advised funds and private foundations are excluded.

OBBBA · Charitable Giving

Charitable Deduction Calculator (2025 vs 2026)

Updated August 24, 2026Reviewed for 2025 & 2026 tax years

Model your charitable tax savings under both years' rules. 2026 introduces a 0.5%-of-AGI floor, a 35% top-rate cap, and a new non-itemizer cash deduction (below-the-line — it reduces taxable income, not AGI).

IRS-Sourced

How does OBBBA change my charitable deduction in 2026?

OBBBA (P.L. 119-21) reshapes charitable tax benefits starting in 2026. Non-itemizers can deduct up to $1,000 (single) or $2,000 (MFJ) in cash gifts as a below-the-line deduction that stacks with the standard deduction and reduces taxable income (not AGI) — restoring a permanent version of the CARES-era break. Itemizers see two new limits: only contributions above 0.5% of AGI are deductible, and taxpayers in the 37% bracket have their deduction benefit capped at 35%.

2025: Itemizers only. 60% AGI cash ceiling / 30% appreciated property ceiling.
2026: Non-itemizers get $1,000 / $2,000 below-the-line cash deduction (reduces taxable income, not AGI).
2026: Itemizers subject to 0.5% AGI floor on charitable contributions.
2026: 37% bracket taxpayers capped at 35% marginal benefit.
60% (cash) / 30% (appreciated property, and no more than 50% of AGI minus cash gifts) AGI ceilings unchanged in 2026.

Source:P.L. 119-21 (OBBBA) §§70424–70425; IRS Pub 526

Tax Year

Inflation-adjusted

Filing Status

Adjusted Gross Income (AGI)

Cash Contributions

Appreciated Stock/Property

Other itemized deductions (after limits)

Not sure of the deductible amounts? Use the Itemized Deduction Calculator.

Best path — 2026

$440

Take the standard deduction + non-itemizer cash gift

Itemize savings

@ 22.0%

Standard + cash gift (below the line)

$440

@ 22.0%

0.5% AGI floor removed $900 of your itemized charity.

Notes

• OBBBA 0.5% AGI floor applied: $900 of contributions non-deductible.

• Itemizing loses to the standard deduction — no incremental tax benefit from your charity.

• OBBBA non-itemizer cash deduction (below-the-line, §170(p)): up to $2,000 for MFJ.

• Cash gifts to qualified public charities only (no DAFs or private foundations).

Related Tools & Guides

Federal Tax Calculator State Tax Calculator Tax Bracket Calculator Tax Refund Schedule 2025 Tax Brackets Guide Standard Deduction Guide

Sources & References

Primary references used for this content

Publication 17

Your Federal Income Tax

For Individuals

View on irs.gov

Rev. Proc. 2025-32

2026 Tax Brackets and Adjustments

2026 inflation adjustments (incl. OBBBA changes)

View on irs.gov

IR-2025-103

2026 Inflation Adjustments Press Release

IRS 2026 inflation announcement

View on irs.gov

✓3 primary sources; links re-checked on a weekly rotation by the source watcher

Disclaimer: This calculator provides estimates for educational purposes only. Not tax, legal, or financial advice. Results may vary based on your specific circumstances. Consult a qualified CPA or tax professional for personalized guidance.