Big Changes to Charity Deductions Coming in 2026: What the OBBBA Means for Your Taxes

The One Big Beautiful Bill Act (OBBBA) brings big changes to how you can deduct charitable donations on your taxes, starting in 2026.

 

Above the Line: First, if you don’t itemize deductions and usually take the standard deduction, you can now claim an “above-the-line” deduction for cash donations to charity—up to $1,000 for single filers or $2,000 for married couples. This means you can get a tax break for giving to charity even if you don’t itemize your deductions.

 

Itemizing: For people who do itemize, there’s a new rule: you can only deduct charitable donations that are more than 0.5% of your adjusted gross income (AGI). For example, if your AGI is $100,000, only the amount you give over $500 is deductible. This “floor” means small donations may not give you a tax benefit if you itemize.

 

Limitations: The OBBBA also makes permanent the higher limit for cash donations to public charities. You can now deduct up to 60% of your AGI for cash gifts, instead of the old 50% limit.

 

Finally, if you’re a high-income taxpayer, there’s a new cap: the value of your itemized deductions (including charity) is limited to 35% of your income, not 37% as before.

 

In short: OBBBA gives non-itemizers a new way to deduct charity, but makes it harder for itemizers—especially high earners—to get the same tax break for smaller gifts. 

 

Plan your giving accordingly!