The "One Big Beautiful Bill Act" (OBBBA) significantly changes how you can deduct charitable donations, whether you itemize or not. The key changes are set to begin in the 2026 tax year.
Changes for Taxpayers Who Take the Standard Deduction:
- Up to $1,000 (single) or $2,000 (MFJ) for direct cash gifts to 501(c)(3) charities.
- This deduction applies to cash contributions made to public charities but excludes donations to donor-advised funds or private non-operating foundations.
Changes for Taxpayers Who Itemize:
- Starting in 2026, you can only deduct charitable contributions that exceed 0.5% of your adjusted gross income (AGI).
- For high-income taxpayers in the top 37% tax bracket, the value of their itemized charitable deductions will be capped at a 35% marginal rate.
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