03 May, 2026

Charitable Deductions in 2026: What Changed Under the OBBBA

TL;DR — Three changes to charitable deductions took effect in 2026 under the One Big Beautiful Bill Act (OBBBA):

SALT cap raised to $40,400 (MFJ/single) from $10,000 — makes itemizing worthwhile for far more taxpayers in high-tax states.

New above-the-line deduction for non-itemizers: $1,000 single / $2,000 joint — you can now deduct cash donations without itemizing.

New 0.5% AGI floor on charitable donations for itemizers — only total giving (cash and non-cash) above 0.5% of your AGI is deductible (a small threshold; rarely disqualifying, but a new calculation step).

Rules that did not change: the 60% AGI ceiling on cash donations, FMV rules for non-cash gifts, the Form 8283 requirement, and the $250 written-acknowledgment rule.

Not sure how these changes affect your return? Run the numbers in 30 seconds with our free 2026 Itemize vs. Standard Deduction Calculator — it factors in the new SALT cap, the 0.5% AGI floor, and the above-the-line deduction automatically.

The One Big Beautiful Bill Act (OBBBA), signed in July 2025, made the most significant changes to charitable deduction rules since the Tax Cuts and Jobs Act of 2017. Three of those changes directly affect how itemizers and non-itemizers alike can deduct charitable contributions starting with the 2026 tax year and running through 2029.

Here is exactly what changed, what didn’t, and how to apply the new rules.

Change 1: The SALT Cap Rose to $40,400

The State and Local Tax (SALT) deduction cap increased from $10,000 (set by TCJA in 2017) to $40,400 for married-filing-jointly and single filers and $20,200 for married-filing-separately filers under OBBBA.

This cap applies to the combined total of:

State income taxes (or state sales taxes, if you elect that method)
Local income taxes
Real estate (property) taxes on your primary and secondary homes

Why the SALT change matters for charitable giving

The SALT cap change is the primary driver that will push more taxpayers back into itemizing in 2026. When the SALT cap was $10,000, many taxpayers in high-tax states found that their total itemized deductions — SALT plus mortgage interest plus charitable gifts — still fell short of the standard deduction, so they took the standard deduction and got no tax benefit from their charitable giving.

With SALT now deductible up to $40,400, residents of California, New York, New Jersey, and Connecticut can often deduct $20,000–$40,000 in state taxes alone. Adding mortgage interest and charitable donations frequently pushes itemized deductions well above the 2026 standard deduction ($16,100 single / $32,200 MFJ).

Practical impact: If you’re in a high-tax state and own a home, recalculate your itemized deductions using the new SALT cap. More itemizers means more taxpayers who can fully deduct their charitable gifts.

👉 See your number: Our SALT Deduction Calculator shows exactly how much you can deduct under the new $40,400 cap based on your state taxes and property taxes — and whether itemizing now beats the standard deduction for your situation.

Change 2: Non-Itemizers Can Now Deduct Up to $1,000/$2,000 in Cash Donations

OBBBA created a new above-the-line deduction for taxpayers who take the standard deduction. Starting in 2026, you can deduct:

$1,000 of cash charitable contributions (single filers)
$2,000 of cash charitable contributions (married filing jointly)

directly on Form 1040 — no Schedule A, no itemizing required.

How the non-itemizer deduction works

This deduction applies only to cash donations to qualified 501(c)(3) organizations. Non-cash gifts (clothing, furniture, electronics) do not qualify for this deduction.

You still need documentation. A bank record, canceled check, or written receipt from the charity is required for every donation you claim. For any single donation of $250 or more, you need a contemporaneous written acknowledgment from the charity before you file. See IRS Publication 526 for the full written-acknowledgment requirements.

Who benefits most: The roughly two-thirds of taxpayers who take the standard deduction. If you previously got no tax benefit from donating because you didn’t itemize, the OBBBA deduction changes that — up to $1,000 or $2,000 of your cash gifts now reduce your taxable income directly.

Change 3: A New 0.5% AGI Floor on Charitable Donations for Itemizers

If you itemize, OBBBA added a 0.5% AGI floor on charitable contributions (new IRC §170(b)(1)(I)). Only the portion of your total donations — cash and non-cash combined — that exceeds 0.5% of your adjusted gross income (AGI) is deductible.

How to calculate the floor

AGI	0.5% Floor	Effect on deduction
$50,000	$250	First $250 of charitable giving is not deductible
$100,000	$500	First $500 of charitable giving is not deductible
$200,000	$1,000	First $1,000 of charitable giving is not deductible
$500,000	$2,500	First $2,500 of charitable giving is not deductible

For most donors, this floor is small and rarely eliminates meaningful deductions. A taxpayer with $100,000 in AGI who donates $5,000 to charity can still deduct $4,500. But it is a new line item in the calculation.

Important: The 0.5% floor applies to all charitable contributions — cash and non-cash alike. Your combined total for the year must clear the floor before any of it is deductible. (The floor does not apply to the non-itemizer deduction described in Change 2.)

👉 Calculate your floor: The DeductAble tax calculator applies the 0.5% AGI floor automatically and shows your effective cash-donation deduction in 2026.

What Did Not Change in 2026

Several charitable deduction rules are unchanged by OBBBA:

60% AGI limit on cash donations — Still in effect. Total deductible cash donations to public charities cannot exceed 60% of your AGI. Excess carries forward for up to five years.
FMV rules for non-cash donations — Clothing, household goods, and other property are still deductible at fair market value under the good-used-condition standard. See IRS Publication 561 for valuation guidance.
$250 written-acknowledgment rule — Any single donation of $250 or more (cash or non-cash) still requires a contemporaneous written acknowledgment from the charity.
Form 8283 requirement — Non-cash donations totaling more than $500 per year still require Form 8283. Donations of a single item or group of similar items over $5,000 still require a qualified appraisal.
Qualified organization requirement — Donations must be to IRS-qualified 501(c)(3) organizations. Gifts to individuals, political organizations, or candidates are not deductible.

Before OBBBA vs. After OBBBA: Side-by-Side Comparison

Rule	Before OBBBA (2024)	After OBBBA (2026–2029)
SALT deduction cap	$10,000 (all filers)	$40,400 (MFJ/single) / $20,200 (MFS)
Non-itemizer charitable deduction	None	$1,000 (single) / $2,000 (joint) cash donations
AGI floor on charitable donations (itemizers)	None	0.5% of AGI
60% AGI ceiling on cash donations	60%	60% (unchanged)
Non-cash donation rules (FMV)	Unchanged	Unchanged
Form 8283 threshold	$500 non-cash	$500 non-cash (unchanged)
$250 written-acknowledgment rule	$250	$250 (unchanged)

How to Apply These Changes to Your 2026 Return

The OBBBA changes add two new calculations to year-end tax prep: the 0.5% AGI floor for itemizers and the $1,000/$2,000 non-itemizer cap. Both require knowing your exact donation totals before you sit down to file.

These rules matter most in December, when the bulk of annual giving happens. If you are planning gifts around Giving Tuesday (December 1, 2026), our guide to making Giving Tuesday donations tax-deductible applies all three OBBBA changes step by step, and the year-end charitable giving deadline checklist covers when each gift type — check, credit card, stock, DAF — must settle to count for 2026.

Step 1 — Estimate the impact now. Use the free 2026 Tax Calculator to model the new SALT cap, the 0.5% AGI floor, and the above-the-line non-itemizer deduction against your income. In under a minute, you’ll know whether itemizing beats the standard deduction for your situation in 2026.

Step 2 — Track every donation as it happens. DeductAble logs every cash and non-cash donation throughout the year, assigns fair market values to donated goods, and generates IRS-ready export reports for TurboTax or your CPA — organized by donation type so the new floor and cap calculations are trivial at year-end.

Frequently Asked Questions

What changed for charitable deductions in 2026?

Three changes took effect under the One Big Beautiful Bill Act (OBBBA), signed July 2025 and effective for tax years 2026–2029. First, the SALT cap rose from $10,000 to $40,400 (MFJ/single) or $20,200 (MFS), making itemizing more attractive in high-tax states. Second, non-itemizers can now deduct up to $1,000 (single) or $2,000 (joint) of cash charitable donations without itemizing. Third, itemizers face a new 0.5% AGI floor on charitable deductions — only the portion of total giving (cash and non-cash) above that threshold is deductible.

What is the non-itemizer charitable deduction in 2026?

Taxpayers who take the standard deduction can deduct up to $1,000 (single) or $2,000 (joint) of cash charitable contributions directly on Form 1040 without itemizing. This above-the-line deduction applies only to cash donations to qualified 501(c)(3) organizations. You still need documentation — a bank record or charity receipt — for each donation claimed, and a written acknowledgment for any single gift of $250 or more.

What is the SALT cap in 2026?

The SALT deduction cap increased from $10,000 to $40,400 for married-filing-jointly and single filers, and $20,200 for married-filing-separately filers. This cap applies to the combined total of state income taxes (or sales taxes) and property taxes. The higher cap is in effect for tax years 2025 through 2029.

What is the 0.5% AGI floor on charitable deductions?

Itemizers can only deduct charitable contributions that exceed 0.5% of their AGI. On a $100,000 AGI, the floor is $500 — only total giving above $500 is deductible. Under new IRC §170(b)(1)(I), the floor applies to all charitable contributions, cash and non-cash alike.

Did the 60% AGI limit on cash donations change in 2026?

No. The 60% AGI limit on cash charitable contributions was not changed by OBBBA and remains in effect for 2026. Total cash donations to public charities cannot exceed 60% of AGI in a single year; excess carries forward for up to five years.

Can I deduct non-cash donations in 2026?

Yes. Non-cash donations — clothing, household goods, electronics, furniture — remain deductible at fair market value in 2026, though they count toward the new 0.5% AGI floor along with your cash gifts. The IRS good-used-condition standard still applies: items must be in at least good used condition to be deductible. See IRS Publication 561 for FMV guidance.

Do I still need Form 8283 for non-cash donations in 2026?

Yes. IRS Form 8283 is still required whenever total non-cash charitable contributions exceed $500 for the year. This was not changed by OBBBA. For any single item or group of similar items over $5,000, a qualified written appraisal is also required. See IRS Publication 526 for documentation details.

What is the standard deduction in 2026?

The 2026 standard deduction is $16,100 for single filers and $32,200 for married filing jointly (IRS Rev. Proc. 2025-32). If your itemized deductions — SALT up to $40,400, mortgage interest, charitable gifts above the 0.5% AGI floor, and qualifying medical expenses — exceed these thresholds, itemizing will produce a larger deduction.