2026 Tax Law Change to Charitable Contributions Deductions

The One Big Beautiful Bill Act (OBBBA) provided taxpayers with some immediate tax relief when initially signed in 2025 and now, in 2026, we will see additional taxpayer-friendly permanent changes implemented.

Beginning in tax year 2026, taxpayers may claim $1,000 ($2,000 if married filing jointly) in charitable contributions as an above-the-line deduction. Before OBBBA, taxpayers had to itemize their deductions to claim any charitable contributions. With the increase in standard deductions from the Tax Cuts & Jobs Act in 2017, fewer taxpayers itemize and were no longer able to claim any tax benefit from their charitable contributions.

For taxpayers who do itemize their deductions, OBBA created an adjusted gross income (AGI) floor of 0.5% before charitable contributions are deductible. This means the first 0.5% of your AGI in donations is disallowed – you may only claim the portion that exceeds this threshold.