Tax Laws 2026

Under the One Big Beautiful Bill Act (OBBB) that started in 2026, changes were made to charitable giving rules. This newly signed tax legislation extends (and makes permanent) many current tax provisions and introduces new ones that could influence your charitable giving.

We want to make sure you are informed to make the wisest decisions regarding your generosity.

What's Stayed the Same?

• Tax brackets: The new law permanently extends the 10%, 12%, 22%, 24%, 35% and 37% tax rates.
• Standard deduction: Most taxpayers will continue to use the elevated standard deduction—$15,750 for individuals and $31,500 for married couples in 2025. It will be indexed for inflation thereafter.
• Deduction limits for cash gifts: You can continue to deduct cash gifts to public charities up to 60% of your adjusted gross income (AGI) if you itemize.
• Estate tax exemption: The federal estate and gift tax exemption will remain high and increase to $15 million per individual (indexed annually).

What's New in 2026?

• Tax break for non-itemizers: You can deduct up to $1,000 (individuals) or $2,000 (married couples) for charitable gifts, even if you don’t itemize. Applies only to cash contributions to qualified charities (excludes donor-advised funds and private non-operating foundations).
• If you do itemize, there’s a new floor on your charitable deduction: The new law requires taxpayers to give at least 0.5% of their adjusted gross income (AGI) to receive a tax benefit for their charitable giving.
• If you are in the top tax bracket, there’s a new charitable contribution limitation: Under current law, top earners get a 37-cent tax benefit for every $1 deducted. Starting in 2026, that benefit will be capped at 35 cents per dollar.

Smart Charitable Giving Strategies

Since these limitations took effect this year, you may want to consider a smart charitable giving strategy. This includes:

• Gifts of Stock 
  • Avoid capital gains tax.
  • Receive a deduction for the fair market value of the stock if held for more than one year.
• Qualified Charitable Distributions from your IRA Account
  • Applies to persons 70½ and older.
  • Allows you to give from pre-tax assets and your distribution is excluded from taxable income.
  • Satisfies your minimum required distribution for the year.
• Donor Advised Funds
  • You can claim an immediate income tax deduction for the full value of your contribution in the year you make it.
  • When you contribute appreciated assets, like stocks or real estate held for more than a year, you can avoid paying capital gains tax on the profits.
  • Assets in the fund are invested and grow tax-free, allowing the charitable impact of your donation to increase over time.