Starting in 2026, taxpayers can deduct up to $2,000 in cash donations without itemizing—here’s how to qualify and maximize your IRS charitable contribution savings

Good news for charitable giving: IRS announces new deduction rules starting in 2026

If you’re someone who regularly donates to charity and likes to claim those donations on your taxes, there’s good news coming your way. Starting in 2026, the IRS is implementing several new rules that make it easier—though a bit more structured—to deduct your charitable contributions. Whether you itemize your deductions or take the standard deduction, the changes could help you save more on your tax bill.

Below, we’ll break down what’s changing, how much you can deduct, who qualifies, and what you need to watch out for. Let’s dive in.

Key highlights at a glance

• Non-itemizers can now deduct up to $1,000 ($2,000 for joint filers) in cash donations.
  
• Itemizers must now meet a new minimum donation threshold—0.5% of AGI—to qualify.
  
• High-income filers will have their deduction value capped.
  
• Non-cash gifts also face new limits.
  

1. Bigger deductions for non-itemizers

In 2020 and 2021, a pandemic-era provision allowed people who took the standard deduction to still write off up to $300 ($600 for couples) in cash donations. That benefit expired in 2022—but it’s making a comeback in 2026, with even better limits.

Here’s What’s New:

• Deduction limit raised: Starting in 2026, if you don’t itemize, you’ll be able to deduct up to $1,000 in cash gifts. Married couples filing jointly can deduct up to $2,000.
  
• Only for direct cash donations: This applies only to cash gifts given directly to qualified 501(c)(3) charities. Contributions to donor-advised funds or private foundations are not eligible.
  

So if you’re used to giving money to food banks, shelters, or educational nonprofits—and don’t itemize—you’ll finally get a bigger tax break for your generosity.

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2. New threshold for itemizers

If you itemize your deductions, the IRS has a new rule that might surprise you. Now, only donations above 0.5% of your Adjusted Gross Income (AGI) can be deducted.

Example:

• Say your AGI is $100,000.
  
• You must first subtract 0.5%, or $500.
  
• If you donate $2,000 in cash gifts, only $1,500 is deductible.
  

This is essentially a “floor” you must exceed before the IRS counts your donation. Previously, there was no minimum threshold—you could deduct every eligible penny.

3. The 60% rule still applies

The 60% rule is sticking around. That means:

• You cannot deduct charitable donations that exceed 60% of your AGI in a single tax year.
  
• For donor-advised funds or private foundations, the cap is even lower, usually around 30%.
  

But there’s good news:

If you donate more than allowed in a given year, you can carry forward the excess for up to five years.

Carry forward example:

• AGI = $100,000
  
• Donation = $70,000
  
• Deductible now = $60,000 (60% rule)
  
• The extra $10,000 can be used in future years.
  

4. No double-dipping allowed

Here’s a key rule to remember:

You cannot claim the $1,000/$2,000 deduction for non-itemizers if you itemize your taxes.

It’s either one or the other. You’ll have to calculate which method offers the bigger savings when you file.

 5. High-income filers: Watch your deduction cap

If your income puts you in the top tax bracket (37%), the IRS is applying a limit to the value of your deduction—not the amount donated, but how much you can save on taxes from it.

Here’s how it works:

• Normally, a $10,000 deduction would save you $3,700 in taxes at the 37% rate.
  
• Under the new rule, the maximum tax saving is capped at 35%, so you can only save $3,500.
  

This cap helps ensure that the wealthiest Americans don’t benefit disproportionately from charitable deductions.

6. What about non-cash donations?

Let’s say you donate clothes, furniture, or food to charity. Those are non-cash gifts, and new rules apply here too.

For Itemizers:

• The same 0.5% AGI floor applies to these gifts.
  
• If your donation doesn’t exceed that threshold, it won’t be deductible.
  

For Non-Itemizers:

• You cannot deduct non-cash donations at all.
  
• The $1,000/$2,000 deduction is cash-only.
  

7. Why these rules matter

Many Americans, especially those who take the standard deduction, haven’t been able to deduct charitable donations for years. These new rules—especially the return of the non-itemizer deduction—open doors for millions to finally get a tax benefit for their generosity.

On the flip side, itemizers must now do a little extra math to ensure their donations meet the new minimum requirements. And high earners will have to adjust their expectations for how much they’ll save.