Charitable Tax Deductions in 2026 – Part One
By Nick Davis, Director of Advancement
Charitable-giving rules shift in 2026 in ways that change how, when, and what you should give. The next three months of Stewardship As We Age will explain what is new, and how to plan.
What’s New in 2026
If you itemize your tax deductions, only the portion of your charitable gifts above 0.5% of your Adjusted Gross Income (AGI) is deductible as an itemized deduction.
How the 0.5% floor works (itemizers): Think of the floor as an insurance deductible. The first 0.5% of AGI in gifts produces no itemized deduction. Amounts above the floor are deductible (then tested against the applicable AGI percentage limits).
Example:
- Adjusted Gross Income: $200,000
- 0.5% floor: $1,000
- Cash gifts to public charities: $4,000
- Deductible amount before percentage caps: $3,000 ($4,000 − $1,000)
- 60% limit for cash to public charities: $120,000 (not binding here)
Implication: If your annual giving is typically below the floor, you won’t see a deduction unless you “bunch” gifts so your total clears the threshold in a single year.
