Two changes are coming to the deduction of charitable contributions in 2026 that may affect your planned giving in 2025.

Beginning in the 2026 tax year, a limited amount given to charity can be deducted without itemizing deductions. The limit is up to $1,000 in charitable gifts ($2,000 for married filing jointly) given to almost all public charities. Donations to private foundations and donor advised funds to do not qualify for this deduction. This is a repeat of a deduction that was allowed for one year, in 2021. The OBBB makes this deduction permanent starting in 2026.

Also beginning in 2026, for those who do itemize deductions, a 0.5% floor based on AGI will be placed on charitable contribution deductions. That is, the amount of charitable contributions allowed will be reduced by one-half percent of your AGI. This is similar to the 7.5% floor on the deduction for medical expenses.

For 2025, taxpayers who expect to itemize deductions may wish to accelerate charitable contributions to 2025 to avoid the 0.5% AGI reduction that begins in 2026. However, taxpayers who don’t expect to itemize may wish to delay charitable contributions until 2026 to take advantage of the limited deductibility starting that year.