Key Charitable Tax Changes in 2026

As we enter 2026, it is important to review your charitable giving plans in light of new federal tax law changes that may affect giving strategies for some donors.

  • New threshold to itemize charitable deductions

    • Charitable contributions will now be deductible only to the extent that they exceed 0.5% of adjusted gross income. For example, a taxpayer with $200,000 in AGI will see no deduction for the first $1,000 of charitable gifts made in a year.

  • Limitation for high income taxpayers 

    • The value of itemized charitable deductions will be capped at 35% of the contribution, even for taxpayers in the highest federal income tax bracket.

  • Good news for significant cash gifts 

    • The rule allowing cash gifts to qualified public charities to be deducted up to 60% of AGI has been made permanent, providing greater certainty for major philanthropy after the new AGI threshold is met.

  • New incentive for non itemizers  

    • Beginning in 2026, individuals taking the standard deduction may deduct up to $1,000 (single filers) or $2,000 (married couples filing jointly) for cash charitable contributions. Gifts to donor advised funds and noncash gifts are not eligible for this deduction.

  • Qualified Charitable Distributions may be even more valuable  

    • In 2026, individuals age 70½ and older may direct up to $111,000 annually from an IRA to qualified charities through a Qualified Charitable Distribution. QCDs remain a highly effective giving strategy because they are excluded from taxable income and can count toward required minimum distributions.

Our team is always available to help you think through how your donor advised fund fits into your charitable goals for the year ahead!

Email: PS@berkshiretaconic.org

Call: 413.229.0370 x118