People Who Don't Itemize Can Deduct Up to $1,000 of Cash Giving This Year. Itemizers Get a New Floor.

The charitable deduction changes in three places this tax year, and the three changes point in different directions. One opens the deduction to the roughly nine in ten filers who take the standard deduction. The other two narrow it for people who itemize.

The deduction for non-itemizers

For tax years beginning in 2026, a taxpayer who claims the standard deduction can deduct cash contributions to eligible organizations — up to $1,000, or $2,000 for a married couple filing jointly. The IRS lists the provision among the changes enacted by the 2025 tax law and describes it as available to individuals who do not itemize. Fidelity's summary notes the provision is permanent and is not indexed for inflation, so the $1,000 figure does not rise with prices.

The limits are narrow in three ways. The gift has to be cash. The IRS says contributions to donor-advised funds and supporting organizations do not qualify; Fidelity's and Kiplinger's summaries also exclude private non-operating foundations. And carryovers from prior years do not count — the deduction applies to what was given in the year. Kiplinger adds that the ordinary substantiation rule still applies: a gift of $250 or more needs a written acknowledgment from the charity.

The 0.5% floor for itemizers

On the itemizing side, 2026 introduces a floor. Only the portion of total charitable contributions above 0.5% of adjusted gross income is deductible. The arithmetic is unforgiving at modest giving levels relative to income.

• Kiplinger's example: $200,000 of AGI makes the floor $1,000, so a $2,000 donation yields $1,000 of deduction.
• Fidelity's example: a couple with $300,000 of AGI can deduct only the amount above $1,500.

Kiplinger notes that qualified charitable distributions — the direct transfers from an IRA available from age 70½ — are not subject to the floor.

The 35% cap

The third change limits what an itemized deduction is worth at the top of the rate schedule. From 2026 the tax benefit of itemized deductions is capped at 35% for taxpayers in the 37% bracket. Kiplinger puts a simple case: a $2,000 deductible donation saves $700 in 2026 against $740 under the prior rules. Fidelity runs a larger one: at $1 million of AGI, a $20,000 donation produces $5,250 of tax savings once the floor and the cap are applied, against $7,400 without them. Fidelity notes the cap does not apply to the non-itemizer deduction.

What else moved in the same package

The IRS page listing the 2025 law's changes puts the charitable provisions alongside several other items that take effect for 2026. The child and dependent care credit's maximum rate rises from 35% to 50%, with qualifying expenses still capped at $3,000 for one qualifying individual and $6,000 for two or more. Bronze and catastrophic health plans become compatible with health savings accounts from January 1, 2026, whether bought on an exchange or not, and direct primary care arrangement fees become payable from an HSA. The limits on repaying excess advance premium tax credit payments are removed for tax years beginning after December 31, 2025.

This article explains how the rules are written. It is not tax advice and not a recommendation about giving; the effect on any return depends on income, filing status and the organizations involved.