Giving in 2026
Tax-smart giving
How Giving in 2025 Can Boost the Value of Your 2026 Donations
New U.S. tax rules taking effect in 2026 will change how many donors claim charitable deductions. For some supporters, making gifts planned for 2026 early, in 2025 can mean more tax savings for the same donation amount.
What’s changing in 2026?
For donors who itemize deductions:
For donors who itemize deductions:
- A new 0.5% AGI “floor”: only the portion of your charitable giving above 0.5% of your adjusted gross income (AGI) will be deductible.
- If you’re in the top tax bracket (37%), the value of your itemized deductions will be capped at about 35¢ of tax savings per $1 deducted.
Example 1: Donor with $100,000 Income
Assumptions:
- AGI: $100,000
- Marginal tax rate: 24%
- Donor itemizes in both years
- 0.5% AGI floor in 2026 = $500
$1,000 gift
- Given in 2025: full $1,000 is deductible → 24% × $1,000 = $240 tax savings.
- Given in 2026: only amount above $500 floor is deductible → $1,000 − $500 = $500 deductible → 24% × $500 = $120 tax savings.
$5,000 gift
- Given in 2025: full $5,000 deductible → 24% × $5,000 = $1,200 tax savings.
- Given in 2026: $5,000 − $500 floor = $4,500 deductible → 24% × $4,500 = $1,080 tax savings.
Example 2: Donor with $250,000 Income
Assumptions:
- AGI: $250,000
- Marginal tax rate: 32%
- Donor itemizes in both years
- 0.5% AGI floor in 2026 = $1,250
$1,000 gift
- Given in 2025: full $1,000 deductible → 32% × $1,000 = $320 tax savings.
- Given in 2026: total giving (in this example) does not exceed the $1,250 floor → no deduction, $0 tax savings.
$5,000 gift
- Given in 2025: full $5,000 deductible → 32% × $5,000 = $1,600 tax savings.
- Given in 2026: $5,000 − $1,250 floor = $3,750 deductible → 32% × $3,750 = $1,200 tax savings.
Quick comparison: tax savings if you give in 2025 vs 2026
| AGI | Gift Amount | Tax saved if given in 2025 | Tax saved if given in 2026 | Extra savings by giving in 2025 |
|---|---|---|---|---|
| $100,000 | $1,000 | $240 | $120 | $120 |
| $100,000 | $5,000 | $1,200 | $1,080 | $120 |
| $250,000 | $1,000 | $320 | $0 | $320 |
| $250,000 | $5,000 | $1,600 | $1,200 | $400 |
These examples are simplified and for illustration only. Your actual tax benefit will depend on your full situation,
including other deductions, credits, and state taxes.
Rule of thumb: if you expect to itemize and have steady or higher income in 2025, you may save more tax by making
2026 gifts early. Please speak with your tax advisor about your specific situation.
Make a 2025 gift
This information is for general educational purposes only and is not tax or legal advice. Donors should consult their own
advisors to understand how the new rules apply to them.
