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3d ago

New 2026 Charitable Tax Rules Spur Last-Minute 2025 Tax Moves

This year offers fuller write-offs before a 0.5% AGI floor with a 35% top-bracket limit begins in 2026.

The charitable deduction in 2026 will feature key changes from the so-called "One Big Beautiful Bill"
A photo illustration shows tax forms as the period to file returns or extensions with the IRS approaches.
2026 numbers showing through a ripped red paper
2022 blank 1040 us tax form with calculator and keyboard on office desk. Financial accounting concept

Overview

  • Starting in 2026, standard deduction filers can claim a new charitable write-off of up to $1,000 for singles or $2,000 for joint filers, so non-itemizers may benefit by waiting to give until the new year.
  • Itemizers will face a 0.5% of AGI floor next year, making only donations above that threshold deductible, which has tax pros urging gifts by Dec. 31 to capture 2025 treatment.
  • For top-bracket taxpayers, the tax value of all itemized deductions will be capped at 35% in 2026, prompting advice to bunch contributions or fund donor-advised funds now.
  • The SALT deduction cap is $40,000 for 2025 with phase-outs beginning at $500,000 of income and a full phase-out above $600,000, leading advisers to suggest prepaying state and local taxes before year-end.
  • Other 2025-only advantages include extra deductions for seniors, non-taxable tips and overtime this year, deductible interest up to $10,000 on new U.S.-assembled car purchases, and a brief window through Dec. 31 to use the SECURE 2.0 long-term care premium withdrawal.