Key Tax Changes In 2026
The One Big Beautiful Bill (OBBB) Act passed on July 4th, 2025. Below, we’ve highlighted three key changes that may impact philanthropy and giving starting January 1st, 2026.
2026 Tax Changes
Larger Universal Charitable Deduction: More Donors Get Tax Benefits Starting in 2026, non-itemizing taxpayers can deduct up to $1,000 ($2,000 for married couples) for charitable gifts. Charitable deductions will no longer be restricted to those who itemize deductions. This makes it easier for donors to realize tax benefits from supporting charities.
New Minimum for Itemized Charitable Deductions: If someone itemizes their deductions, starting in 2026, a “floor” applies to their deduction for charitable contributions. Specifically, the charitable contribution deduction will be reduced by an amount equal to 0.5% of their adjusted gross income (AGI). For example, if the AGI is $200,000, the first $1,000 of charitable contributions in a year will not be deductible; only giving above that amount qualifies for a tax benefit.
Estate & Gift Tax Exemption Increases: The federal estate and gift tax exemption rises to $15 million per person (indexed for inflation), meaning very few estates will owe federal estate tax. Some states, however, have much lower thresholds. For donors with large estates, planned giving and legacy gifts may offer additional benefits. What This Means for Planned Giving With new changes taking effect, giving through a will, trust, IRA, or making lifetime gifts of appreciated assets remain powerful ways to support causes you care about.
Source: FreeWill
