Charitable Donation Tax Deduction Calculator 2026
Your 2026 charitable deduction under the new rules — the $1,000 / $2,000 non-itemiser deduction, the 0.5% AGI floor, itemise vs standard, capital gains avoided by donating stock, the 37%-bracket haircut, AGI limits, bunching and QCDs.
| Standard deduction | — |
|---|---|
| Itemising: charitable gifts after the 0.5% AGI floor | — |
| Itemising: total itemised deductions | — |
| Not itemising: above-the-line cash deduction | — |
| Better route | — |
| Federal tax saved by giving | — |
| Capital gains avoided by donating stock | — |
| Top-bracket haircut (37% → 35%) | — |
| AGI limits check | — |
| Bunching idea | — |
| Over 70½? Qualified charitable distribution | — |
In short
From 2026, non-itemisers can deduct $1,000 ($2,000 joint) of cash gifts to public charities (not donor-advised funds), while itemisers deduct only gifts above 0.5% of AGI, cash up to 60% of AGI and appreciated securities up to 30%, and 37%-bracket taxpayers get only 35% value. Donating appreciated stock avoids the capital gains tax as well; bunching gifts through a donor-advised fund clears the standard deduction; after 70½, qualified charitable distributions of up to $108,000 from an IRA are excluded from income entirely.
Who this is for: US donors planning year-end giving under the new 2026 rules, including stock gifts and donor-advised funds.
Charitable giving under the 2026 rules
- Non-itemisers: a new above-the-line deduction of $1,000 ($2,000 joint) for cash gifts to public charities — the first charity deduction for standard-deduction filers since 2021. Donor-advised funds and supporting organisations do not count.
- Itemisers: only gifts above 0.5% of AGI count ($750 on $150,000), and filers in the 37% bracket get 35% value instead of 37%. Cash is deductible up to 60% of AGI, appreciated securities up to 30%, with 5-year carry-forwards.
- Donate appreciated stock, not cash: you deduct the full market value and nobody pays the capital gains tax — typically 15–24% of the gain saved on top of the deduction.
- Bunch gifts into alternate years through a donor-advised fund to clear the standard deduction, then take the standard deduction (plus the new $1,000 / $2,000) in the off years.
- Over 70½: qualified charitable distributions of up to $108,000 a year from an IRA are excluded from income entirely — better than any deduction, and they satisfy RMDs.
See also: Itemized vs Standard Deduction Calculator 2026, RMD Calculator 2026 — Required Minimum Distribution.
Assumptions
- Itemised charity = gifts − 0.5% of AGI, within the 60% cash / 30% property limits; itemise if other + charity > standard + non-itemiser deduction.
- Non-itemiser deduction = min(cash excluding DAF, $1,000 / $2,000).
- 37%-bracket haircut = 2/37 × lesser of itemised deductions and taxable income above the 37% threshold; stock-gain tax avoided at long-term rates plus NIIT above $200,000.
Worked example
Gifts $18,000 less the $750 floor = $17,250 deductible; itemised total $39,250 against a $32,200 standard deduction — itemising wins by $7,050. Compared with giving nothing (standard deduction), the gifts save about $1,551 of federal tax, and donating the shares rather than selling them avoids roughly $1,050 of capital gains tax on the $7,000 gain. No 37%-bracket haircut at this income. Giving $2,000 of the cash to a donor-advised fund would not change the itemised result.
Frequently asked questions
Can I deduct charitable donations without itemising in 2026?
Yes — up to $1,000 ($2,000 joint) of cash gifts to public charities, above the line. Gifts to donor-advised funds and non-cash gifts do not qualify.
What is the 0.5% floor?
From 2026, itemisers can deduct only the part of their charitable gifts above 0.5% of AGI — $500 on $100,000 of income is not deductible.
Is it better to donate stock or cash?
Appreciated stock held over a year: you deduct the full value and avoid capital gains tax on the gain. Sell losers yourself (to harvest the loss) and give winners.
What is a qualified charitable distribution?
A direct transfer of up to $108,000 (2026) from an IRA to charity after age 70½ — excluded from income, counts toward RMDs, and needs no itemising.
Do donor-advised fund gifts still get a deduction?
Yes for itemisers (subject to the 0.5% floor and AGI limits); they just do not qualify for the new non-itemiser deduction.
Are volunteer expenses deductible?
Out-of-pocket costs and 14¢ a mile driving for a charity are deductible if you itemise; the value of your time is not.
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