A new law called the One Big Beautiful Bill Act (OBBBA) will change how charitable giving works starting in 2026. If you’re someone who gives generously to causes you care about, now is the time to plan ahead and make the most of your impact.
What's changing in 2026?
1. New minimums for tax deductions
You’ll only be able to deduct charitable gifts exceeding 0.5% of your income. For example, if your income is $300,000, you’ll need to give more than $1,500 to start claiming a deduction.
2. Limits for high-income donors
If you’re in the highest tax bracket at 37%, your deduction will be capped at 35%, slightly reducing the tax benefit of large gifts. For example, a donor in this tax bracket giving $100,000 may only receive a tax benefit of $35,000, not $37,000.
3. New deduction for standard filers
Even if you don’t itemize your taxes, you can still deduct up to:
- $1,000 if you file individually
- $2,000 if you file jointly
This applies only to cash donations to public charities. It excludes donor-advised funds and non-cash donations.
4. Estate and gift tax exemption increase
You’ll be able to pass on up to $15 million tax-free, starting in 2026. This means fewer estates will owe federal estate taxes.
Maximize your impact
2025 is a powerful year to give, as these changes will take effect in 2026. Your generosity matters, and with thoughtful planning, it can go even further.
- You can still take advantage of current tax rules.
- Use a charitable bunching (
bundling ) strategy (combining multiple years of giving into one) to maximize your deduction. - Focus on income tax planning, since most estates won't be taxed under the new exemption.
Connect with
- Review your giving strategy before the end of 2025.
- Explore personalized options that fit your financial goals.
- Make sure your gifts have the greatest possible impact.
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Donors must itemize deductions to receive a charitable income tax deduction. Charitable giving can result in tax, legal and financial consequences. Thrivent Charitable™ does not provide legal, accounting or tax advice. Consult your attorney or tax professional.
To ensure compliance with IRS requirements, be aware that any U.S. federal tax advice that may be contained in this article is not intended to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing and recommending another party to any transaction or matter addressed herein.