Charitable Donation Deduction — OBBBA $1,000/$2,000 + 0.5% AGI Floor (2026)

Quick summary

The Charitable Donation Deduction Calculator handles every IRS rule that determines your tax savings: 60% AGI limit on cash gifts to public charities (made permanent by OBBBA), 30% AGI on appreciated stock at FMV (no capital gains owed), 20% AGI on appreciated property to private foundations, and the new OBBBA 2026 above-the-line $1,000 single / $2,000 MFJ deduction for non-itemizers (cash to public charities only).

Critical 2026 update: itemizers face a NEW 0.5% AGI floor — only contributions exceeding 0.5% of AGI are deductible. Example: $200K AGI = $1,000 floor; you must give over $1,000 before any deduction kicks in. Combined with the 39% top-bracket cap, OBBBA significantly tightened high-income charitable planning.

Use it to compare cash vs. stock vs. DAF strategies, time donations across years to maximize the AGI floor benefit, and decide whether bunching multiple years of giving makes itemizing worthwhile.

Donation amount

Your AGI

Donation type

Recipient type

Filing status

Itemizing or standard deduction?

Your marginal tax rate

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How to use

1 Enter the donation amount (FMV at time of gift). Use IRS Pub 561 valuation guidance for noncash.
2 Choose donation type: cash (highest AGI limit), appreciated stock/property (FMV deduction + skip cap gains), or other property.
3 Choose recipient: public charity (most generous limits), donor-advised fund (similar but excluded from OBBBA above-line), or private foundation (lower limits).
4 Enter your AGI and choose itemizing yes/no. If no, calculator applies the OBBBA $1,000/$2,000 above-line cap. If yes, calculator applies the 0.5% AGI floor.
5 Enter your federal marginal rate. Click Calculate to see deductible this year, carryforward to future years, tax savings, and effective cost (donation - tax saved).

2026 Charitable Deduction — OBBBA Two Big Changes

Change	2025	2026 (OBBBA)
Above-the-line for non-itemizers	None	$1,000 single / $2,000 MFJ for cash to public charities
Itemizer floor	None	0.5% of AGI — only contributions over this amount deductible
Top-bracket cap	37%	Capped at 35% effective benefit (OBBBA)
60% AGI cash limit	Sunset risk after 2025	Made permanent by OBBBA

2026 AGI Limits by Donation Type

Donation Type	To Public Charity	To Private Foundation
Cash	60% of AGI	30% of AGI
Appreciated capital gain property (LT)	30% of AGI (FMV deduction)	20% of AGI (basis only)
Ordinary-income property (inventory, depreciable)	50% of AGI (basis only)	30% of AGI (basis only)
Excess	5-year carryforward	5-year carryforward

Why Donating Appreciated Stock Beats Cash

If you have a stock with $50,000 of long-term gain, two strategies:

Strategy	Tax Outcome	Charity Receives
Sell stock + donate cash	Pay 23.8% LTCG ($11,900) + deduct $50,000 (saves $11,000 at 22%) → net $900 tax cost	$50,000
Donate stock directly	$0 capital gains + deduct $50,000 FMV (saves $11,000 at 22%) → net $11,000 tax savings	$50,000

Net difference: $11,900 in YOUR pocket by donating stock instead of cash. Charity gets the same $50,000 either way (charities are tax-exempt — they sell the stock without paying gains).

Documentation Requirements

Donation Size	Required Documentation
Under $250 cash	Bank record, canceled check, or receipt
$250+ cash or noncash	Written acknowledgment from charity
$500-$5,000 noncash	Form 8283 Section A
$5,000-$500,000 noncash	Form 8283 Section B + qualified appraisal
Over $500,000 noncash	Above + appraisal attached to return
Vehicles over $500	Form 1098-C from charity

Bunching Strategy Under OBBBA 2026

With the new 0.5% AGI floor, bunching multiple years of giving into one tax year is more valuable than ever. Example: $200K AGI, plan to give $5,000/year. Annual giving: floor $1,000 → deduct $4,000/yr × 22% = $880 saved/yr. Bunching $25,000 every 5 years: floor $1,000 → deduct $24,000 once × 22% = $5,280 saved every 5 years (up from $4,400 annual = $880 × 5). Bunching saves $880 over 5 years just from clearing the floor more efficiently.

Qualified Charitable Distribution (QCD) — Special Tool for IRA Owners 70½+

If you're age 70½+, you can transfer up to $108,000 (2025 limit; 2026 expected ~$110K) directly from your IRA to a public charity as a Qualified Charitable Distribution (QCD). The QCD: (1) counts toward your RMD, (2) is excluded from your taxable income (better than a deduction), (3) avoids ALL AGI-related side effects (Medicare IRMAA, SS taxation, NIIT). DAFs DO NOT qualify for QCD.

FAQ

Q How much can I deduct for charitable donations in 2026?

Cash gifts to public charities: up to 60% of AGI (made permanent by OBBBA). Appreciated stock to public charities: up to 30% of AGI at FMV. Cash to private foundations: 30% of AGI. Excess carries forward 5 years. NEW 2026: itemizers face a 0.5% AGI floor — only contributions exceeding this are deductible.

Q Can non-itemizers deduct charitable donations in 2026?

YES — for the first time since 2021. OBBBA created a NEW above-the-line deduction: $1,000 single / $2,000 MFJ for direct cash gifts to public charities. Important: donor-advised funds (DAFs), private foundations, and supporting organizations are EXCLUDED from this deduction.

Q What is the 0.5% AGI floor for itemizers?

Starting 2026, OBBBA imposes a 0.5% AGI floor on itemized charitable contributions — only the excess above 0.5% of your AGI is deductible. Example: $200K AGI = $1,000 floor. Donate $5,000 → deduct $4,000. Designed to discourage marginal small-giving inflation; encourages bunching across years.

Q Should I donate cash or appreciated stock?

Almost always appreciated stock if you've held it >1 year. You skip the capital gains tax (saves 15-23.8% federal + state) AND get a deduction for full FMV — combined saves more than donating cash. The charity is tax-exempt, so they receive the same value either way.

Q Are donations to GoFundMe tax deductible?

Generally NO — GoFundMe campaigns for individuals are personal gifts (not deductible). Only campaigns by registered 501(c)(3) public charities qualify. Look for the "Tax Receipt" indicator on the campaign and the charity's EIN. Most personal medical, memorial, or family-fundraiser GoFundMes are not deductible.

Q What is a Qualified Charitable Distribution (QCD)?

For IRA owners age 70½+: directly transfer up to $108,000 (2025) per year from your IRA to a public charity. Counts toward RMD. Excluded from taxable income — better than a deduction because it lowers AGI (avoids Medicare IRMAA, SS taxation, NIIT). Donor-advised funds DO NOT qualify.

Q How do I donate stock to charity?

Initiate a stock transfer through your brokerage to the charity's brokerage account (charity provides DTC instructions). Track the FMV at gift date for deduction. Required: Form 8283 Section A for $500-$5K, Section B + appraisal for $5K+. Most charities partner with Schwab, Fidelity, Vanguard for direct stock acceptance.

Q When is a qualified appraisal required?

For noncash donations exceeding $5,000 in value (excluding publicly traded stock, which uses the average of high/low on gift date). The appraisal must come from a qualified appraiser meeting USPAP standards. Failure to obtain the appraisal disallows the deduction entirely. Form 8283 Section B Part III must be signed by the appraiser.