The One Big Beautiful Bill Act (OBBBA) Makes Changes to Charitable Contribution Deduction Rules That Will Take Effect in 2026.
November 20, 2025
The One Big Beautiful Bill Act (OBBBA) makes changes to charitable contribution deduction rules that will take effect in 2026. If you itemize deductions, you may want to increase your giving for 2025 before the OBBBA’s 0.5% of adjusted gross income floor on charitable deductions goes into effect. Itemizers will be able to deduct only donations that exceed the floor. Also beginning in 2026, the OBBBA reduces the value of all itemized deductions for individuals in the highest tax bracket, generally from 37 cents to 35 cents per dollar. But nonitemizers will be able to deduct up to $1,000 in cash donations starting in 2026. Contact us now to discuss your giving strategies for 2025 and beyond.
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