How Recent Tax Law Changes Passed in 2025 Affect Charitable Giving in 2026 and Beyond
NOTE: Alston Wilkes Society is not a tax expert, so be sure to check with your tax advisor about these changes!
In 2025, Congress approved several major tax law changes that now shape how individuals can give to charity beginning in the 2026 tax year. These updates were designed to expand access to charitable tax benefits and make tax‑efficient giving strategies more valuable for many donors.
Below is a clear, donor‑friendly summary of how these now‑enacted changes may affect your giving in 2026 and the years ahead.
A Universal Charitable Deduction Was Reinstated and Expanded
Most taxpayers do not itemize their deductions. Prior to the new law, that meant millions of generous donors received no tax benefit for their charitable gifts.
As part of the 2025 legislation, lawmakers reinstated and expanded a universal charitable deduction—similar to the temporary version offered during the 2020 CARES Act.
Starting in 2026, taxpayers who take the standard deduction may now deduct:
Up to $1,000 in charitable gifts (individual filers)
Up to $2,000 for married couples filing jointly
This change opens the door for many households to receive a tax benefit for charitable giving—something not available in previous years.
Qualified Charitable Distributions (QCDs) Remain a Top Strategy for Donors 70½+
The 2025 legislation did not alter Qualified Charitable Distributions (QCDs), but the broader tax changes make QCDs even more valuable going forward.
Beginning in 2025, the QCD limit rose to $108,000, and it increased again in 2026 to $111,000. Donors age 70½ or older may continue to give directly from their IRAs without counting that amount as taxable income.
Because some itemized charitable deductions became more restricted under the 2025 law, QCDs now offer comparatively stronger tax advantages for retirees who wish to give efficiently beginning in 2026.
The SALT Deduction Cap Was Raised Beginning in 2025—Affecting Itemizers in 2026
The 2025 bill significantly increased the State and Local Tax (SALT) deduction cap from $10,000 to $40,000 for those with adjusted gross income (AGI) under $500,000.
This change began in 2025, but many taxpayers will feel its impact when filing taxes in 2026 and beyond, especially in high‑tax states. With the higher SALT cap, more taxpayers may find it worthwhile to itemize again—opening additional opportunities to claim charitable deductions alongside other itemized deductions.
What These Changes Mean for Donors in 2026
More donors can now deduct charitable gifts, thanks to the universal charitable deduction for standard‑deduction filers.
Older donors have strong incentives to use QCDs, which remain one of the most tax‑efficient giving tools available.
More taxpayers may itemize again, particularly in high‑tax states where the SALT cap increase makes itemizing more beneficial.