Want the full rulebook - which organizations are 60 percent versus 30 percent, how appreciated-stock gifts beat cash, the new 0.5 percent floor and non-itemizer deduction, carryover mechanics, donor-advised funds, QCDs, and the Form 8283 substantiation rules? Read the companion guide.
Read the Charitable Contribution Deduction Guide →
Short Answer
Under IRC §170, an itemizer's charitable deduction is capped at a percentage of AGI: 60 percent for cash to public charities, 50 percent for other gifts to public charities, 30 percent for long-term capital gain property (and for gifts to private foundations), and 20 percent for capital gain property to private foundations. Anything over the limit carries forward 5 years. Beginning in tax year 2026, itemizers also lose the first 0.5 percent of AGI of giving (the new floor), while non-itemizers gain a new $1,000 / $2,000 above-the-line deduction for cash gifts. The itemized total goes on Schedule A line 11.
2026 and 2025 Charitable Deduction Parameters
Charitable Contribution Deduction — IRC §170 Parameters
| Item | Tax Year 2026 | Tax Year 2025 |
|---|
| Cash to public charities (§170(b)(1)(G)) | 60% of AGI (permanent, OBBBA) | 60% of AGI |
| Other gifts to public charities (§170(b)(1)(A)) | 50% of AGI | 50% of AGI |
| Capital gain property to public charities (§170(b)(1)(C)) | 30% of AGI (FMV) | 30% of AGI (FMV) |
| Gifts to private foundations (§170(b)(1)(B)) | 30% of AGI | 30% of AGI |
| Capital gain property to private foundations (§170(b)(1)(D)) | 20% of AGI | 20% of AGI |
| 0.5% of AGI floor for itemizers (§170(b)(1)(I)) | Yes (new, OBBBA) | No |
| Non-itemizer above-the-line deduction (§170(p)) | $1,000 / $2,000 MFJ (new, OBBBA) | None |
| Carryover for excess contributions (§170(d)) | 5 years | 5 years |
| Reporting location | Schedule A line 11-13 (itemizers); Form 1040 above the line (non-itemizers) | Schedule A line 11-13 |
The One Big Beautiful Bill Act (P.L. 119-21) made the 60 percent cash limit permanent, added the 0.5 percent of AGI floor for itemizers under §170(b)(1)(I), and restored a permanent above-the-line deduction for non-itemizers under §170(p), all effective for tax years beginning after December 31, 2025. Sources: IRC §170 and IRS Publication 526.
How the IRC §170 Calculation Works
The tool applies the percentage limits in the order IRS Publication 526 does, then runs the new 2026 floor. For the full rules - which organizations are which, how appreciated property is valued, the carryover mechanics, and substantiation - see the Charitable Contribution Deduction Guide.
Step 1: Pick the Path (Itemize vs Standard) Confirmed
Charitable gifts only reduce tax for itemizers, except for the 2026 non-itemizer deduction. If you take the standard deduction in 2026, the tool computes the §170(p) above-the-line deduction (cash to public charities only, capped at $1,000 or $2,000). For 2025 standard-deduction filers, the charitable benefit is zero.
Step 2: Apply the AGI Percentage Ceilings Confirmed
Your contribution base is AGI. Cash to public charities is allowed up to 60 percent of AGI; non-cash property to public charities up to 50 percent; long-term capital gain property at FMV up to 30 percent; gifts to private foundations up to 30 percent (20 percent for capital gain property). The categories interact so the total to public charities cannot exceed 60 percent of AGI.
Step 3: Run the 0.5 Percent Floor (2026 Itemizers) Confirmed
For tax year 2026, §170(b)(1)(I) disallows the first 0.5 percent of AGI of otherwise-deductible giving. The statute applies the floor to the least tax-advantaged categories first, so it generally reduces your deduction by a flat 0.5 percent of AGI and preserves the cash deduction. The floor does not apply in 2025.
Step 4: Compute the Carryover (§170(d)) Confirmed
Contributions above the AGI ceilings are not lost: they carry forward up to 5 years, keeping their original category and percentage limit. The tool reports the current-year deduction and the amount that carries to future years.
Step 5: Report on Schedule A Line 11 Confirmed
Cash gifts go on Schedule A line 11, non-cash on line 12 (Form 8283 over $500), carryover on line 13, and the total on line 14. The 2026 non-itemizer deduction is taken directly on Form 1040 above the line, with no Schedule A.
Frequently Asked Questions
How much of my charitable contributions can I deduct?
For an itemizer, IRC §170 limits the annual charitable deduction to a percentage of your adjusted gross income (your contribution base). Cash gifts to public charities are deductible up to 60 percent of AGI; other gifts to public charities up to 50 percent; long-term capital gain property given at fair market value up to 30 percent; gifts to private foundations up to 30 percent (20 percent for capital gain property). Contributions above the limit carry forward for up to 5 years. Beginning in tax year 2026, itemizers must also clear a new 0.5 percent of AGI floor: only the portion of your contributions that exceeds 0.5 percent of AGI is deductible. The deduction goes on Schedule A line 11.
What is the new 0.5 percent of AGI floor for 2026?
The One Big Beautiful Bill Act added IRC §170(b)(1)(I), a 0.5 percent of AGI floor on the itemized charitable deduction effective for tax years beginning after December 31, 2025. Starting in 2026, your charitable contributions are deductible only to the extent they exceed 0.5 percent of your contribution base (AGI). For a taxpayer with $200,000 of AGI, the first $1,000 of giving (0.5 percent of $200,000) is not deductible; only the excess counts. The floor applies to itemizers, not to the non-itemizer above-the-line deduction. The statute applies the floor to the least tax-advantaged categories first, so it generally preserves the deduction for cash gifts.
Can I deduct charitable gifts if I take the standard deduction?
For tax year 2025, no: charitable contributions are an itemized deduction and provide no benefit if you take the standard deduction. For tax year 2026 and later, the One Big Beautiful Bill Act restored a permanent above-the-line deduction under IRC §170(p) for non-itemizers: up to $1,000 (single, head of household, married filing separately, or qualifying surviving spouse) or $2,000 (married filing jointly). It covers cash gifts to public charities only, not gifts to donor-advised funds or private non-operating foundations, and the amount does not carry forward.
What is the 60 percent cash limit?
IRC §170(b)(1)(G) allows a deduction for cash contributions to public charities up to 60 percent of your contribution base (AGI). This higher cash limit, originally enacted by the 2017 Tax Cuts and Jobs Act and set to expire after 2025, was made permanent by the One Big Beautiful Bill Act. The 60 percent limit applies only to cash given to qualifying public charities; gifts of property and gifts to private foundations use lower limits (50 percent, 30 percent, or 20 percent).
How are gifts of appreciated stock or property limited?
A gift of long-term capital gain property (held more than one year) to a public charity is generally deductible at fair market value, limited to 30 percent of AGI under IRC §170(b)(1)(C). You do not recognize the built-in gain, which is why donating appreciated stock is often more tax-efficient than selling it and donating cash. Capital gain property given to a private foundation is limited to 20 percent of AGI (§170(b)(1)(D)) and is generally deductible only at basis. Property held one year or less, or ordinary-income property, is deductible at the lower of basis or fair market value and falls under the 50 percent limit.
What happens to contributions over the AGI limit?
Under IRC §170(d)(1), charitable contributions that exceed the applicable AGI percentage limit in the current year are carried forward and deductible in each of the next 5 tax years, in order of time, subject to the same percentage limits in each carryover year. Each category keeps its own character on carryover (a 30 percent gift carries as a 30 percent gift). Qualified conservation contributions carry forward for 15 years. The non-itemizer §170(p) deduction does not carry forward.
Where does the charitable deduction go on my return?
For itemizers, total charitable contributions are reported on Schedule A (Form 1040), line 11 for gifts by cash or check, line 12 for gifts other than by cash or check (with Form 8283 required for non-cash gifts over $500), and line 13 for carryover from prior years. The total flows to line 14. The non-itemizer deduction under §170(p) for 2026 is taken above the line, directly on Form 1040, and does not require Schedule A.
What records do I need to substantiate a donation?
Any cash gift requires a bank record or written communication from the charity. A single gift of $250 or more requires a contemporaneous written acknowledgment from the charity under IRC §170(f)(8), obtained before you file. Non-cash gifts over $500 require Form 8283; non-cash gifts over $5,000 generally require a qualified appraisal. Gifts to donor-advised funds need an acknowledgment that the sponsoring organization has exclusive legal control. Without proper substantiation the deduction can be denied entirely, even if the gift was genuinely made.
Does a qualified charitable distribution (QCD) count here?
No. A qualified charitable distribution is a direct transfer from an IRA to a charity by a taxpayer age 70 and a half or older (up to $108,000 in 2025, indexed). A QCD is excluded from income and is not a charitable deduction, so it does not appear on Schedule A and is not subject to the §170 percentage limits or the new 0.5 percent floor. A QCD can satisfy a required minimum distribution. Because it bypasses the deduction entirely, a QCD is often more valuable than a deductible cash gift, especially for taxpayers who take the standard deduction.
What to Do Next
If You Itemize and Give Cash
Run this calculator with your cash gift and AGI to see the 2026 floor effect and whether you clear the 60 percent ceiling. Then confirm itemizing beats the standard deduction using the Itemize vs Standard Deduction Calculator. The Itemized Deductions List walks through every Schedule A line that stacks with your charitable total.
If You Take the Standard Deduction
For 2026, you can still deduct up to $1,000 ($2,000 MFJ) of cash gifts above the line under §170(p). Set Deduction Method to standard, Tax Year to 2026, and enter your cash gifts to see the amount. Keep the gifts in cash to a public charity, not a donor-advised fund, to qualify. Read the Standard Deduction Guide for the 2026 amounts.
If You Are Giving Appreciated Stock
Enter the fair market value in the capital gain property field to see the 30 percent ceiling and any carryover. Giving the shares directly avoids the capital gains tax you would owe if you sold them first. Confirm your AGI with the AGI & MAGI Calculator so the percentage limits are accurate.
If You Are Over Age 70 and a Half
Consider a qualified charitable distribution from your IRA instead of a deductible gift. A QCD is excluded from income, satisfies your RMD, and sidesteps both the percentage limits and the new 0.5 percent floor. Read the netting and coordination rules in the Charitable Contribution Deduction Guide.