OBBB Act: Charitable Contributions for Individuals
- TOPC Potentia
- Jun 30
- 2 min read
June 30, 2026
On July 4, 2025, President Trump signed the One Big Beautiful Bill (OBBB) Act into law. The OBBB Act includes a number of tax changes affecting individuals, including modifications to the deduction for charitable contributions.
Background
Generally, individuals may claim an itemized deduction for contributions made to qualified charitable organizations. Taxpayers who take the standard deduction were generally not eligible to deduct charitable contributions.
Under the 2017 Tax Cuts and Jobs Act (TCJA), cash contributions to public charities were deductible up to 60% of an individual’s AGI for tax years 2018 through 2025. Beginning in 2026, that limit was scheduled to revert to 50%; however, OBBB Act made the 60% AGI limit permanent instead.
Contributions that exceed the applicable percentage limit may be carried forward for up to five years.
OBBB Act Changes Effective in 2026
For Non-Itemizers:
An above-the-line deduction for non-itemizers: Beginning with tax year 2026, if a taxpayer does not itemize, he/she may deduct up to $1,000 cash contributions for single filers ($2,000 for married filing jointly) for certain charitable contributions.
For Itemizers:
Permanent 60% AGI limit for cash donations: The OBBB Act permanently keeps the deduction limit for cash donations to qualified public charities at 60% of adjusted gross income (AGI).
0.5% contribution-base floor for itemizers: Itemizers may deduct charitable contributions only to the extent they exceed 0.5% of their contribution base.
The deduction for high earners in the 37% tax bracket (income over $640,060 for single filers and $768,700 for joint filers) is limited to 35%.
Unchanged Other Key rules
Excess charitable contributions can carryforward up to 5 years
Eligible organizations (501(c)(3) etc. https://apps.irs.gov/app/eos/)
AGI percentage system (60%, 30%, etc.)
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