The Non-Itemized Charitable Tax Deduction is Back in 2026

All taxpayers should be aware that a new version of the non-itemized charitable tax deduction that had surfaced (and disappeared) as the “universal charitable tax deduction” in recent years has been brought back from extinction and even enhanced. This very popular deduction returns for years after 2025 (i.e. starting for the 2026 tax year) and has no defined expiration date this time. In this article, we’ll cover the basics on this deduction, what it is, its history, why it is no longer “universal”, the new maximum per year that can be deducted, and why it was (and will be) so popular.

What is the “Non-Itemized Charitable Donation Tax Deduction”?

The “non-itemized charitable donation tax deduction”, formerly often referred to as the “universal charitable tax deduction” is unique in that even tax filers that claim the standard deduction could claim it, versus only those that itemized tax deductions. It was first implemented in COVID relief legislation and has been restored and expanded in Section 70424 of the “One Big Beautiful Bill Act” (OBBBA) legislation for tax years after 2025. Unlike the prior iteration, however, it is no longer 100% universal (more on that in a bit).

The non-itemized charitable donation deduction is “above-the-line”, meaning that it reduces taxable income.

What Types of Contributions Are Eligible for a Non-Itemized Deduction?

Note that in order to be deductible, the charitable contribution must be cash (or equivalent, such as check or credit card), and it must be made to a public (501(c)3)) charity (which you can confirm using the IRS’s Tax Exempt Organization Search tool). Donations to private foundations and donor-advised funds are not eligible for non-itemized deductions. And gifts of securities, property, or services (e.g. time) are also not eligible for non-itemized deductions.

How Much is the Maximum Non-Itemized Charitable Tax Deduction in 2026?

When it returns in 2026, the maximum non-itemized charitable tax deduction will be either $1,000 or $2,000, depending on filing status, as Section 70424 of the OBBBA states:

This section makes permanent and increases to $1,000 for single filers (from $300) or $2,000 for joint filers (from $600 for joint filers) the tax deduction for charitable contributions made by individuals who do not itemize their federal income tax deductions.

Note that “Married Filing Separately” and “Head of Household” filers have the same $1,000 maximum deduction as “Single” filers. So, the maximum non-itemized charitable tax deductions are:

• Single, Head of Household, Married Filing Separately: $1,000
• Married Filing Jointly: $2,000

What Documentation is Needed for the Non-Itemized Charitable Deduction?

Ask for and hold onto charitable donation receipts if you do not automatically receive one at the time of donation. If audited, you will need to present this for donations over $250 to verify your donation claim.

The Short History of the “Universal Charitable Tax Deduction”

The history behind the universal charitable donation tax deduction is very interesting. It was created as a part of the CARES Act (the first COVID relief bill in 2020). It was unique in that it allowed every taxpayer to deduct up to $300 in cash donations – whether they itemized or claimed the standard deduction. The 2nd COVID relief bill, the American Rescue Plan Act of 2021, increased the maximum universal donation deduction amount to $600 for “married filing jointly”. It also set an increased cap of $300 (up from $150) for “married filing separately” filers.

Sadly, the universal charitable donation tax deduction was not renewed after 2021, despite overwhelming popularity. According to the IRS, in the 2021 tax year, approximately 48 million households claimed the temporary universal charitable deduction, resulting in around $18 billion in additional charitable donations.

Why was the deduction so popular? The 2017 “Tax Cuts and Jobs Act” (TCJA) doubled the standard deduction and since then over 90% of taxpayers claim the standard deduction (instead of filing an itemized tax return), up from about 60% prior to the TCJA reform. Unfortunately for charities, charitable donations could previously only be claimed on itemized tax returns. In 2018, the first year post tax-reform, 14.8 million returns claimed a charitable deduction, according to the IRS. This was down from 37.9 million the year prior, a 61% decline, which was predictably catastrophic for charitable donations.

Bringing back and expanding the charitable tax deduction for standard deduction filers will hopefully help boost donations to charitable organizations close to pre-tax reform levels.

Why is the Non-Itemized Charitable Tax Deduction No Longer “Universal”? The New 0.5% Rule

In its previous iteration, the non-itemized charitable deduction was “universal”, but that’s no longer the case. Why? The OBBBA also created a new 0.5% AGI floor rule for itemized charitable deductions that also starts in 2026. This means that only those charitable contribution amounts that are above 0.5% of a filer’s adjusted gross income (AGI) are eligible for a deduction. So, technically, the non-itemized charitable deduction is only for standard deduction filers – and only for cash donations to public charities.

Itemized charitable deductions are eligible for a deduction as well, provided they meet eligibility criteria and are above the new 0.5% of AGI floor.

Getting Strategic About your Donations

If you claim the standard deduction on your taxes and are planning to donate this year at levels below the maximum non-itemized charitable deduction listed above – it could be a good move to wait until Jan 1, 2026 to make this year’s donation. That will allow you to claim the deduction, whereas a deduction in 2025 would not qualify.