The IRS recently announced their annual inflation adjustments for taxes, affecting more than 60 tax provisions. Some changes from the One Big Beautiful Bill Act (OBBBA) take place beginning tax year 2025 (thus changing the original 2025 rates), while some do not take effect until tax year 2026.
These tables may be helpful as you adjust your donor communications for tax changes that affect charitable giving.
One of the tax changes initiated by the OBBBA that particularly affects nonprofits is the new “above-the-line” charitable contribution, which will take effect beginning next year. In addition, the new law adds a floor for itemizers, also beginning in 2026.
| OBBBA New Charitable Contributions Deduction Laws for 2026 | |
| For Itemizers | For cash gifts, contributions must exceed 0.5% of taxpayer’s AGI to qualify. Deduction remains for gifts of cash up to 60% of AGI and up to 30% for appreciated property. For taxpayers in the highest bracket (37%), deductions capped at 35%. |
| For Non-Itemizers | Applies to cash gifts only. Up to $1,000 for single filers ($2,000 for married filing jointly) and not to gifts to donor advised funds. |
| Inflation Adjustments | ||
| Tax year 2025 | Tax year 2026 | |
| Standard Deduction | Single: $15,750* Married, filing jointly: $31,500* HOH: $23,625* | Single: $16,100 Married, filing jointly: $32,200 HOH: $24,150 |
| Alternative Minimum Tax | Single: $88,100 Married: $137,000 | Single: $90,100 Married: $140,200 |
| Estate Tax Exemption | Single: $13.99 million Married: $27.98 million | Single: $15 million Married: $30 million |
| Senior Deduction (New for 2025-2028)* | For both itemizers and non-itemizers. Individuals age 65 and older may claim additional $6,000 ($12,000 for married couples filing jointly). Applies to taxpayers with modified adjusted gross income of $75,000 or less ($150,000 for joint filers) and subject to phase out for those with higher incomes. | |
*Updated with OBBBA changes.
| Tax Brackets | ||
| Single | Tax year 2025 | Tax year 2026 |
| 10% | $0-$11,925 | $0-$12,400 |
| 12% | $11,926- $48,475 | $12,401-$50,400 |
22% | $48,476-$103,350 | $50,401-$105,700 |
24% | $103,351-$197,300 | $105,701-$201,775 |
32% | $197,301-$250,525 | $201,776-$256,225 |
35% | $250,526-$626,350 | $256,226-$640,600 |
37% | $626,351+ | $640,601+ |
Married, filing jointly | Tax year 2025 | Tax year 2026 |
10% | $0-$23,850 | $0-$24,800 |
12% | $23,851- $96,950 | $24,801-$100,800 |
22% | $96,951-$206,700 | $100,801-$211,400 |
24% | $206,701-$394,600 | $211,401-$403,550 |
32% | $394,601-$501,050 | $403,551-$512,450 |
35% | $501,051-$751,600 | $512,451-$768,700 |
37% | $751,601+ | $768,701+ |
HOH | Tax year 2025 | Tax year 2026 |
10% | $0-$17,000 | $0-$17,700 |
12% | $17,001- $64,850 | $17,701-$67,450 |
22% | $64,851-$103,350 | $67,451-$105,700 |
24% | $103,351-$197,300 | $105,701-$201,775 |
32% | $197,301-$250,500 | $201,776-$256,200 |
35% | $250,521-$626,350 | $256,201-$640,600 |
37% | $626,351+ | $640,601+ |
Capital Gains Tax Rates | ||
| Tax year 2025 | Tax year 2026 |
0% | $0 | $0 |
15% | Single: $48,350 | Single: $49,450 |
20% | Single: $533,400 | Single: $545,500 |
Click here to review more IRS tax inflation adjustments for 2026.
Teri Sullivan is vice president of marketing for Sharpe Group. You can connect with Teri at teri.sullivan@sharpegroup.org or via LinkedIn.
