Quick answer
What are the charitable deduction limits for 2026?
In 2026 you can deduct cash gifts to public charities up to 60% of AGI, appreciated stock to public charities or DAFs up to 30%, and appreciated stock to private foundations up to 20%. Excess carries forward five years. New this year, the first 0.5% of AGI is not deductible, and the top-bracket benefit is capped at 35%.
Key takeaways
- 01Limits depend on what you give and who receives it: 60%, 30% or 20% of AGI.
- 02Anything over the limit carries forward five years, so big gifts are rarely wasted.
- 03From 2026, itemizers lose the first 0.5% of AGI of giving.
- 04Donors in the 37% bracket now save about 35 cents per dollar given.
| Cash to public charity | 60% of AGI (made permanent) |
|---|---|
| Appreciated stock to public charity or DAF | 30% of AGI |
| Appreciated stock to private foundation | 20% of AGI |
| Carryforward | 5 years |
| 2026 floor | 0.5% of AGI |
| Top-bracket cap | Benefit limited to 35% |
The Short Answer
What are the charitable deduction limits for 2026?
In 2026 you can deduct cash gifts to public charities up to 60% of AGI, appreciated stock to public charities or DAFs up to 30%, and appreciated stock to private foundations up to 20%. Excess carries forward five years. New for 2026: the first 0.5% of AGI is not deductible, and top-bracket benefit is capped at 35%.
For why stock beats cash in the first place, see the pillar: Donate Appreciated Stock and Save a Fortune on Taxes.
The Limits
Which limit applies to your gift?
| Gift | Public charity / DAF | Private non-operating foundation |
|---|---|---|
| Cash | 60% of AGI (permanent under OBBBA) | 30% of AGI |
| Long-term appreciated stock, at FMV | 30% of AGI | 20% of AGI (public stock only gets FMV) |
| Appreciated stock, election to deduct basis | 50% of AGI | n/a |
| Short-term stock | Deduction limited to basis | Deduction limited to basis |
| Carryforward of excess | 5 years | 5 years |
Chart
AGI percentage limits by gift type
Limits interact. Gifts subject to the 30% cap also count against the overall limits, so large mixed cash-and-stock years need a tax preparer to run the ordering rules.
Run Your Numbers
How do the 2026 rules hit your stock gift?
Calculator
2026 stock-gift limit check
Stock to a public charity or DAF, held more than one year.
Non-deductible 0.5% floor
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Deductible this year (30% of AGI cap)
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Carried forward to future years
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Illustrative only; not tax advice. The 0.5% floor reduces total charitable deductions; how it is allocated against carryforwards follows IRS ordering rules. Assumes no other gifts.
Chart
Giving that is no longer deductible under the 0.5% floor
OBBBA
What else changed in 2026?
$100K deduction for a 37%-bracket filer
2026 rule
$35,000
Max federal benefit
OBBBA caps the value of itemized deductions at about 35 cents per dollar for the top bracket.
2025 rule
$37,000
Federal benefit
Before 2026, each deducted dollar was worth the full 37%.
Non-itemizers can deduct up to $1,000 (single) or $2,000 (joint) of cash gifts to operating charities. Stock gifts and DAF gifts do not count. The higher 2026 standard deduction and the larger SALT cap also change who itemizes, so check whether you itemize before planning a big gift.
"The floor and the cap shrink the deduction a little. They do not touch the biggest benefit of giving stock: the capital gain you never pay."
Where Embark fits
Over the 30% limit? Your extra shares can still work.
Give what you can deduct. Enter your ticker to price targeted income on the remainder.
- No AGI cap on what you contribute to Embark
- $0 tax at contribution, like a stock gift, but you keep the shares
- Targeted 10%+ income instead of a deduction that may expire
Run the numbers
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Carryforwards
What happens to the amount you cannot deduct?
It carries forward for up to five years and is used after that year's current gifts. Unused amounts after year five are lost. Very large gifts relative to income can outrun the window.
Five-Year Clock: If a $3M gift meets $500K of AGI, you can deduct $150K a year. Over six years (this year plus five) that is $900K; the remaining $2.1M is lost. Size the gift to your income, or spread it out.
A DAF helps time gifts; bunching charitable deductions helps clear the floor. Private shares have their own limits: see donating restricted or pre-IPO stock.
Keeping the Rest
What about the shares you are not giving away?
If a gift would outrun what you can deduct, give less and keep the rest. For the portion of a concentrated position you want to keep, Embark contributes the stock into an SPV as an in-kind partnership contribution under Section 721 mechanics, with $0 tax at contribution. The SPV targets 10%+ annual income while you keep the upside. Embark is a different tool with a different job. It does not give anything to charity and earns no deduction. Accredited investors only; income is targeted, not guaranteed, and contributed shares have a 3-year lock-up.
Many families pair the two: give the lowest-basis lots to a charity or DAF, and put the core holding to work. See the Embark 721 strategy and the Charitable Remainder Trust vs. Embark comparison.
FAQ
Frequently asked questions
What is the AGI limit for donating appreciated stock?
30% of AGI for gifts to public charities and DAFs, 20% for private non-operating foundations.
How long can I carry forward excess charitable deductions?
Five years after the year of the gift.
What is the 0.5% floor?
From 2026, itemizers can only deduct charitable gifts above 0.5% of AGI.
Is the 60% cash limit permanent?
Yes. OBBBA made the 60%-of-AGI limit for cash gifts to public charities permanent.
Can I deduct stock gifts if I take the standard deduction?
No. The new non-itemizer deduction only covers cash.
In what order are the limits applied?
Cash to public charities is counted first, then 30% gifts, then 20% gifts. Each lower bucket also has to fit under what is left of the higher limits.
Can I choose the 50% limit for stock gifts?
Yes. You can elect to deduct appreciated stock at cost basis instead of market value, under a higher 50% limit. That only helps when the gain is small.
Do carryforwards keep their original limit?
Yes. A carried-forward stock gift still counts against the 30% limit in later years, and the oldest carryforward is used first.
Sources
Primary sources
Cite this article
Embark Funds Research. “Charitable Deduction Limits for 2026: What Changed.” Embark Funds, updated October 15, 2026. https://www.embarkfunds.com/insights/charitable-deduction-limits-2026
Not tax, legal or securities advice: This article is educational. Charitable, securities and tax rules depend on your facts and your company's policies. Work with a CPA, an estate attorney and, for insiders, securities counsel before acting. Embark income figures are targets, not guarantees, and contributed shares have a 3-year lock-up.
Charitable Giving with Appreciated Stock Series
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Bunching Charitable Deductions in 2026
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Donate Appreciated Stock and Save a Fortune on Taxes This Year
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Donate Stock, Cash or Sell? The 2026 Checklist
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Hit the 30% Limit? There Is Another Way to Use the Stock.
Earn Income on the Shares You Cannot Deduct This Year
Donating stock removes shares from your life for good. For the position you intend to keep, Embark contributes it in-kind into an SPV ($0 tax at contribution, Section 721 mechanics) and targets 10%+ annual income. Accredited investors only.