The New Math of Deductions in 2026: Standard vs. Itemized, SALT, and Charitable Giving

Tax deductions haven’t disappeared — but in 2026, they demand more precision.

Between higher standard deductions, expanded State & Local Tax (SALT) caps with income phaseouts, and new charitable deduction rules, many households can no longer rely on last year’s strategy.

Higher Standard Deductions Change the Equation

For 2026, the standard deduction increased to:¹

• $32,200 for married filing jointly
• $16,100 for single filers
• $24,150 for heads of household

Additional amounts apply for taxpayers who are age 65 or older or blind.

These higher thresholds mean fewer households benefit from itemizing. For those near the line, timing deductions becomes more important than ever.

The SALT Cap Is Higher — With Caveats

The state and local tax (SALT) deduction cap increases to $40,400 in 2026. However, it phases out for taxpayers with modified adjusted gross income above $505,000 and fully reverts to $10,000 at higher income levels.²

This makes SALT planning highly income-sensitive. Households near the phaseout range may benefit from modeling income timing, capital gains, and deductions rather than assuming full deductibility.

Charitable Giving Rules Are More Nuanced

Starting in 2026:³

• Itemized charitable deductions are subject to a 0.5% of AGI floor
• Charitable deductions are capped at the 35% marginal tax rate, even for those in the 37% bracket
• Non-itemizers may claim an above-the-line deduction of $1,000 (single) or $2,000 (joint) for cash gifts, excluding donor-advised funds and private foundations

The result is a system that rewards intentional, planned giving rather than sporadic donations.

Qualified Charitable Distributions Remain Powerful

For taxpayers age 70½ or older, Qualified Charitable Distributions continue to be one of the most tax-efficient ways to give. In 2026, individuals may direct up to $111,000 per year from IRAs directly to qualified charities, reducing taxable income without itemizing.⁴

Bottom line: Deductions still matter, but assumptions are expensive. Modeling is essential.

Deductions still matter, but they require coordination. If you’d like help evaluating how these rules fit into your broader financial plan, a OnePoint advisor can help frame the conversation early.

Footnotes

1. Internal Revenue Service, Publication 501: Dependents, Standard Deduction, and Filing Information
   https://www.irs.gov/publications/p501
2. Internal Revenue Service, Topic No. 503 – Deductible Taxes (SALT)
   https://www.irs.gov/taxtopics/tc503
3. Internal Revenue Service, Publication 526: Charitable Contributions
   https://www.irs.gov/forms-pubs/about-publication-526
4. Internal Revenue Service, IRA Distributions to Charities (QCDs)
   https://www.irs.gov/pub/irs-drop/n-25-67.pd

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