Starting in 2026, the new tax regime allows non-itemizing taxpayers to claim a $1,000 deduction for charitable donations ($2,000 for married filing jointly), aimed at encouraging giving. However, itemized deductions for 2026 will be reduced by a new 0.5% of Adjusted Gross Income (AGI) floor, limiting the tax benefit for some.
New Non-Itemizer Charitable Deduction
90% of taxpayers use the standard deduction, but now in 2026, the non-itemizers are able to get a tax deduction for the charitable gifts. Up to $1,000 on single returns, up to $2,000 on married joint returns.
Is donation allowed in the new tax regime? No, taxpayers cannot claim Section 80G deductions for donations under the new tax regime. This means your donations still help causes, but will not reduce your taxes if you choose this regime.
Yes, Standard deduction of Rs. 50,000 or the amount of salary, whichever is lower, is available for both old and new tax regimes from AY 2024-25 onwards. In the new tax regime can I claim deductions under chapter-VIA like section 80C, 80D, 80DD, 80G etc.
Congress extended this deduction in 2021 and increased the amount of the deduction for joint filers to $600. This temporary measure expired at the end of 2021.
If you take the standard deduction, you can now also deduct up to $1,000 (single filers) or $2,000 (married couples filing jointly) for cash gifts to qualified operating charities, with inflation adjustments over time. Note: The deduction excludes donor-advised fund (DAF) contributions.
The One Big Beautiful Bill Act includes a game-changing shift in how charitable contributions are treated for both itemizers and non-itemizers. For the first time in years, starting in 2026 non-itemizers can claim a charitable deduction: up to $1,000 for single filers or $2,000 for married couples filing jointly.
Ans. In the old tax regime, the basic exemption limit for senior citizens is INR 3,00,000/- and for super senior citizens, it is INR 5,00,000/-. In the new tax regime, no income tax is payable upto the total income of INR 7 lakh.
A Senior/Super Senior citizen can claim a deduction upto Rs. 50,000/- u/s 80TTB in respect of interest income earned on savings bank accounts, bank deposits, or any deposit with the post office or co-operative banks.
2) Act, 2024 increased the amount of standard deduction from the existing Rs. 50,000 to Rs. 75,000 in a case where the assessee-employee computes the income tax under the new (default) tax regime prescribed under Section 115BAC(1A)(ii). Accordingly, this will apply to assessment year 2025-26.
New Income Tax Notices Issued:
80GGC deduction allows individuals to claim deduction on donations to a political party. Section 80GGC of Income Tax Act gives you the option to save a good portion of your income tax apart from HRA, medical allowance, PPF, etc.
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Although investments made in Equity Linked Saving Scheme (ELSS) mutual funds are eligible for tax deductions under Section 80C of the Income Tax Act, the SIP itself is not tax-free. Deductions are allowed up to ₹1.5 lakh per year.
But starting in 2026, the OBBBA reinstates the COVID-era deduction for cash donations by nonitemizers, subject to an increased annual limit of $1,000, or $2,000 for joint filers. (The limits were $300 and $600, respectively, for 2021 when this nonitemizer deduction was last available.)
You may deduct charitable contributions of money or property made to qualified organizations if you itemize your deductions. Generally, you may deduct up to 50 percent of your adjusted gross income, but 20 percent and 30 percent limitations apply in some cases.
Above-the-line deduction for non-itemizers ($1,000 / $2,000)
Individuals can deduct up to $1,000 (single) or $2,000 (married filing jointly) in charitable contributions without itemizing.
Effective for 2025 through 2028, individuals who are age 65 and older may claim an additional deduction of $6,000. This new deduction is in addition to the current additional standard deduction for seniors under existing law.
Is 80TTB allowed in the new tax regime? No, Section 80TTB benefits are not available under the new tax regime (Section 115BAC). To claim this deduction, senior citizens must opt for the old tax regime while filing their income tax returns.
Some of the most common federal tax deductions include:
Let us check how the NPS in new tax regime can compare against other popular financial products.
How to avoid paying higher-rate tax
Beginning in 2026, taxpayers who itemize will face a small change in how charitable deductions are calculated. Under the new law, you can only deduct the portion of your charitable contributions that exceeds 0.5% of your adjusted gross income (AGI). This 0.5% threshold functions like a floor.
Better tax benefits when itemizing: Any donations made in the tax year ending December 31, 2025 follow current tax law and are not subject to the 0.5% AGI threshold. If you plan to give to CAF this school year and you itemize your deductions, accelerating that contribution into 2025 may provide greater tax advantage.
Donations Eligible for 100% Deduction (Without Qualifying Limit) -