2026 Brings big tax changes

2026 Brings new changes to tax laws

With 2026 underway, new federal tax laws have officially taken effect — and they’re changing the way charitable deductions work. These updates create important considerations for donors planning their giving strategies this year.

What’s changing

As of January 1, 2026, new rules reshape the way deductions are claimed:

• Itemizer Floor: A 0.5% threshold will be required before itemizers can claim deductions, adding a new layer of
  complexity.

• Top Bracket Deduction Cap: Taxpayers in the highest bracket will face a reduced deduction limit of 35%, down
  from 37%.

• Corporate Contribution Minimum: Corporations must contribute at least 1% of taxable income to qualify for
  deductions.

What you can do

Donors with outstanding pledges to Sharp or other nonprofit organizations — especially those in higher tax brackets — should review their giving plans early in the year to ensure they maximize available benefits under the new rules. Strategic timing and planning can help offset the impact of these changes.