Given how this is one of if not the BIGGEST abused tax break by the rich (they give to their or their friends charities and then hire their kids or friends kids to run it) well now not only do they have a floor they have to hit of 0.5% but ALSO LIMITS the max to 37%. Below is an example using someone making $100k.
For example, if your adjusted gross income is $1 million, which is the 37% tax bracket, and you donate $100,000 to charity in 2025, the charitable deduction could save you $37,000, he wrote in a LinkedIn post last week.By comparison, the same $100,000 gift may only be worth $33,250 in 2026 under the two new provisions enacted via Trump’s legislation, he said.Here’s how it works: The 0.5% floor cuts the $100,000 gift by $5,000 to $95,000. The second new provision reduces the $95,000 donation by 2/37, which is $5,135.13. When added together, the limitations drop the deduction to $89,864.87. That figure multiplied by the 37% bracket is about $33,250, which is $3,750 less than $37,000.