New Tax Laws 2026

At LTS we know that the generosity of our donors is rooted in belief in our mission and values.   With significant tax changes that will take effect on January 1, 2026, that generosity may soon come with added benefits.  We want to make sure our community members have timely information in order to make the most of their annual giving.

What’s New:

• Larger Universal Charitable Deduction for those that do not itemize
  Good news for 90% of taxpayers who take the standard deduction!  Non-itemizing taxpayers will now be able to deduct up to $1,000 ($2,000 for couples) for charitable gifts. 

• New Minimum for Itemized Charitable Deductions
  Itemizers will face a “floor” of 0.5% of Adjusted Gross Income (AGI) before charitable deductions qualify. For example, if your AGI is $200,000, the first $1,000 of gifts won’t be deductible.

• New Limit for top earners
  Currently, top earners get a 37-cent tax benefit for every $1 deducted. Starting in 2026, that drops to 35 cents.

What Stays:

• Income tax brackets
  The new law permanently extends the current tax rates.

• Standard Deduction
  For 2025, it will be $15,750 for single filers and $31,500 for married couples filing jointly.

• Deduction limit for cash gifts
  You can still deduct cash gifts of up to 60% of your AGI if you itemize.

Key Takeaways:

• Timing of gifts: Accelerating gifts in 2025 may be worth considering.

• Thinking beyond cash: Non-cash gifts may lead to greater impact for you and LTS as legislation introduces new complexities for itemizers.  For instance, some supporters might consider a gift of stock or establishing a Donor Advised Fund in response to the changes.  Please explore our Ways to Give page for more information.
  

• Talk to your advisor: Of course, every donor’s situation is unique, and we always encourage you to consult with your tax advisor to determine what makes the most sense for you.

Your support matters

Every gift counts. Your contribution, no matter the size, helps students learn, grow, and thrive.

Please know how deeply grateful we are for your commitment to Long Trail School. Your generosity makes a lasting impact on our students and their futures, and we’re honored to have you as part of our community.

If you have any questions or would like to discuss your giving plans, please don’t hesitate to reach out. We’re here to help!