What are the limitations on charitable deductions?
Under the Internal Revenue Code, deductions for charitable contributions are subject to certain "percentage limitations" that limit the deductions that can be taken to a stated percentage of adjusted gross income ("AGI") in the year the deduction is taken. (Contributions in excess of these percentage limitations may be carried forward up to five subsequent years.) Because Fidelity Charitable is a public charity, the percentage limitations that apply are generally the most favorable charitable deductions available under IRS rules.
Deductions for contributions of long-term capital gain property (such as appreciated securities held for more than one year) are limited to 30% of AGI.
Deductions for all other contributions (including contributions of cash) are limited to 60% of AGI.
Beginning in the 2026 tax year, the tax benefits of itemized charitable deductions are limited to 35%, despite the 37% top marginal tax bracket for high-income earners. Also beginning in the 2026 tax year, itemizers who make charitable contributions will only be able to claim a tax deduction to the extent that their qualified contributions exceed 0.5% of their adjusted gross income (AGI).
Your ability to take itemized deductions may be subject to certain other limitations. Business entities using a Corporate Giving Account may have different tax considerations. Please contact your tax advisor to determine your tax deductibility limits.