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Short answer: To deduct a gift of stock in 2026, you must itemize. The new non-itemizer deduction covers cash only (IRS Tax Topic 506). Shares held over 1 year are generally deducted at fair market value, up to 30% of AGI for gifts to public charities. Stock Donator has processed stock gifts since 2011.
The IRS rules for stock gifts in 2026 at a glance
| Rule | What the IRS says | Source |
|---|---|---|
| Who can deduct a stock gift | Only donors who itemize on Schedule A. The $1,000 deduction ($2,000 on a joint return) for non-itemizers covers cash only. | IRS Tax Topic 506; IRS Publication 526 (2025) |
| Holding period | Held more than 1 year: deduct the fair market value. Held 1 year or less: generally deduct your cost basis. | IRS Publication 526 (2025) |
| AGI limit | 30% of AGI for appreciated stock given to 50% limit organizations, such as public charities, 20% for some other organizations. Other gifts in the same year can lower the stock limit. The excess carries forward up to 5 years. | IRS Publication 526 (2025) |
| 0.5% floor (new in 2026) | Gifts count only above 0.5% of your contribution base, which for most donors is their AGI. | Public Law 119-21, section 70425 |
| 2/37 limit (new in 2026) | Itemized deductions are cut by up to 2/37 once income, meaning taxable income plus itemized deductions, passes the start of the 37% bracket. | Public Law 119-21, section 70111 |
| Value of the shares | For shares with an active public market: the average of the highest and lowest quoted selling prices on the date of the gift. Other methods apply if there were no sales that day. | IRS Publication 561 (Dec 2025) |
| Receipt | A written acknowledgment from the charity for any gift of $250 or more. | IRS Publication 526 (2025) |
| IRS Form 8283 | Publication 526 requires it when your total deduction for all noncash gifts for the year is over $500. The form's instructions apply the $500 test to each noncash contribution. Publicly traded stock goes in Section A and needs no appraisal. | IRS Publication 526 (2025); Instructions for Form 8283 (Rev. Dec 2025) |
IRS Publication 526 is still the 2025 edition, so the 2026 changes come from the 2025 tax law (Public Law 119-21) and IRS Tax Topic 506.
Who can deduct a gift of stock in 2026?
Only donors who itemize. You report a stock gift as a noncash contribution on Schedule A (Form 1040). IRS Publication 526 (2025) gives it as line 12 on the 2025 form.
From 2026, people who take the standard deduction get a new charitable deduction. IRS Tax Topic 506 (updated 24 September 2026) says that beginning with tax year 2026, if you do not itemize, you may deduct up to $1,000 ($2,000 if filing jointly) of your cash contributions to certain qualified organizations. Shares are not cash, so a stock gift does not qualify. Cash given to a donor-advised fund or a supporting organization does not qualify either (26 U.S.C. 170(p), 2024 edition, as amended by Public Law 119-21).
If you will not itemize in 2026, a gift of shares earns no charitable deduction. Giving the shares instead of selling them can still help. As our donor page puts it, "you generally avoid capital gains tax on the growth" when you give stock held more than a year. That does not depend on itemizing, because you generally avoid the tax by not selling the shares, while the deduction needs itemizing.
Why does holding the shares more than 1 year matter?
The holding period decides what you deduct. IRS Publication 526 (2025) calls shares held more than 1 year capital gain property, and for those you can generally deduct the fair market value.
Shares held 1 year or less are ordinary income property. For them, the deduction is generally limited to your basis, which is usually what you paid.
Here is the math with round numbers. You hold shares worth $10,000 that you bought for $2,000 more than a year ago, and you itemize:
| Donate the shares | Sell, then donate the cash | |
|---|---|---|
| Gain you report | $0 | $8,000 |
| Charitable deduction | $10,000, within the limits below | $10,000, within the limits below |
Donating the shares gives the same $10,000 deduction, subject to the AGI limits below. When you donate the shares, you generally do not report the $8,000 gain. This page does not compute the tax, because it depends on your bracket.
How much stock can you deduct in one year?
IRS Publication 526 (2025) sets percentage limits based on your AGI:
- Appreciated stock to 50% limit organizations: up to 30% of your AGI. This IRS category includes public charities and some private foundations. If you give cash or other gifts in the same year, the limits interact: the stock limit is the smaller of 30% of your AGI or 50% of your AGI minus your gifts subject to the 60% or 50% limits (other than qualified conservation contributions).
- Appreciated stock to other qualified organizations (the IRS's second category): up to 20% of your AGI, or less.
- Cash to 50% limit organizations: Publication 526 (2025) gives 60% of your AGI. From 2026, the 2025 tax law changed how that cash limit counts your other gifts (Public Law 119-21, section 70425).
If your gifts pass a limit, you may be able to deduct the excess in each of the next 5 years until it is used up, but not after that. Generally, a carried-over gift keeps the same percentage limit it had in the year you gave it.
What changed in 2026 for donors who itemize?
The 2025 tax law (Public Law 119-21) added two limits from tax year 2026.
The 0.5% floor. Your charitable gifts are deductible only to the extent they exceed 0.5% of your contribution base for the year (section 70425). Your contribution base is your AGI, figured without any net operating loss carryback (26 U.S.C. 170(b)(1)(H)). With a contribution base of $200,000, the floor is $1,000, so $1,000 of your 2026 gifts gives no deduction. The law takes the floor from gifts of capital gain property, such as appreciated stock, before cash gifts (26 U.S.C. 170(b)(1)(I), added by section 70425).
That amount carries forward only from a year in which your gifts also exceed an AGI percentage limit, and only the part tied to those gifts. Otherwise it is lost.
The 2/37 limit for high incomes. Itemized deductions are reduced by 2/37 of the lesser of the deductions or the income above the start of the 37% bracket (section 70111). Income here is taxable income plus your itemized deductions.
For 2026 the 37% bracket starts at $768,700 for married couples filing jointly and $640,600 for single filers (Rev. Proc. 2025-32). Other filing statuses have their own starting amounts in the same revenue procedure. By our arithmetic, at the full reduction each deducted dollar saves 35 cents of tax instead of 37.
Our guide to the 2026 charitable deduction changes works through both limits with a $10,000 stock gift.
How does the IRS value donated stock?
For shares with an active public market, IRS Publication 561 (Dec 2025) says the fair market value of each share is the average price between the highest and lowest quoted selling prices on the valuation date. The valuation date is the date of the gift. If the stock did not trade on the valuation date, Publication 561 gives other methods, using sales on nearby dates or bid and asked prices.
Our page on IRS Publication 561 explains the method with a worked example.
When does a stock gift count for the tax year?
You can deduct a gift only in the year you actually make it, or in a later carryover year (IRS Publication 526 (2025)). IRS Publication 561 (Dec 2025) sets the date of the gift for stock certificates only:
- You deliver a properly endorsed certificate to the charity or its agent, with no conditions: the date of delivery.
- You mail the certificate and it is received through the regular mail: the date of mailing.
- You deliver the certificate to your bank or broker, acting as your agent, for transfer into the charity's name: the date the stock is transferred on the books of the corporation.
Neither publication sets a separate rule for electronic transfers between brokerages (DTC transfers). So start early. Your brokerage controls part of the timing, and Stock Donator's processing can take up to 5 business days. For 2026, start a stock gift through Stock Donator by 24 December. Gifts after that are still processed but may not complete before 31 December. Our year-end charitable giving strategies cover the December timing in more detail.
Which organizations can receive a deductible stock gift?
The charity must be a qualified organization. You can check one with the IRS Tax Exempt Organization Search at IRS.gov/TEOS.
IRS Publication 526 (2025) lists gifts you cannot deduct, including gifts to specific individuals and to political organizations and candidates.
What if you receive something for your gift?
You can deduct only the amount of your gift that is more than the value of the benefit you receive (IRS Publication 526 (2025)). If a $5,000 stock gift comes with a gala dinner worth $200, your deduction is $4,800.
What records do you need for a stock gift?
- A written acknowledgment for $250 or more. You must get it from the charity by the earlier of the date you file your return or its due date, including extensions (IRS Publication 526 (2025)).
- IRS Form 8283 above $500. If your total deduction for all noncash gifts for the year is over $500, you must complete IRS Form 8283 and attach it to your Form 1040 (IRS Publication 526 (2025)). The Instructions for Form 8283 (Rev. Dec 2025) apply the test to each gift: you file it if your deduction for each noncash contribution is more than $500.
- Section A, no appraisal. The Instructions for Form 8283 (Rev. Dec 2025) say publicly traded securities go in Section A in any amount. A qualified appraisal is not required for publicly traded securities (IRS Publication 526 (2025)).
What if your shares have lost value?
The IRS treats shares that have lost value differently. If the shares are worth less than you paid, IRS Publication 526 (2025) limits the deduction to their fair market value, and you cannot deduct the difference between your cost and that value.
Before you give shares like these, compare stock and cash donations.
How does a stock gift reach your charity through Stock Donator?
Stock Donator has processed stock gifts for nonprofits since 2011. You find your charity by its donate-stock link or in the charity directory. For most brokerages, Stock Donator sends the transfer request for you. When the gift is done, the receipt is emailed automatically. There is no fee for donors.
If your charity does not accept stock yet, send it our page for nonprofits. A nonprofit can say yes to your gift without opening a brokerage account.
General information, not tax advice. Talk to your tax adviser.
Deposit sent to Cedar School Fund