Which States Allow Charitable Deductions?

A charitable deduction reduces a taxpayer’s taxable income, lowering their overall tax liability. While federal law permits this for donations to qualified organizations, the availability and rules for such deductions vary significantly at the state level. This divergence means a donation yielding a deduction in one state might not provide any tax advantage in another. Some states mirror federal guidelines closely, while others offer more limited benefits or none at all.

States Allowing Charitable Deductions for Itemizers

A significant number of states with an income tax permit residents to deduct charitable contributions, but only if they choose to itemize deductions on their state tax returns. This action requires forgoing the state’s standard deduction. For a charitable deduction to be beneficial in these states, the total of all itemized deductions—including charitable gifts, mortgage interest, and state and local taxes—must exceed the standard deduction amount available for their filing status.

The process involves detailing these expenses on a state-specific schedule, which is analogous to the federal Schedule A. Most of these states use the taxpayer’s federal adjusted gross income (AGI) as a starting point for state tax calculations and largely conform to federal rules regarding what constitutes a qualified charitable organization. A donation to an IRS-qualified charity will therefore also qualify for a state deduction.

However, some states impose their own unique limitations that differ from federal law. While federal law allows for cash contribution deductions up to 60% of a taxpayer’s AGI, a state might set a lower threshold. For instance, California modifies this by capping the deduction for cash gifts at 50% of federal AGI. Other states may place specific dollar limits on the total amount of itemized deductions that can be claimed, which indirectly caps the benefit of charitable giving for high-income earners.

States with Charitable Deductions for Non-Itemizers

A few states have established a distinct benefit for taxpayers who do not itemize, allowing individuals who take the standard deduction to still receive a tax break for their charitable gifts. As of 2025, Arizona, Colorado, and Minnesota offer this type of non-itemizer benefit.

The rules governing these deductions are highly specific to each state. For example, Arizona allows non-itemizers to increase their standard deduction by a percentage of their charitable gifts. Colorado allows those taking the standard deduction to subtract their charitable contributions once the total amount of donations exceeds $500 for the year.

States Providing Charitable Tax Credits

Several states offer charitable tax credits, which operate differently from deductions and can provide a more direct financial benefit. A tax deduction lowers your taxable income, and the value of the deduction depends on your tax bracket. In contrast, a tax credit reduces your final tax liability on a dollar-for-dollar basis.

These state-level credits are targeted to encourage donations to specific types of state-approved nonprofit organizations. Rather than allowing a broad deduction for any qualified charity, these programs incentivize contributions to entities that address particular state policy goals. Common examples include credits for donations to organizations that provide scholarships for students attending private schools, support foster care services, or fund conservation efforts.

For instance, Arizona offers credits for donations to Qualifying Charitable Organizations (QCOs) that assist low-income residents. South Carolina provides a credit for contributions made to funds that support students with exceptional needs. Vermont offers a 5.0% tax credit for qualified charitable gifts, which is capped at a maximum annual credit of $1,000.

States Without a State-Level Charitable Deduction

Many residents cannot claim a state-level tax deduction for their charitable donations. These states fall into two primary categories.

The first group consists of states that do not levy a personal income tax. As of 2025, New Hampshire has repealed its tax on interest and dividend income, joining the states with no personal income tax:

• Alaska
• Florida
• Nevada
• New Hampshire
• South Dakota
• Tennessee
• Texas
• Washington
• Wyoming

Since these jurisdictions do not tax individual income, there is no system of deductions or credits against which to claim a charitable contribution.

A second group of states has a personal income tax but does not allow a deduction for charitable contributions. In these states, the tax laws do not conform to the federal rules that permit itemized deductions for charitable gifts, or they have been explicitly excluded. The states in this category are:

• Connecticut
• Illinois
• Indiana
• New Jersey
• Ohio
• Pennsylvania
• Rhode Island
• West Virginia