
How the New Tax Law Changes Your Clothing Donation Deductions
The One Big Beautiful Bill just passed, and it changes the tax math for clothing donors. Here's what it means for your 2026 tax return.
May 20, 2026
Find donation centers near you

Goodwill operates as a network of 155 independent regional affiliates, each running its own stores and programs. When you drop off a bag of clothes at Goodwill, the affiliate sells what it can and uses the revenue to fund job training, career counseling, and employment placement in your area. In 2023, Goodwill served over 25 million people across the U.S. and Canada.
Most Goodwill stores accept walk-in donations during business hours. Many locations have a drive-through lane where staff will unload your car for you. Donation receipts are printed on the spot, and Goodwill provides an online valuation guide to help you estimate deductions at tax time.
Because each affiliate sets its own policies, what one Goodwill accepts may differ from another. When in doubt, call your local store before hauling large items. Clothing, shoes, and household goods are accepted nearly everywhere.
2,926 donation centers across 46 states
No. Goodwill is a donation-based nonprofit. You don't receive payment, but you do get a tax-deductible receipt for your records.
Items in sellable condition go to retail stores. Unsold clothing is sold in bulk to textile recyclers. All revenue funds local job training and career services.
Some regional affiliates offer pickup for large items like furniture. Most locations are drop-off only for clothing. Check with your local Goodwill for availability.
Goodwill prefers items in sellable condition. Heavily stained or damaged clothing is usually declined. Lightly worn items with minor flaws are generally fine.

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