How to Value Donated Items for Taxes (Goodwill Guide)

If you itemize and drop off bags at Goodwill or the Salvation Army all year, you have to put a dollar figure on each bag. This guide shows how to value donated items for taxes the way the IRS expects. You get the fair market value rule, a table of real Goodwill and Salvation Army ranges for 15 common items, and a simple checklist for every drop-off.

Quick answer

• You, not the charity, set the value. The IRS wants "fair market value," which for used goods means thrift-store prices.
• Clothing and household items must be in good used condition or better. Worn-out items get no deduction.
• The Goodwill and Salvation Army value guides give typical ranges. Use them as a starting point, then pick a spot in the range that matches your item's condition.
• Keep a list, a photo, and a receipt for every drop-off. At $250 or more per donation, you need a written acknowledgment.
• Over $500 in total noncash gifts for the year means Form 8283. Over $5,000 for one item or group of similar items means a qualified appraisal.

What "fair market value" means

IRS Publication 561 defines fair market value (FMV) as "the price that property would sell for on the open market." It is the price a willing buyer and a willing seller would agree on, with neither forced to act and both knowing the facts.

For used clothing and household goods, the IRS is more specific. Publication 561 says the price buyers "actually pay in used clothing stores, such as consignment or thrift shops, is an indication of the value." So the question is not "What did I pay for this coat?" It is "What would this coat sell for at Goodwill today?"

That is why the number is usually small. A $90 sweater from five years ago might sell for $5 to $15 on a thrift rack. That $5 to $15 is your deduction, not $90.

The "good used condition or better" rule

Publication 526 is blunt: "You can't take a deduction for clothing or household items you donate unless the clothing or household items are in good used condition or better." Stained shirts, broken toasters, and torn couches are not deductible, even if the charity takes them.

There is one exception. If a single item is worth more than $500 and is not in good condition, you can still deduct it. But you must attach a qualified appraisal and Form 8283, Section B. In practice this rule almost never applies to closet cleanouts.

Both charity guides say the same thing in their own words. Goodwill of Northern New England writes: "The IRS requires an item to be in good condition or better to take a deduction." The Salvation Army guide says its ranges reflect an item's "relative age and quality."

How to value donated items for taxes: Goodwill and Salvation Army ranges

The two big charities publish value guides, and neither one sets your value for you. The Salvation Army guide states: "The Salvation Army does not set a valuation on your donation. It's up to you to assign a value to your item."

The table below pulls ranges from the Salvation Army Donation Value Guide and the Goodwill NNE Donation Value Guide. We checked both in August 2026. The guides change from time to time, so look at the current page before you file. Where Goodwill NNE had no range, we used the single figure from the Goodwill Industries valuation guide (PDF).

Item (adult sizes unless noted)	Salvation Army range	Goodwill range
Shirt or blouse	$3–$12	$4–$9
Pants or slacks	$4–$12	$4–$23
Dress	$4–$20	$6–$28
Sweater	$3–$16	$4–$13
Coat or jacket	$10–$62 (women's coat to men's overcoat)	$10–$45 (men's jacket)
Suit (2-piece)	$6–$62	$5–$96
Shoes (pair)	$2–$26	$3–$30
Book, hardcover	$1–$3	$0.59–$2
Book, paperback	$1–$2	$0.59–$2
Coffee maker	$4–$16	$5–$10
Microwave	$10–$50	$10 (GII single figure)
Vacuum cleaner	$16–$67	$5–$60
Sofa	$36–$207	$40–$395
Dresser	$21–$104 (with mirror)	$20–$80
Upholstered chair	$26–$104	$10–$75
TV, working	$78–$233	Not listed
Desktop computer	$104–$415 (system)	$150 (GII single figure)

A few notes on using this table:

• The low end is for plain, older, or budget-brand items. The high end is for name brands in near-new shape.
• Most closet items land in the bottom half of the range. Be honest about condition.
• The TV and computer ranges are wide because the guides cover many ages and sizes. An old tube TV or a ten-year-old PC belongs near the bottom, or may be worth almost nothing.
• Goodwill NNE suggests 30% of the original price for items not on its list. Treat that as a rough ceiling, not a rule.

Say you cleaned out a closet and dropped off 30 shirts, 10 pairs of pants, and 4 pairs of shoes, all in good shape but nothing fancy. At $4 a shirt, $5 for pants, and $6 for shoes, that is $120 + $50 + $24 = $194. That is a reasonable, defensible number. Claiming $12 per shirt for plain cotton tees is not.

How to record a drop-off, step by step

Good records are what turn a guess into a deduction you can defend. Do these steps for every trip, even a small one.

1. Make the list before you leave home. Write down each item and how many. "3 bags of clothes" is not enough. "12 men's shirts, 6 pairs of women's slacks, 2 winter coats" is.
2. Note the condition of each item. Use plain words: good, very good, excellent. Skip anything that is stained, torn, or broken. It does not count anyway.
3. Take a photo. Lay the items out on a bed or the garage floor and snap one picture with your phone. A photo proves the items existed and shows their condition.
4. Assign a value from the guide. Pick a spot in the range that matches your notes on condition. Write the per-item value and the total.
5. Get the receipt at the drop-off. Ask the attendant for a dated receipt. Many are blank, so fill in the item list yourself before you put it away.
6. Record the date, charity name, and address. Form 8283 asks for the charity's name and address. Write it on your list now so you are not hunting for it in April.
7. File it all in one place. Staple the receipt to the list, or keep a folder on your PC with the photo and a scan. A donation tracker spreadsheet works if you keep it up all year.

If you used ItsDeductible for years, this is the same routine, just without the website. Intuit shut ItsDeductible down on October 21, 2025. Our guide on ItsDeductible alternatives covers the options for keeping that habit going.

The $250, $500, and $5,000 thresholds

The IRS has three lines that matter for noncash gifts. Each one adds a layer of paperwork.

$250 or more in one donation. You need a "contemporaneous written acknowledgment" from the charity. The IRS says it must include the name of the organization, a "description (but not value)" of what you gave, and a statement about whether you received any goods or services in return. A blank drop-off slip does not meet this test unless the charity fills in the description. You must have the acknowledgment by the due date of your return, including extensions.

More than $500 in total noncash gifts for the year. You must file Form 8283 with your return. Section A covers items and groups of similar items valued at $5,000 or less. No appraisal is needed for Section A. You list each donation with the charity, the date, a description, how you got the item, what you paid, and the FMV. Our article on Form 8283 explained walks through each column.

More than $5,000 for one item or a group of similar items. You need a qualified appraisal from a qualified appraiser, and you use Section B of Form 8283. The word "similar" matters. The IRS instructions say to count all similar items together "even if items in the group were donated to more than one donee organization." Their example is books: $2,000 to one college, $2,500 to another, and $900 to a third adds up to $5,400, so Section B applies. Clothing works the same way. If all your clothing donations for the year top $5,000, you have crossed the line even if no single bag did.

One more change starting with tax year 2026. Under the 2025 tax law, itemizers can only deduct charitable gifts above 0.5% of adjusted gross income. On $80,000 of AGI, the first $400 of gifts does not count. Non-itemizers get a new deduction of up to $1,000 ($2,000 married filing jointly), but it is for cash gifts only. Donated goods do not qualify for it.

Common mistakes to avoid

• Using the purchase price. What you paid is not FMV. A $200 coat is a $20 to $40 coat at a thrift store.
• Counting worn-out items. If it would go in the "rag bin" at the store, it is not deductible.
• Writing "5 bags" on the receipt. The IRS wants a description of the items. Bags are not items.
• Skipping the acknowledgment on big drop-offs. One trip with a couch, a dresser, and a chair can top $250 fast. Ask for a real receipt with the items listed.
• Missing the $5,000 grouping rule. Ten small clothing drop-offs over a year can add up to more than $5,000 in one "group of similar items." Watch the running total.
• Guessing in April. Values assigned months later, with no list or photo, are the first thing an examiner will question. Record each drop-off the same week.
• Forgetting the charity's address. Form 8283 needs it. Many receipts show only a store name.

Where DonationLedger fits

DonationLedger is a Windows 10/11 desktop program that keeps this whole routine in one place. You enter each drop-off with items, condition, and a receipt photo, and a built-in FMV guide fills in the value. At year-end it prints a summary and a Form 8283 worksheet, and it exports TXF for TurboTax Desktop or CSV for H&R Block or your preparer. It also imports your old ItsDeductible CSV. It runs on your own PC, costs $49 one time, and has no subscription (see pricing). It is built for people who donate goods steadily and itemize. If you give once a year and take the standard deduction, a folder and this article are enough. The free Early Access Preview shows the core screens and lets you join the waitlist for the full launch. Download the free preview.

Frequently asked questions

Does Goodwill or the Salvation Army tell me what my donation is worth?

No. Both charities say the donor sets the value. Their published guides give typical thrift-store price ranges you can use as a starting point, but the number you claim is your responsibility.

Can I deduct clothes that are worn out or stained?

Generally no. The IRS only allows a deduction for clothing and household items in good used condition or better. The one exception is a single item worth more than $500 that comes with a qualified appraisal.

What paperwork do I need for a $300 bag of clothes?

For any single donation of $250 or more, you need a written acknowledgment from the charity. It must name the charity, describe what you gave, and say whether you got anything in return. Get it before you file.

When do I have to file Form 8283?

You file Form 8283 when your total noncash donations for the year are more than $500. Section A covers items or groups of similar items valued at $5,000 or less. Anything above $5,000 goes in Section B and needs a qualified appraisal.

Is there a donation value calculator I can use?

The Goodwill and Salvation Army guides are the closest thing to a free calculator. Donation tracking software, including DonationLedger, builds those ranges in so you pick an item and a condition and the value fills in.

Your next step is simple. Before your next drop-off, print the table above, make your list, and take one photo. Then read Form 8283 explained so you know what the form will ask for in April. This article is general information, not tax advice. Check IRS.gov or ask a tax professional about your situation.