The standard deduction for 2026 is $15,000 for single filers and $30,000 for married filing jointly. You can subtract this amount from your taxable income without any documentation. Itemizing means listing specific eligible expenses — but you only benefit if they total more than the standard deduction.
About 90% of taxpayers take the standard deduction. Itemizing is most beneficial for homeowners with large mortgage interest, residents of high-tax states, and heavy charitable contributors.
2026 Standard Deduction Amounts
| Filing Status | 2026 Standard Deduction |
|---|---|
| Single | $15,000 |
| Married Filing Jointly | $30,000 |
| Head of Household | $22,500 |
| Married Filing Separately | $15,000 |
Additional deductions for age/blindness:
- Age 65+ or blind (single/HOH): +$1,600 per condition
- Age 65+ or blind (married): +$1,300 per spouse per condition
A married couple where both spouses are 65+ gets an additional $2,600, bringing their total standard deduction to $32,600.
Common Itemized Deductions and Limits
| Deduction | Limit |
|---|---|
| Mortgage interest | Loans up to $750,000 |
| State and local taxes (SALT) | $10,000 cap (property + income or sales tax) |
| Charitable contributions (cash) | Up to 60% of AGI |
| Charitable contributions (property) | Up to 30% of AGI |
| Medical expenses | Only the amount above 7.5% of AGI |
| Casualty/theft losses | Only from federally declared disasters |
| Investment interest | Up to net investment income |
When Itemizing Makes Sense
Run the math: Add up your potential itemized deductions. If the total exceeds your standard deduction, itemize. If not, take the standard deduction.
Profile likely to benefit from itemizing:
- Homeowner with large mortgage (first 5–10 years when interest is highest)
- Lives in high-tax state (CA, NY, NJ) — maxes out $10,000 SALT cap
- Makes significant charitable contributions
- Had major unreimbursed medical expenses (>7.5% of AGI)
Profile likely to take standard deduction:
- Renter with no mortgage interest
- Low or no state income tax (TX, FL, WA, etc.)
- Moderate charitable giving
- Standard health costs without a major medical event
Worked Example: Which Is Better?
Lisa, single, owns a home in New Jersey. She has:
- Mortgage interest: $11,400/year (on a $320,000 mortgage)
- Property taxes: $6,200
- State income tax paid: $4,800 → but SALT capped at $10,000
- Charitable contributions: $2,500
| Itemized Total | |
|---|---|
| Mortgage interest | $11,400 |
| SALT (capped) | $10,000 |
| Charitable | $2,500 |
| Total itemized | $23,900 |
| Standard deduction | $15,000 |
| Lisa should itemize | Saves: $8,900 in deductions → ~$2,003 in taxes at 22% bracket |
Worked Example: Standard Deduction Wins
Mark, single, rents an apartment in Texas (no state income tax). He has:
- Charitable contributions: $2,000
- No mortgage interest
- No state income tax
| Itemized Total | |
|---|---|
| Charitable | $2,000 |
| Total itemized | $2,000 |
| Standard deduction | $15,000 |
| Mark takes standard deduction | Saves $13,000 more in deductions |
The SALT Cap Impact on Itemizing
Before 2018, state and local taxes were fully deductible. The Tax Cuts and Jobs Act capped SALT at $10,000, eliminating the itemizing advantage for many middle-income homeowners in high-tax states.
Who is most affected: Homeowners in CA, NY, NJ, CT, IL with combined property + income tax above $10,000. Even with the cap, high mortgage interest may still push their itemized total above the standard deduction.
Above-the-Line Deductions: A Third Option
“Above-the-line” deductions reduce your AGI and are available whether you itemize or not. They are the best deductions because they reduce your taxable income before the standard/itemized choice:
| Above-the-Line Deduction | 2026 Limit |
|---|---|
| 401(k) / 403(b) contributions | $23,500 ($31,000 if 50+) |
| IRA contributions | $7,000 ($8,000 if 50+) |
| HSA contributions | $4,300 individual / $8,550 family |
| Student loan interest | Up to $2,500 |
| Self-employment health insurance | 100% of premiums |
| Self-employment tax deduction | 50% of SE tax |
Maximize these first, then decide between standard and itemized.
See the Tax Deductions Guide for a full list of deductions and credits available in 2026.
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