Short answer: take whichever amount is larger. For tax year 2026, the standard deduction is $16,100 for single filers, $32,200 for married couples filing jointly, and $24,150 for heads of household. If your itemized deductions on Schedule A add up to more than that figure, itemizing saves you money; if they do not, the standard deduction wins. Most filers take the standard deduction, but homeowners in high-tax states and generous givers are the most likely to come out ahead by itemizing.
What the standard deduction is
The standard deduction is a fixed dollar amount you subtract from your income before tax is calculated. You need no receipts or qualifying expenses to claim it — every filer gets it. The IRS adjusts the amount each year for inflation, and the One Big Beautiful Bill Act, signed in July 2025, made the higher standard deduction levels permanent rather than letting them drop after 2025.
The 2026 amounts apply to income earned in 2026, on the return you file in early 2027. Filers who are 65 or older or blind get an additional amount on top: $2,050 for single filers and heads of household, or $1,650 per qualifying spouse for joint filers. Seniors may also qualify for a separate bonus deduction of up to $6,000 per person for tax years 2025 through 2028.
What itemizing means
Itemizing means listing your qualifying deductions one by one on Schedule A instead of taking the flat amount. The main categories are:
- State and local taxes (SALT): state income taxes (or sales taxes, but not both) plus property taxes, combined under a single cap. For 2026, that cap is $40,400 for most filers and $20,200 for married couples filing separately. The cap phases down once modified adjusted gross income passes $505,000, but never below $10,000.
- Mortgage interest: interest on up to $750,000 of debt used to buy, build, or substantially improve your home ($375,000 if married filing separately). See how your interest breaks down on our Mortgage Calculator and Loan Amortization Calculator.
- Charitable gifts: donations to qualifying charities. Starting in 2026, itemizers can deduct only the portion of charitable gifts above 0.5% of their adjusted gross income.
- Medical and dental expenses: only the portion above 7.5% of adjusted gross income counts.
- Casualty losses: only losses from federally declared disasters qualify.
You cannot claim both: it is the standard deduction or itemized deductions, never both on the same return.
Worked example: when itemizing wins — and when it does not
Take a single filer with $85,000 of adjusted gross income and a 22% marginal tax rate. She pays $9,500 a year in mortgage interest, $6,000 in property tax, $5,500 in state income tax, and gives $1,200 to charity.
First, SALT: $6,000 + $5,500 = $11,500, well under the $40,400 cap, so the full amount counts. Next, the charitable floor: 0.5% of $85,000 is $425, so only $1,200 − $425 = $775 of her giving is deductible. Her itemized total is:
| Deduction | Amount |
|---|---|
| Mortgage interest | $9,500 |
| SALT (property + state income tax) | $11,500 |
| Charitable gifts above the 0.5% floor | $775 |
| Total itemized | $21,775 |
Against the 2026 single standard deduction of $16,100, itemizing wins by $21,775 − $16,100 = $5,675, worth $5,675 × 22% = $1,248.50 in tax saved.
Without the mortgage, her itemized total falls to $11,500 + $775 = $12,275 — which is $3,825 below the standard deduction. In that case, itemizing would cost her money, and the standard deduction is the right call. That is the whole decision in one comparison: add up Schedule A, compare it with the standard amount for your filing status, and take the bigger number.
Common mistakes to avoid
- Itemizing out of habit. The standard deduction has roughly doubled since 2017, so many people who itemized for years no longer benefit. Recalculate every year instead of assuming.
- Forgetting the SALT cap. You cannot deduct your full state tax bill if it exceeds $40,400 — only the capped amount counts toward your Schedule A total.
- Claiming both methods. Taking the standard deduction and also listing itemized deductions is not allowed. Pick one.
- Ignoring state rules. States set their own deductions separately, so your federal choice does not always dictate your state return.
- Overlooking the mortgage-interest limit. Interest on debt above $750,000 is not deductible, and home-equity loan interest counts only if the loan bought, built, or improved the home.
If you are weighing a home purchase, the mortgage-interest piece of this math is usually the deciding factor — run the numbers on our Mortgage Calculator first. To see how deductions change your take-home pay, try our Salary Calculator. For the official rules and current amounts, see the IRS and the Consumer Financial Protection Bureau for mortgage guidance.
Frequently asked questions
Should I itemize or take the standard deduction?
Take whichever is larger. Add up your Schedule A deductions — mortgage interest, state and local taxes up to the 2026 cap of $40,400, charitable gifts above 0.5% of your income, and deductible medical expenses — and compare the total with the standard deduction for your filing status ($16,100 single, $32,200 joint, $24,150 head of household for 2026). The bigger number wins.
What is the standard deduction for 2026?
For tax year 2026, it is $16,100 for single filers and married couples filing separately, $32,200 for married couples filing jointly, and $24,150 for heads of household. Filers 65 or older or blind add $2,050 (single or head of household) or $1,650 per qualifying spouse. These amounts apply to the return filed in early 2027.
Does the SALT cap still matter in 2026?
Yes, but far less than it did before 2025. The One Big Beautiful Bill Act raised the SALT cap from $10,000 to $40,000 for 2025 and $40,400 for 2026 ($20,200 for married filing separately). State income or sales taxes plus property taxes are combined under that single cap, and it phases down above $505,000 of modified adjusted gross income, never below $10,000.
Can I switch between the standard deduction and itemizing each year?
Yes. You make the choice fresh on every return, and you should. A year with a new mortgage, a move to a high-tax state, or a large charitable gift can flip the answer, while a paid-off mortgage or a move to a low-tax state can flip it back. Compare both totals each filing season rather than carrying last year’s choice forward.