The choice every return starts with
You may subtract from income either the flat standard deduction or the sum of your itemized deductions (Schedule A) — whichever is larger. There's no partial credit for itemizable expenses below the threshold: it's one or the other.
2025 and 2026 standard deduction amounts
| Filing status | 2025 | 2026 |
|---|---|---|
| Single | $15,750 | $16,100 |
| Married filing jointly | $31,500 | $32,200 |
| Married filing separately | $15,750 | $16,100 |
| Head of household | $23,625 | $24,150 |
Age 65+ or blind adds $2,000–$2,050 (single/HoH) or $1,600–$1,650 per qualifying spouse (joint). The separate $6,000 OBBBA senior deduction (2025–2028) applies whether or not you itemize — details in our OBBBA guide.
What you can itemize
- State and local taxes (SALT): income (or sales) tax plus property tax. The OBBBA raised the SALT cap to $40,000 starting in 2025 (up from $10,000), phasing back down for very high incomes (above $500,000 MAGI) — the single biggest reason more homeowners in high-tax states will itemize again.
- Mortgage interest on up to $750,000 of acquisition debt.
- Charitable contributions — cash gifts up to 60% of AGI; appreciated stock avoids capital gains too. (Note: starting in 2026, itemized charitable deductions apply only above a 0.5%-of-AGI floor, while non-itemizers get a new deduction of up to $1,000/$2,000.)
- Medical expenses above 7.5% of AGI — typically only relevant in high-cost years.
The break-even test (60 seconds)
Add four numbers: (1) state income or sales tax + property tax, capped at $40,000; (2) mortgage interest from Form 1098; (3) charitable gifts; (4) medical expenses above 7.5% of AGI. If the total beats your standard deduction, itemize. A married couple needs more than $32,200 in 2026 — without a mortgage or major state taxes, that's hard to reach; with a $400,000 mortgage (~$24,000 interest in early years) plus $12,000 of SALT, it's automatic.
The power move: bunching
If you hover near the threshold, alternate years. Concentrate two years of charitable giving (and, where possible, a property tax payment) into one year — itemize that year with a big total, then take the full standard deduction the next. A donor-advised fund lets you take the deduction now and distribute to charities over time. Over two years, bunching can create thousands in deductions out of identical spending.