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 for 2025 and $40,400 for 2026 (up from $10,000), phasing back down for very high incomes (above $505,000 MAGI in 2026) — 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 $40,400 for 2026; (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.