US Standard Deduction vs Itemized Deductions 2026 — Which Is Better?

One of the most important tax decisions every American faces: should you take the standard deduction or itemize your deductions? The right choice can save you thousands in taxes. This guide explains both options for 2026.

Standard Deduction Amounts for 2026

Filing Status	Standard Deduction
Single	$14,600
Married Filing Jointly	$29,200
Married Filing Separately	$14,600
Head of Household	$21,900

Additional standard deduction (age 65+ or blind):

• Single or Head of Household: +$1,950
• Married (each qualifying person): +$1,550

What Are Itemized Deductions?

Itemized deductions are specific expenses you can deduct instead of taking the standard deduction. Major categories:

1. State and Local Taxes (SALT) — Capped at $10,000

• State income taxes paid
• Local income taxes
• Property taxes
• Combined limit: $10,000 per household

2. Mortgage Interest

• Interest on up to $750,000 of acquisition debt (first + second home)
• Fully deductible on the first $750,000 of mortgage balance
• Interest on home equity loans used to buy/improve the home also qualifies

3. Charitable Contributions

• Cash donations: up to 60% of Adjusted Gross Income (AGI)
• Non-cash donations (clothing, household items): up to 50% of AGI
• Appreciated securities: up to 30% of AGI (but avoid capital gains)

4. Medical and Dental Expenses

• Only the amount exceeding 7.5% of your AGI
• Includes doctor visits, prescriptions, dental, vision, long-term care insurance premiums
• Example: AGI = $100,000 → only expenses above $7,500 are deductible

5. Casualty and Theft Losses

• Only for federally declared disasters
• Limited to losses exceeding 10% of AGI minus $100

6. Investment Interest Expense

• Interest paid on loans used to invest (up to net investment income)

7. Gambling Losses

• Only up to the amount of gambling winnings reported

Standard vs Itemized: Decision Framework

Take the standard deduction if:

• Total itemizable expenses < standard deduction amount
• You rent (no mortgage interest)
• Low state income taxes (e.g., Texas, Florida residents)
• Straightforward tax situation

Itemize if:

• Mortgage interest + SALT + charitable giving > standard deduction
• High state income taxes (California, New York, New Jersey)
• Large charitable donations
• Significant medical expenses (rare)

Example Comparisons

Example 1: Single Renter in Texas

• State income tax: $0 (no Texas income tax)
• Property tax: $0 (renter)
• Charitable giving: $1,500
• Total itemizable: $1,500
• Standard deduction: $14,600

Decision: Take standard deduction. Save $14,600 vs $1,500 = $13,100 more deduction.

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Example 2: Married Homeowner in California

• State income tax (CA): $8,000
• Property tax: $7,000 → SALT total: $15,000 → capped at $10,000
• Mortgage interest: $18,000
• Charitable giving: $5,000
• Total itemizable: $10,000 + $18,000 + $5,000 = $33,000
• Standard deduction (married): $29,200

Decision: Itemize. Save $33,000 vs $29,200 = $3,800 more deduction = ~$912 more tax savings.

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Example 3: High-Earner Single in New York

• State income tax (NY): $10,000
• Property tax: $8,000 → SALT total: $18,000 → capped at $10,000
• Mortgage interest: $22,000
• Charitable giving: $8,000
• Total itemizable: $10,000 + $22,000 + $8,000 = $40,000
• Standard deduction: $14,600

Decision: Itemize. $40,000 vs $14,600 = $25,400 more deduction = ~$5,588 more savings at 22%.

The 2017 Tax Cuts and Jobs Act Impact

The Tax Cuts and Jobs Act (TCJA) nearly doubled the standard deduction and capped SALT at $10,000. Before 2018, about 30% of taxpayers itemized. Now, only about 10-12% do.

What Happens After TCJA Expiration?

Many TCJA provisions were set to expire after 2025. If Congress does not extend them:

• Standard deduction could fall significantly
• More taxpayers may benefit from itemizing
• The $10,000 SALT cap could be removed

Action: Monitor tax law changes for 2026+ planning.

"Bunching" Deductions Strategy

If your itemized deductions are close to the standard deduction amount, consider bunching:

Bunching example:

• Normal year: $12,000 in itemizable expenses (below $14,600 standard)
• Bunching year: Donate 2 years of charity in one year → $14,000 + $4,000 charity = $18,000 itemizable

Result: Itemize one year ($18,000), take standard the next ($14,600) = more total deductions over 2 years.

Donor-Advised Funds (DAF)

A Donor-Advised Fund lets you:

1. Make a large lump-sum donation in one year (get the full deduction now)
2. Distribute funds to charities over multiple years

This is ideal for bunching charitable deductions for the standard deduction comparison.

How to Decide

1. Estimate your itemizable expenses using the categories above
2. Compare to your standard deduction amount
3. If itemizable > standard: itemize using Schedule A
4. If itemizable < standard: take the standard deduction (no Schedule A needed)
5. Use tax software — it automatically calculates both and picks the larger

Common Mistakes

Mistake 1: Forgetting the SALT Cap

Many high-income residents in high-tax states forget their SALT deduction is capped at $10,000 per household.

Mistake 2: Itemizing When Standard Is Higher

Double-check: some taxpayers itemize out of habit even though the standard deduction is larger.

Mistake 3: Missing Charitable Carry-forwards

If your charitable donations exceed 60% of AGI, the excess carries forward 5 years.

Frequently Asked Questions

What percentage of Americans itemize?

About 10-12% of tax filers itemize under current (post-2017) rules. The rest take the standard deduction.

Can I switch between standard and itemized each year?

Yes! You choose each year. Many taxpayers alternate based on their expenses (bunching strategy).

Does the standard deduction apply to state taxes?

Your state sets its own standard deduction. California, for example, has a $5,202 standard deduction (single, 2026), much lower than the federal amount.

Should married couples always file jointly?

Usually yes — the married filing jointly standard deduction ($29,200) is double the single amount. Filing separately usually results in higher taxes unless in specific situations.

Use Our Calculator

See exactly how your deductions affect your tax bill with our US Tax Calculator. Enter different income and deduction scenarios to optimize your tax strategy.

This guide is for informational purposes. Tax laws change frequently. Consult a tax professional for personalized advice.