When you file your federal taxes, you have a choice: take the standard deduction or itemize your deductions. Your decision directly affects how much of your income is taxable, so it is worth understanding both options before you file.
What Is the Standard Deduction?
The standard deduction is a flat dollar amount the IRS lets you subtract from your adjusted gross income (AGI) without needing to document specific expenses. For 2026, the standard deduction amounts are:
- Single filers: $15,000
- Married filing jointly: $30,000
- Head of household: $22,500
If you are 65 or older, or legally blind, you get an additional standard deduction amount on top of these figures.
Taking the standard deduction is simple. You enter the flat amount on your return and move on. No receipts or documentation required.
What Are Itemized Deductions?
Itemized deductions let you list specific qualifying expenses you paid during the year. The most common itemized deductions include:
- Mortgage interest: Interest paid on a mortgage for your primary or secondary home
- State and local taxes (SALT): Property taxes and either state income taxes or sales taxes, capped at $10,000 per year ($5,000 if married filing separately)
- Charitable contributions: Cash and non-cash donations to qualifying organizations
- Medical and dental expenses: Qualifying expenses that exceed 7.5% of your AGI
- Mortgage insurance premiums: In some cases, PMI is deductible
To itemize, you complete Schedule A with your tax return and keep documentation for every deduction you claim.
Which One Should You Choose?
The rule is straightforward: choose whichever option gives you the larger deduction. If your itemized deductions add up to more than the standard deduction for your filing status, itemize. If they add up to less, take the standard deduction.
The majority of taxpayers take the standard deduction. After the Tax Cuts and Jobs Act of 2017 roughly doubled the standard deduction amounts, itemizing became less advantageous for most households.
Who Benefits Most from Itemizing?
Itemizing tends to pay off if you have:
- A large mortgage with significant interest payments
- High property taxes in your state
- Large charitable contributions
- Significant out-of-pocket medical expenses from a serious illness or injury
Homeowners in high-cost states with expensive properties are the most common group for whom itemizing makes sense.
Can You Switch Between Methods Each Year?
Yes. You can choose the standard deduction one year and itemize the next. Some taxpayers strategically bunch deductions, making two years of charitable contributions in a single year to push their itemized total above the standard deduction threshold, then taking the standard deduction the following year.
The SALT Cap and Itemizing
Since 2018, the deduction for state and local taxes has been capped at $10,000. For people in high-tax states like New York or California, this limitation significantly reduces the benefit of itemizing, because SALT deductions used to be one of the biggest line items on Schedule A.
What About AMT?
High earners who itemize may also be subject to the Alternative Minimum Tax (AMT), which adds back certain deductions and taxes income under a parallel system. If AMT applies to you, some itemized deductions become less valuable. Tax software handles this automatically, but it is something to be aware of.
Deductions You Can Take Regardless of Your Choice
Some deductions are “above the line,” meaning you can take them whether you itemize or take the standard deduction. These include contributions to a traditional IRA, student loan interest, HSA contributions, and self-employment taxes. These are claimed before you choose between standard and itemized.
Bottom Line
Add up your potential itemized deductions and compare the total to the standard deduction for your filing status. Go with the larger number. For most people, the standard deduction wins, but if you own a home, pay significant state taxes, or give heavily to charity, run the numbers to be sure.