When you file your taxes, you can choose between taking the standard deduction or itemizing deductions. Most taxpayers claim the standard deduction because it's simpler, but itemizing may lower your taxable income if your eligible deductions add up to more than your standard deduction.
Standard Deduction Amounts
For tax year 2026, the standard deduction is:
- Single or Married Filing Separately: $16,100
- Married Filing Jointly or Qualifying Surviving Spouse: $32,200
- Head of Household: $24,150
For tax year 2025, the standard deduction is:
- Single or Married Filing Separately: $15,750
- Married Filing Jointly or Qualifying Surviving Spouse: $31,500
- Head of Household: $23,625
If your total itemized deductions exceed the standard deduction amount for your filing status, itemizing may save you money on your taxes.
What Changed Under the One Big Beautiful Bill Act (OBBBA)?
The One Big Beautiful Bill Act (OBBBA) permanently extended many of the tax rules originally introduced by the Tax Cuts and Jobs Act (TCJA). As a result, several itemized deductions that were previously suspended remain unavailable.
The law also made important changes to certain itemized deductions.
State and Local Tax (SALT) Deduction
The deduction for state and local taxes includes:
- State and local income taxes or sales taxes
- Real estate (property) taxes
For tax years 2025 through 2029, the SALT deduction limit increased from $10,000 to $40,000. The limit is adjusted annually for inflation.
A phaseout may apply if your modified adjusted gross income exceeds certain thresholds. However, the deduction generally cannot be reduced below $10,000.
Miscellaneous Itemized Deductions
The OBBBA permanently removed miscellaneous itemized deductions that were previously suspended under the TCJA. Examples include:
- Unreimbursed employee expenses
- Tax preparation fees
- Investment expenses
These expenses are no longer deductible as itemized deductions.
Common Itemized Deductions That Are Still Available
You may still be able to itemize the following deductions if you qualify.
Mortgage Interest Deduction
You can generally deduct interest paid on a qualified mortgage used to buy, build, or substantially improve your home.
- For mortgages originating after December 15, 2017, interest is generally deductible on up to $750,000 of qualified mortgage debt.
- For older mortgages, the previous $1 million debt limit generally continues to apply.
The OBBBA made the $750,000 mortgage debt limit permanent.
Home Equity Loan Interest
Interest on a home equity loan or line of credit may be deductible if the borrowed funds were used to buy, build, or substantially improve the home that secures the loan.
Interest is not deductible when the loan proceeds were used for personal expenses, such as:
- Credit card balances
- Vacations
- Living expenses
Medical and Dental Expenses
You can deduct qualified unreimbursed medical and dental expenses that exceed 7.5% of your adjusted gross income (AGI).
To qualify:
- The expenses must be eligible medical expenses.
- They must have been paid out of pocket or with after-tax dollars.
- Amounts reimbursed by insurance cannot be deducted.
Casualty and Theft Losses
You may be able to claim a deduction for certain casualty losses if the loss resulted from a qualified disaster.
Examples may include damage caused by:
- Hurricanes
- Floods
- Wildfires
- Other qualifying disaster events
Keep records of the loss, insurance reimbursements, and any documentation related to the disaster declaration.
Should You Itemize or Take the Standard Deduction?
A quick rule of thumb: add up all of your eligible itemized deductions, including SALT taxes, mortgage interest, charitable contributions, medical expenses, and qualifying casualty losses. If the total is greater than your standard deduction, itemizing may reduce your taxable income and lower your tax bill.
If your itemized deductions are less than your standard deduction, taking the standard deduction is usually the better choice.
Our tax software automatically compares both methods and helps you choose the deduction that gives you the best tax outcome.