Standard Deduction vs Itemizing: Which Saves More? (2026)

2026 Standard Deduction Amounts

Single filers: $15,000
Married filing jointly: $30,000
Head of household: $22,500
Additional deduction (age 65+ or blind): $1,550 per condition (single), $1,250 per condition (married)

The Tax Cuts and Jobs Act (2017) roughly doubled the standard deduction, and it has continued to increase with inflation each year. As a result, approximately 90% of taxpayers now take the standard deduction rather than itemizing.

Who Should Consider Itemizing

Itemizing only makes sense if your eligible deductions exceed the standard deduction. You're likely to benefit from itemizing if you:

Own a home with a large mortgage (significant mortgage interest deduction)
Live in a high-tax state (though the SALT deduction is capped at $10,000)
Made substantial charitable donations
Have significant unreimbursed medical expenses (above 7.5% of AGI)
Had large casualty losses from a federally declared disaster

Major Itemized Deductions Explained

SALT (State and Local Taxes): Capped at $10,000 per return regardless of filing status. Includes state income OR sales tax, plus property tax.
Mortgage interest: Deductible on up to $750,000 of mortgage debt for homes purchased after December 15, 2017. Can be substantial in early loan years when most of the payment is interest.
Charitable donations: Cash donations to qualified 501(c)(3) organizations, deductible up to 60% of AGI.
Medical expenses: Only expenses exceeding 7.5% of AGI are deductible. High threshold means few people benefit.

Bunching Deductions Strategy

If your itemized deductions are close to but slightly below the standard deduction, consider bunching deductions — concentrating two years of charitable giving into one year, or accelerating property tax payments. In Year A, you itemize with two years of donations; in Year B, you take the standard deduction. This often produces a lower total tax bill than deducting the same amount each year.

State Tax Planning

The SALT cap disproportionately affects residents of high-tax states like California, New York, and New Jersey. Strategies used include donating to state tax credit programs (charitable deduction workaround) and making larger deductible contributions in the same year as other large deductions to make itemizing worthwhile.

Frequently Asked Questions

Should most people take the standard deduction?

Yes. About 90% of taxpayers take the standard deduction since the TCJA doubled it in 2018. Unless you have significant mortgage interest on a large loan, live in a high-tax state with other major deductions, or made very large charitable contributions, the standard deduction is likely higher than your itemized deductions.

Can I deduct my home office?

Employees working from home cannot deduct home office expenses (eliminated by TCJA for 2018–2025). Self-employed individuals can deduct home office expenses if the space is used regularly and exclusively for business. This can be a significant deduction for freelancers and business owners.

What is the SALT deduction cap?

The SALT (State and Local Tax) deduction is capped at $10,000 per tax return regardless of filing status. This cap significantly limits the deduction for residents of high-tax states, since state income taxes plus property taxes often exceed $10,000 for middle- and upper-income households in those states.