Key takeaways

• Standard deduction amounts vary by filing status and increase with inflation each year
• Some taxpayers must itemize or cannot claim the standard deduction
• Itemizing may provide greater savings for those with high deductible expenses

The standard deduction reduces the portion of income subject to federal taxes. The IRS adjusts deduction amounts annually, and eligibility depends on filing status. For people with substantial deductible expenses, itemizing may offer greater tax savings, but most filers benefit from taking the standard deduction.

Tax deductions are a powerful tool that can help people reduce their taxable income and pay less in taxes each year. Deductions can cover a range of financial situations, including charitable contributions and investment losses. But the most common deduction — the one any taxpayer can qualify for — is the standard deduction.¹

It’s helpful for strategic savers to understand what the standard deduction is, how it helps you reduce your tax liability, and how it affects your ability to claim other tax deductions.

What is a standard deduction?

The standard deduction is a fixed dollar amount that reduces the portion of your income that is taxed. It’s subtracted from your adjusted gross income (AGI) when calculating federal income tax.

The standard deduction has several benefits. First, it allows any taxpayer to reduce their taxable income and, therefore, the amount they’ll pay in taxes. It’s the only tax deduction that’s available to everyone.

The standard deduction also helps simplify the tax process. Without the standard deduction, more taxpayers would end up itemizing deductions, which can be a complex process requiring more extensive documentation.

It can still be more beneficial for certain taxpayers to itemize deductions rather than claiming the standard deduction. However, those taxpayers generally have more complex tax situations and higher expenses that can make the additional paperwork worth the time investment.

The IRS changes the amount of the standard deduction each year, and it varies depending on your tax filing status. There’s a separate standard deduction for married couples filing jointly, single filers, and married couples filing separately, and heads of household.

Read more: What are the tax benefits of marriage?

How does the standard deduction work?

A tax deduction works by directly reducing your taxable income. As a result, less of your income is subject to income taxes and you have a lower tax liability for the year.

Suppose you have a yearly income of $50,000 and qualify for a tax deduction of $5,000. You would subtract the $5,000 from your income, meaning only $45,000 of your income is subject to taxation.

Depending on your situation, the standard deduction may be even more impactful than just reducing the amount of your income that’s subject to taxes. Someone who is just over the edge of a higher tax bracket might be pushed down into a lower tax bracket thanks to the standard deduction. So not only can a person reduce the amount of income they pay taxes on, but they also reduce the rate at which they’re taxed on their highest income.

The standard deduction differs from other tax deductions because you don’t have to do anything to qualify other than choose the standard deduction instead of itemizing your deductions when filing your return. However, while the standard deduction may be impactful for taxpayers in lower tax brackets, high-income earners may benefit more from itemizing.

Determining your standard deduction

Your standard deduction is determined by your tax filing status. There are five primary filing statuses:

• Single
• Married filing jointly
• Married filing separately
• Head of household
• Qualifying surviving spouse — formerly qualifying widow(er) status

There are also some situations that could increase or decrease your standard deduction. For example, individuals who are blind or who are 65 and older qualify for an increased standard deduction. On the other hand, taxpayers who can be claimed as a dependent by another taxpayer often have a reduced standard deduction.2

Though the standard deduction is available to everyone, there are a few situations where someone wouldn’t be able to claim it:³

• Itemizing deductions: The most common situation where someone wouldn’t be able to claim the standard deduction is if they are itemizing their tax deductions.
• Married filing separately: If you and your spouse file separately and one spouse chooses to itemize their deductions, both spouses must itemize their deductions.
• Special entities: You can’t claim the standard deduction for a special entity such as an estate or trust, a common trust fund, or a partnership.
• Short tax year: If you file a return for a period of less than a year due to a change in your annual accounting period, you can’t claim the standard deduction.
• Nonresident or dual-status alien: Nonresident aliens and dual-status taxpayers can’t claim the standard deduction except for certain exceptions.

Read more: How married filing separately works and when to do it

Standard deduction amounts for 2025 and 2026

The table below shows the standard deduction for different filing statuses in both 2025 and 2026.⁴

Read more: 8 IRS changes that could impact your taxes in 2026

Standard deduction vs. itemized deduction

When you file your federal tax return, you’ll have two options: claiming the standard deduction or itemizing your deductions. Claiming the standard deduction is the simplest option. And for most taxpayers, the standard deduction can offer the greatest tax savings.

However, for some people, itemizing deductions could be a better option. Itemizing your deductions allows you to claim certain deductions that you wouldn’t be able to claim if you claimed the standard deduction. And for high-income earners with high spending, itemizing deductions may often result in greater tax savings.

Some of the deductions available if you choose to itemize include:⁵

• Medical and dental expenses over 7.5% of your adjusted gross income (AGI)⁶
• Home mortgage interest gains from a home sale
• Income, sales, real estate, and property taxes
• Charitable contributions
• Gambling losses
• Moving expenses

It’s worth noting that even if you claim the standard deduction, there are still some other deductions you’re eligible for. These deductions are known as above-the-line deductions or adjustments to income. They reduce your taxable income to help you calculate your AGI. Deductions you’re eligible to claim alongside the standard deduction include:

• Educator expenses
• Student loan interest
• Tuition and fees
• Alimony payments (only for divorce agreements made before December 31, 2018)
• Retirement contributions
• HSA contributions

Read more: Federal income tax: Rules & ways to reduce your tax burden

Choosing between the standard deduction and itemizing

If you’re eligible for a large number of itemized deductions, rather than taking the standard deduction, itemizing may be worth the effort.

The easiest way to determine whether you should claim the standard deduction or itemize your deductions is to calculate your taxes both ways. If you use tax software, the software probably already does this on your behalf. It takes the information you provide and determines which avenue provides the most tax savings. Similarly, if you hire a tax professional, they’ll be able to tell you which route makes the most sense.

If you file your own taxes, complete — but don’t file — two separate returns, one where you claim the standard deduction and one where you itemize deductions. Once you see which provides the greatest tax savings, you can decide on the best option.

Keep in mind that even if one method has always been most cost-effective for you, you shouldn’t assume that will always be the case. For example, many people claim the standard deduction for many years, but then eventually begin to itemize deductions. Likewise, someone may find better tax savings by itemizing deductions, but then their financial situation simplifies, and suddenly claiming the standard deduction provides better savings.

Each year, start fresh and run the numbers both ways to see which option helps reduce your taxable income the most.

Record-keeping and IRS audits

Regardless of your tax situation, proper record-keeping is critical. First, it’s important to keep all relevant financial and tax documents throughout the year to help you file your taxes the following spring. Having thorough records will make it easier for you or your accountant to file your taxes accurately.

However, you should maintain financial records even after you’ve filed your taxes for the year. The IRS can generally audit tax returns from the past three years. However, if they find significant errors, they may go back as far as six years.⁷

The IRS recommends keeping tax records for at least the period of time in which you can amend your tax return or the IRS can assess additional tax.⁸ For most records, that means three years. However, there are some records you should keep for longer periods, such as claims of worthless securities, bad debt reduction, fraudulent returns, employment taxes, and more.

Making informed decisions

To ensure you can make informed decisions, it’s important to have the right information and experts by your side. Seek advice from tax professionals when you have questions about your specific situation.

If you’ve filed income tax returns before, there’s a good chance you’ve claimed the standard deduction. However, personal finances — including taxes — should never be a one-size-fits-all approach. It’s important to determine what tax solution makes the most sense for you. You might find that the standard deduction is the best choice, but you could also find that you get more tax savings from itemizing deductions.

Frequently asked questions about the standard deduction

What is the standard deduction?

The standard deduction is a fixed amount that reduces taxable income. It’s subtracted from adjusted gross income when calculating federal income tax.

Who qualifies for the standard deduction?

Most taxpayers qualify automatically. Exceptions include certain nonresident taxpayers, dual-status filers, estates, trusts, partnerships, and anyone who itemizes deductions.

Is it better to itemize or take the standard deduction?

It depends on deductible expenses. People with large medical, tax, interest, or charitable deductions may reduce taxable income more by itemizing.

Do older adults or people who are blind receive a higher deduction?

Yes. Taxpayers who are blind or age 65 and older may qualify for an increased standard deduction.