Itemized vs. Standard Deduction 2026: Which Should You Take?

The standard deduction for 2026 is $16,100 for single filers and $32,200 for married filing jointly. You can subtract this amount from your taxable income without any documentation. Itemizing means listing specific eligible expenses — but you only benefit if they total more than the standard deduction.

About 90% of taxpayers take the standard deduction. Itemizing is most beneficial for homeowners with large mortgage interest, residents of high-tax states, and heavy charitable contributors.

2026 Standard Deduction Amounts

Additional deductions for age/blindness:

• Age 65+ or blind (single/HOH): +$2,050 per condition
• Age 65+ or blind (married): +$1,650 per spouse per condition

A married couple where both spouses are 65+ gets an additional $3,300, bringing their total standard deduction to $35,500.

Common Itemized Deductions and Limits

When Itemizing Makes Sense

Run the math: Add up your potential itemized deductions. If the total exceeds your standard deduction, itemize. If not, take the standard deduction.

Profile likely to benefit from itemizing:

• Homeowner with large mortgage (first 5–10 years when interest is highest)
• Lives in high-tax state (CA, NY, NJ) with combined SALT near or above $40,400
• Makes significant charitable contributions
• Had major unreimbursed medical expenses (>7.5% of AGI)

Profile likely to take standard deduction:

• Renter with no mortgage interest
• Low or no state income tax (TX, FL, WA, etc.)
• Moderate charitable giving
• Standard health costs without a major medical event

Worked Example: Which Is Better?

Lisa, single, owns a home in New Jersey. She has:

• Mortgage interest: $11,400/year (on a $320,000 mortgage)
• Property taxes: $6,200
• State income tax paid: $4,800 (combined with property tax, well under the $40,400 SALT cap)
• Charitable contributions: $2,500

Worked Example: Standard Deduction Wins

Mark, single, rents an apartment in Texas (no state income tax). He has:

• Charitable contributions: $2,000
• No mortgage interest
• No state income tax

The SALT Cap Impact on Itemizing

Before 2018, state and local taxes were fully deductible. The Tax Cuts and Jobs Act capped SALT at $10,000 from 2018–2025, eliminating the itemizing advantage for many middle-income homeowners in high-tax states. For 2026, the One Big Beautiful Bill Act (OBBBA) temporarily raised the cap to $40,400, restoring much of that advantage for households below the $505,000 MAGI phase-out threshold. The higher cap is scheduled to revert to $10,000 starting in 2030 unless extended again.

Who benefits most from the 2026 cap increase: Homeowners in CA, NY, NJ, CT, IL with combined property + income tax between $10,000 and $40,400 — an amount that was fully lost to the old cap but is now largely deductible, provided their MAGI stays under the $505,000 phase-out threshold.

Above-the-Line Deductions: A Third Option

“Above-the-line” deductions reduce your AGI and are available whether you itemize or not. They are the best deductions because they reduce your taxable income before the standard/itemized choice:

Maximize these first, then decide between standard and itemized.

See the Tax Deductions Guide for a full list of deductions and credits available in 2026.

Written by WealthVieu

WealthVieu researches and writes data-driven personal finance guides using primary sources including the IRS, Bureau of Labor Statistics, Federal Reserve, and Census Bureau.