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Itemized vs Standard Deduction Calculator

Should you itemize or take the standard deduction? Enter your filing status, income, and deductions to find out which option saves you more in federal tax for 2025 or 2026.

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Itemize Your Deductions

Saves you $55 in federal tax

Your itemized deductions ($16,000) exceed the standard deduction ($15,750), saving you $55 in federal tax.
Want to see your full federal tax?Federal Income Tax Calculator
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Itemized Deductions

Income tax + property tax combined

Only amount above 7.5% of AGI qualifies

Side-by-Side Comparison
Deduction amount
Standard$15,750
Itemized$16,000
Federal tax
Standard$13,449
Itemized$13,394
Itemizing saves $55
Itemized Deduction Breakdown
State & Local Taxes (SALT)
Entered$6,000
Allowed$6,000
Mortgage Interest
Entered$8,000
Allowed$8,000
Charitable Donations
Entered$2,000
Allowed$2,000
Medical Expenses
Entered$0
Allowed$0
Other Deductions
Entered$0
Allowed$0
Total Itemized$16,000

Standard deduction amounts reflect 2025 federal tax law. The SALT deduction is subject to a cap that varies by filing status and income level. Medical expenses are deductible only to the extent they exceed 7.5% of your AGI. Charitable contributions are limited to 60% of AGI for cash donations. This calculator provides estimates — consult a tax professional for your specific situation.

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2024 → 2026 standard deduction

OBBBA §70102 permanently retained the larger TCJA-style standard deduction. Annual inflation indexing via IRS revenue procedure. Age-65+ and blind taxpayers get additional amounts under §63(f).

Filing status 2024 2025 2026
Single / MFS$14,600$15,750$16,100
Married Filing Jointly / QSS$29,200$31,500$32,200
Head of Household$21,900$23,625$24,150

Add for age 65+ or blind (2025): $2,000 unmarried, $1,600 each married. Both conditions stack — an unmarried filer who is both 65+ AND blind adds $4,000. OBBBA §70103 also created a SEPARATE temporary $6,000-per-senior bonus deduction for 2025-2028, claimed regardless of whether you itemize.

What goes on Schedule A — the itemized line items

Schedule A is the IRS form where you list itemized deductions. Five major categories drive most filers' totals:

SALT — Line 5

State + local income tax (or sales tax via §164(b)(5) election) + property tax + personal property tax. Capped at $40,000 ( $20,000 MFS) for 2025 under OBBBA §70120, phasing down at 30% per MAGI dollar above $500,000 to a $10,000 floor.

Mortgage interest — Line 8

Interest on up to $750k of post-2017 acquisition mortgage debt ($1M grandfathered). Second-home interest within the cap. HELOC only for home improvement use under §163(h)(3). Points amortized over loan life unless the loan buys, builds or substantially improves your main home (Pub 936 tests), then deductible in the year paid. Form 1098 from lender.

Charitable — Lines 11-14

Cash to public charities up to 60% of AGI; appreciated property up to 30%. Donor-Advised Fund counts as a public charity gift. 2026+ subject to 0.5% AGI floor (OBBBA §70425) — must subtract this floor before applying the percentage caps. Excess carries forward 5 years.

Medical — Line 1

Only the EXCESS above 7.5% of AGI. Doctors, hospitals, prescriptions, medical mileage, long-term-care premiums (age-capped), medical capital improvements. NOT: gym, cosmetic surgery, non-prescription supplements. Worth running when AGI is low (post- retirement) or medical bills are large.

Casualty / theft losses — Line 15

Federally declared disasters only (TCJA §11044, made permanent by OBBBA §70109); from 2026, state-declared disasters qualify too. Per-loss $100 + 10% AGI floor. Form 4684. Personal-property non-disaster theft/fire losses are NOT deductible.

Other — Line 16

Gambling losses (up to winnings only, 90% haircut from 2026 under OBBBA §70114), §163(d) investment interest expense, federal estate-tax deduction on IRD income, certain unrecovered annuity investment in pension. Misc. 2%-floor deductions (unreimbursed employee expenses, tax-prep fees, investment expenses, etc.) were suspended 2018-2025 by TCJA §11045 and PERMANENTLY terminated by OBBBA §70110 — except educator expenses, which §70110 carved out as a standalone above-the-line deduction.

SALT cap mechanics under OBBBA

The OBBBA §70120 SALT cap is the most consequential 2025 change for itemizers. It RAISES the cap from $10,000 (TCJA level 2018-2024) to $40,000, but adds a phaseout that flips the math at the high end:

MAGI (single or HoH) 2025 SALT cap
≤ $500,000$40,000 (full base)
$550,000$25,000
$600,000$10,000
$650,000$10,000
≥ $600,000$10,000 (floor)

The phaseout effectively creates a "cliff" between $500k and $600k MAGI where each additional dollar of income reduces the deduction by 30¢ — a marginal SALT-loss rate that compounds with the regular bracket. Planning lever: timing income into a year below the phaseout, or shifting state-tax payments via state PTET (pass-through entity tax) regimes that 36 states have enacted to bypass the cap at the partnership/S-corp level.

Worked 2025 examples

Renter, MFJ, no mortgage, $4k charity

Itemized total: $5,000 state tax + $4,000 charity = $9,000. vs Standard $31,500. Take standard. Saves $22,500 of taxable income.

NY/CA homeowner, MFJ, $700k mortgage

Mortgage interest $25,000 + SALT capped at $40,000 (state $30k + property $20k = $50,000 paid → capped) + charity $10,000 = $75,000. vs Standard $31,500. Itemize — saves $43,500 of taxable income.

Retiree, single, $200k AGI, $30k medical bills

Medical above 7.5% floor: $30k − $15k = $15,000 deductible. SALT $8k + charity $3k. Total $26,000. vs Standard $15,750. Itemize — saves $10,250.

$700k income MFJ, $50k state tax + $25k mortgage int

SALT cap phased down: MAGI $700k = $200k over phaseout × 30% = $60k reduction. Cap floors at $10,000. So SALT deducted = $10,000, not $40k or $50k. Total itemized $35k vs $31,500 standard. Itemize — saves only $3,500. Compare carefully — close call at this income.

Planning levers — when to bunch

  • Bunch charity into alternate years. If your normal annual charity is $8k and you take $31,500 standard, donate $16k in year 1 and $0 in year 2 — itemize year 1 (extra above standard) and take standard year 2. Donor-Advised Funds let you front-load the gift, then disburse to charities over multiple years.
  • Time state income tax payments. Pre-pay Q4 state estimated tax in December to push into the current year's SALT (or defer to January for next year). Useful when current-year SALT is below cap but next year's would exceed.
  • Use state PTET regimes. Many states have enacted Pass-Through Entity Tax workarounds since 2018. S-corp / partnership owners can elect to pay state tax at the entity level — deducted as a federal business expense (unlimited, not subject to SALT cap), with a state credit flowing through to the owner. Major bypass for high-tax-state business owners.
  • Plan major medical procedures. Bunch elective procedures into one tax year to exceed the 7.5% AGI floor. Most years yield $0 deduction; one well-timed year of dental + vision + LASIK can produce a real deduction.
  • Watch the 2026 charity floor. Starting 2026 a 0.5% AGI floor reduces deductible cash gifts. Front-load 2025 cash giving (no floor yet) and shift to appreciated-property gifts in 2026+ to minimize the floor's bite.
  • SALT-cap phaseout management. Filers with MAGI $450-650k face a 30% marginal SALT loss. Roth conversions, charitable giving, and 401(k) max-out to compress MAGI below $500,000 preserve the full $40,000 cap.

Common mistakes

  • Forgetting the §165(d) gambling loss cap. Gambling losses only offset gambling winnings, never excess. Reporting $20k winnings + $15k losses → $5k taxable. Reporting $0 winnings + $15k losses → $0 deduction.
  • Deducting HELOC interest used for personal purposes. Post-TCJA, HELOC interest is deductible ONLY for home acquisition/improvement. Using HELOC to consolidate credit-card debt or fund vacations means zero deduction even though the interest is real.
  • Missing the SALT cap phaseout at $500-600k. Many high-income filers assume they get the full $40,000 SALT cap. The 30% phaseout above $500,000 can quickly reduce it to $10,000 for filers in the $700k+ range.
  • Forgetting the 0.5% AGI charity floor starting 2026. A 2026 filer with $200k AGI and $5k charity gifts only deducts $5k − ($200k × 0.5%) = $4,000 — not the full $5k.
  • MFS spouses splitting itemized vs standard. §63(c)(6) requires both MFS spouses to match. If one itemizes, the other CANNOT take the standard deduction — must itemize too even if their itemized total is $0.
  • Treating cash + appreciated property gifts as one bucket. Cash gifts capped at 60% AGI; appreciated property at 30%. A gift mix uses both caps separately, then any remainder carries forward.

Frequently asked questions

What is the standard deduction for 2025 and 2026?
For 2025 (OBBBA §70102 + Rev. Proc. 2024-40): $15,750 single and MFS, $31,500 MFJ and qualifying widow(er), $23,625 head of household. For 2026 (Rev. Proc. 2025-32 §4.14): $16,100 single, $32,200 MFJ. OBBBA §70102 permanently extended the larger TCJA-style standard deduction with annual inflation indexing. Age-65+ or blind taxpayers get additional amounts under §63(f) — $2,000 for unmarried (single/HoH) and $1,600 for each qualifying married spouse in 2025 (Rev. Proc. 2024-40 §2.15(3)).
What is the SALT deduction cap?
For 2025 the State and Local Tax (SALT) deduction is capped at $40,000 ($20,000 MFS), raised from $10,000 by OBBBA §70120. The cap phases DOWN at 30% per dollar of MAGI above $500,000 ($250,000 MFS), with a floor of $10,000 ($5,000 MFS). For 2026 the base is $40,400 with the same floor. Counts: state income tax, local income tax, property tax — combined. Sales tax can substitute for state income tax (one or the other, not both).
When should I itemize instead of taking the standard deduction?
Itemize when your total allowable itemized deductions exceed your filing-status standard deduction. Most common itemizers: homeowners with mortgage interest + property tax + state income tax + charitable contributions that beat the $31,500 MFJ (2025) bar. After TCJA capped SALT and raised the standard deduction, the share of itemizers fell from ~30% to ~10% of returns. OBBBA's larger $40,000 SALT cap brings high-tax-state homeowners back into itemizing.
How does the medical expense deduction work?
Only the amount above 7.5% of AGI is deductible. At $100k AGI the floor is $7,500 — the first $7,500 of medical bills count toward NOTHING. After exceeding the floor, qualifying expenses include doctor/hospital fees, prescription drugs, dental, vision, medical mileage at 21¢ per mile (2025), long-term-care insurance premiums (age-capped under §213(d)(10)), and capital expenses for medical accommodations. NOT deductible: cosmetic surgery, gym memberships, vitamins/supplements, OTC drugs without prescription, funeral expenses.
What's the mortgage interest deduction limit?
Mortgage interest is deductible on up to $750,000 of "acquisition indebtedness" (mortgage taken to buy/build/improve) for loans originated after Dec 15, 2017. Grandfathered loans before that date keep the prior $1,000,000 cap. Home-equity loans (HELOC) are deductible ONLY if used for home acquisition/improvement; cash-out for personal use is NOT deductible (TCJA §11043). Mortgage interest on a SECOND home is deductible within the combined cap. Reported on Schedule A line 8.
What's the charitable contribution limit?
Cash gifts to public charities: deductible up to 60% of AGI. Appreciated-property gifts (long-term-held stock): up to 30% of AGI. Excess carries forward 5 years under §170(d). OBBBA §70425 added a 0.5% AGI FLOOR on itemized charitable contributions starting 2026 (0.5% of AGI must be subtracted from total charitable before the 60% cap applies). 2026 also added a SEPARATE $1,000 single / $2,000 MFJ above-the-line cash charity deduction for non-itemizers under OBBBA §70424.
What about state and local sales tax instead of income tax?
IRC §164(b)(5)(A) lets you elect to deduct STATE+LOCAL SALES tax instead of state income tax (within the same SALT cap). Worth electing in states with no income tax (TX, FL, NV, WA, TN, SD, WY, AK, NH). The IRS publishes Publication 600 sales-tax tables based on state + family size + AGI, then add big-ticket items (cars, boats) actually paid. Also allowed: add sales tax from documented major purchases on top of the table amount.
If one MFS spouse itemizes, must the other?
Yes — IRC §63(c)(6)(A). If you file Married Filing Separately and one spouse itemizes, the other spouse MUST also itemize (cannot take the standard deduction). Same rule reverses: if one takes standard, both must. This prevents couples from arbitrage by having the lower-income spouse itemize and the higher-income spouse take the standard. The /marriage-tax-calculator/ models the MFS vs MFJ split.
What about the 65+ additional standard deduction?
IRC §63(f) provides an extra standard deduction for taxpayers ≥65 or blind. For 2025: $2,000 each for unmarried (single/HoH); $1,600 each for married (so an MFJ couple both ≥65 gets $31,500 + $3,200 = $34,700 standard deduction). A blind 70-year-old single filer gets $15,750 + $4,000 = $19,750. OBBBA also added a temporary $6,000-per-senior bonus deduction 2025-2028 (§70103, phasing out 6% of MAGI over $75,000 single / $150,000 MFJ) — separate from the §63(f) add-on, claimed regardless of itemizing.
Can I itemize federal but take the standard for state?
Depends on state conformity. About 25 states require federal itemizing to itemize state (conforming). Others (CA, NY, OR, AZ) allow you to take federal standard but itemize state. Some states simply follow your federal choice: since its 2024 reform Montana's Form 2 takes your federal AGI less the same type of deduction (standard or itemized) you took on your federal return, so there is no separate state election. Check your state revenue website. For SALT specifically: the federal cap is federal-only — many high-tax states have created PTET (pass-through entity tax) workarounds for owners to deduct state taxes via the entity rather than personally.
What's a casualty loss and can I still deduct it?
TCJA §11044 limited personal casualty losses to FEDERALLY-DECLARED DISASTER AREAS only, originally through 2025. OBBBA §70109 made that limitation PERMANENT (no more sunset) and, starting 2026, EXPANDED it to also cover STATE-declared disasters. So losses from house fires, ordinary theft, or storm damage NOT in a declared disaster area are still NOT deductible. Disaster losses follow §165(h): subtract $100 per loss + 10% of AGI floor, then deduct the remainder. Form 4684 reconciles. Business casualty losses (Schedule C/E property) are not subject to the personal restriction.
What about gambling losses?
Gambling losses are deductible on Schedule A line 16 — but ONLY up to the amount of gambling winnings reported on Schedule 1 line 8b (under §165(d)). You can't deduct net gambling losses. Starting 2026, OBBBA §70114 further limits the deduction to 90% of losses (still capped at winnings) — e.g. $10,000 of losses against $10,000 of winnings nets to only $9,000 deductible, so gambling can produce PHANTOM taxable income even at breakeven. Tracked via a contemporaneous gambling diary or session log. Casino W-2G forms ($1,200+ slot, $5,000+ poker tournament) are reported, but you self-report the rest. Professional gamblers can use Schedule C instead — but face strict §183 hobby-loss tests.
Is there a new limit on itemized deductions for high earners?
Yes — starting 2026, OBBBA §70111 (new IRC §68) reduces itemized deductions for taxpayers in the 37% bracket by 2/37 of the LESSER of (a) total itemized deductions, or (b) the amount by which AGI exceeds the 37%-bracket threshold ($768,700 MFJ / $640,600 single-HoH for 2026). This effectively caps the tax value of each dollar of itemized deduction at 35 cents instead of 37 cents for top-bracket filers. It's applied AFTER the SALT cap, charitable floor, and every other itemized limitation, and does NOT apply to the QBI (§199A) deduction. This calculator models the reduction automatically for 2026 when applicable — it shows as a separate negative line item in the breakdown below.

Sources

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