Are you tired of paying more taxes than you have to? Do you wish there was a way to keep more hard-earned money in your pocket? Well, there is! Introducing the standard deduction. It’s a powerful tool that can help you lower the taxes you owe each year.
For the 2025 tax year (filed in 2026), the standard deduction is $15,750 for single filers, $31,500 for married filing jointly, and $23,625 for head of household. For the 2026 tax year (filed in 2027), these amounts increase to $16,100 (single), $32,200 (married, filing jointly), and $24,150 (head of household).
The standard deduction can benefit you whether you’re a student, a working professional, or a retiree. In this article, we’ll take a closer look at the standard deduction, how it works, and how you can take advantage of it to save money on your taxes.
What Is the Standard Deduction?
Okay, that intro was a bit sarcastic. But the standard deduction is genuinely useful. I remember back in the day when life wasn’t as complicated as it is now, I used to take the standard tax deduction when filing my taxes every year. No itemizing is required. No Schedule A required. Just a simple tax return with one number for my “below-the-line” deductions.
Don’t get me wrong, I’m glad to have more deductions on my return these days. I just appreciated the simplicity of the standard deduction. Now, I get to take the standard deduction every other year because of the doubling of the standard deduction. I’ll explain how I do that below. Who knows, maybe I’ll get back to taking it every year – maybe when I pay off the house note.
The standard deduction is the IRS’s way of accounting for a baseline of taxpayer expenses. Everyone has a few “standard” living expenses, right? The government has decided by way of the tax code to not tax income used to cover life’s basics. Thus, the standard deduction.
According to the IRS: “The standard deduction is a specific dollar amount that reduces the amount of income on which you’re taxed.”
So there you have it. The standard deduction reduces your adjusted gross income, and in effect, reduces the amount of tax that you are required to pay.
Standard Deduction Amounts for 2025 and 2026
How much is this deduction? Well, it changes each year and your filing status will also change it.
2025 Tax Year (Filed in 2026)
Filing StatusStandard DeductionSingle$15,750Married Filing Jointly$31,500Married Filing Separately$15,750Head of Household$23,625Qualifying Surviving Spouse$31,500
2026 Tax Year (Filed in 2027)
Filing StatusStandard DeductionSingle$16,100Married Filing Jointly$32,200Married Filing Separately$16,100Head of Household$24,150Qualifying Surviving Spouse$32,200
Additional Standard Deduction for Seniors and Blind Taxpayers
If you are 65 or older, or blind, you get a larger standard deduction. These additional amounts are added on top of the base standard deduction:
2025 Additional Amounts
- Single or Head of Household: $2,000 extra
- Married Filing Jointly or Surviving Spouse: $1,600 extra per qualifying person
2026 Additional Amounts
- Single or Head of Household: $2,050 extra
- Married Filing Jointly or Surviving Spouse: $1,650 extra per qualifying person
For example, if you’re a married couple filing jointly in 2026 and both spouses are over 65, your total standard deduction would be $32,200 + $1,650 + $1,650 = $35,500.
NEW: Enhanced Deduction for Seniors (2025-2028)
Thanks to the One Big Beautiful Bill Act (OBBBA) passed in 2025, taxpayers age 65 and older can now claim an additional $6,000 deduction for tax years 2025 through 2028. This is in addition to the regular standard deduction and the additional standard deduction for seniors.
Important: This new $6,000 seniors deduction phases out for higher-income taxpayers:
- Phase-out begins at $75,000 for single filers
- Phase-out begins at $150,000 for joint filers
- The deduction is reduced by 6 cents for every dollar over these thresholds
- Completely phased out at $175,000 (single) or $250,000 (joint)
This can result in significant tax savings for qualifying seniors. For example, a 70-year-old single filer with $70,000 of income could claim: $16,100 (standard) + $2,050 (65+ additional) + $6,000 (OBBBA seniors deduction) = $24,150 total deduction for 2026.
Standard Deduction Amounts: Year by Year (2013-2026)
Here’s a historical look at how the standard deduction has changed over the past years:
Tax YearSingleMarried Filing JointlyHead of Household2026$16,100$32,200$24,1502025$15,750$31,500$23,6252024$14,600$29,200$21,9002023$13,850$27,700$20,8002022$12,950$25,900$19,4002021$12,550$25,100$18,8002020$12,400$24,800$18,6502019$12,200$24,400$18,3502018$12,000$24,000$18,0002017$6,350$12,700$9,3502016$6,300$12,600$9,3002015$6,300$12,600$9,2502014$6,200$12,400$9,1002013$6,100$12,200$8,950
Note: The significant jump in 2018 was due to the Tax Cuts and Jobs Act (TCJA) which nearly doubled the standard deduction. The OBBBA made these changes permanent.
How Does the Standard Deduction Work?
Well, let’s use an example. Let’s say your adjusted gross income (the number at the bottom of page 1 of the Form 1040) is $50,000. You are single. Therefore your standard deduction of $16,100 (for 2026) is subtracted from $50,000. This means that $33,900 will essentially be your taxable income. That’s the number that is applied against the federal tax rates to determine your actual tax paid.
Standard Deduction vs. Itemizing
As a taxpayer, you must choose whether to take the standard deduction or itemize your deductions on Schedule A. Whichever deduction is greater should be the one you choose (there’s your basic math lesson for the day).
In general, it works out in your favor to itemize if you have:
- Mortgage interest
- State and local taxes (SALT) up to $40,000 (increased from $10,000 by OBBBA for 2025-2028)
- Charitable contributions
- Major out-of-pocket medical expenses
Any basic tax software program will be able to handle this calculation for you. The software will calculate both ways and automatically select the method that results in lower taxes.
Other Tax Changes for 2025-2026
The One Big Beautiful Bill Act brought several other tax changes that might benefit you:
- No tax on tips and overtime pay for qualifying workers
- Car loan interest deduction (2025-2028) for auto loans on new or used vehicles
- Higher SALT deduction cap: $40,000 (up from $10,000) for 2025-2028
- Enhanced seniors deduction: Additional $6,000 for those 65+ (2025-2028)
When Should You Itemize?
With the standard deduction as high as it is now, fewer taxpayers benefit from itemizing. However, you should still consider itemizing if:
- Your total itemized deductions exceed the standard deduction for your filing status
- You have significant mortgage interest and property taxes
- You made large charitable contributions
- You had major medical expenses (over 7.5% of your AGI)
- You experienced a casualty or theft loss
Special Rules for Dependents
If you’re claimed as a dependent on someone else’s tax return, your standard deduction is limited. For 2026, it’s the greater of:
- $1,350, or
- Your earned income plus $450 (but not more than the regular standard deduction)
Summary
The standard deduction is one of the simplest ways to reduce your taxable income. For most taxpayers, it provides more tax savings than itemizing deductions. With the increases for 2026 and the new enhanced seniors deduction, many taxpayers will see even greater tax benefits.
Key Takeaways:
- 2026 standard deduction: $16,100 (single), $32,200 (married), $24,150 (head of household)
- Additional amounts for those 65+ or blind: $2,050 (single) or $1,650 (married)
- New $6,000 seniors deduction available 2025-2028 (income limits apply)
- Compare standard vs. itemized to maximize your tax savings
- File your taxes with confidence knowing you’re using the right deduction
Whether you take the standard deduction or itemize, make sure you’re taking advantage of all the tax benefits available to you!
