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

What Is the Standard Deduction?

The standard deduction is a flat dollar amount that reduces your taxable income, no questions asked. You don't need receipts or documentation. For the 2025 tax year, the standard deduction amounts are:

• Single or Married Filing Separately: $15,000
• Married Filing Jointly or Qualifying Surviving Spouse: $30,000
• Head of Household: $22,500

If you're 65 or older or blind, you can claim an additional standard deduction amount.

What Does Itemizing Mean?

Itemizing means listing out individual deductible expenses instead of taking the flat standard amount. Common itemized deductions include:

• State and local taxes (SALT): Income or sales taxes plus property taxes, capped at $10,000 per year
• Mortgage interest: Interest paid on up to $750,000 of mortgage debt (for loans originated after December 15, 2017)
• Charitable contributions: Donations to qualified charities, typically up to 60% of your AGI
• Medical expenses: Out-of-pocket costs exceeding 7.5% of your AGI
• Casualty and theft losses: From federally declared disasters

The Simple Rule

If your total itemized deductions add up to more than your standard deduction, itemize. If they don't, take the standard deduction.

For example, a married couple filing jointly with $14,000 in itemized deductions would save more by taking the $30,000 standard deduction — that's $16,000 in additional deductions.

When Itemizing Usually Makes Sense

• You live in a high-tax state (California, New York, New Jersey)
• You pay significant mortgage interest on a large loan
• You made large charitable donations
• You had substantial unreimbursed medical expenses
• You're a single filer with a mortgage and high state taxes

When the Standard Deduction Usually Wins

• You rent your home
• You live in a state with no income tax
• Your mortgage is small or paid off
• Your charitable giving is modest

A Common Mistake to Avoid

Many taxpayers assume they should itemize because they own a home. But after the Tax Cuts and Jobs Act of 2017 nearly doubled the standard deduction, the majority of homeowners are actually better off taking the standard. Always run the numbers.

Try Our Free Tax Calculator

Our Federal Tax Calculator lets you compare both options side by side. Enter your income and potential itemized deductions — the tool automatically determines whether the standard or itemized deduction gives you the lower tax bill for 2025.