Understanding the Standard Deduction
By Richard James, Enrolled Agent | James Family Tax
The standard deduction lowers the income you pay tax on, and most taxpayers take it instead of itemizing. The amounts change every year for inflation, and the One Big Beautiful Bill Act raised them permanently starting with 2025.
What Is the Standard Deduction?
The standard deduction is a fixed amount set by the IRS that you subtract from your income before your tax is figured. You can take it or itemize your deductions, such as mortgage interest, state and local taxes and charitable gifts, but not both. Most households come out ahead with the standard deduction.
Standard Deduction Amounts
| Filing status | 2025 (returns filed in 2026) | 2026 (returns filed in 2027) |
|---|---|---|
| Single or married filing separately | $15,750 | $16,100 |
| Married filing jointly | $31,500 | $32,200 |
| Head of household | $23,625 | $24,150 |
Taxpayers who are 65 or older or blind can add an extra amount on top of these figures.
Should You Itemize Instead?
- Add up your itemized deductions. If mortgage interest, state and local taxes, medical costs above the limit and charitable gifts total more than your standard deduction, itemizing may save you more.
- Remember the higher SALT cap. The state and local tax deduction cap rose from $10,000 to $40,000 for 2025, with small yearly increases through 2029 and a phase-down for higher incomes, so more homeowners may benefit from itemizing.
- New for 2026: if you take the standard deduction, you can still deduct up to $1,000 of cash gifts to charity, or $2,000 if married filing jointly.
How the Standard Deduction Helps
- Simpler filing: no need to track and document every deductible expense.
- Often a bigger deduction: for many families, it’s larger than their itemized total.
- Keeps pace with inflation: the amounts rise each year.
Not sure which way is better for you? We’ll run the numbers both ways when we prepare your return.
Sources: IRS 2026 inflation adjustments.
How James Family Tax Can Help
Want a professional to handle your return? Our Tax Family is here year-round at our San Antonio and Schertz offices.
Book an appointment at our San Antonio or Schertz office, or call (210) 864-1788.
Related reading: How to Choose a Tax Professional & Why You Need One