Standard Deduction vs. Itemizing in 2026: Which Saves You More?
Short answer
For 2026 the standard deduction is $16,100 for single filers (and married filing separately), $32,200 for married couples filing jointly, and $24,150 for heads of household. You should itemize only if your deductible expenses (mainly state and local taxes, mortgage interest, charitable gifts, and large medical bills) add up to more than that. Because the state and local tax cap rose to $40,400 for 2026, many New York homeowners who stopped itemizing may benefit again.
Every year you choose between two ways of reducing your taxable income: a flat standard deduction, or itemizing your actual deductible expenses. You take whichever is larger. For most of the last several years, the standard deduction won for the majority of filers. A higher cap on state and local tax deductions changes the math for many New York households, especially homeowners.
2026 standard deduction amounts
| Filing status | 2025 | 2026 |
|---|---|---|
| Single or married filing separately | $15,750 | $16,100 |
| Married filing jointly | $31,500 | $32,200 |
| Head of household | $23,625 | $24,150 |
People who are 65 or older, or blind, get an additional standard deduction on top of these amounts. Separately, people 65 and older may also claim the new deduction of up to $6,000. See the senior deduction.
What you can itemize
- State and local taxes (SALT): state and local income taxes (or sales taxes instead) plus property taxes, up to the cap below
- Mortgage interest on your main home and a second home, within limits
- Charitable contributions to qualified organizations, with receipts
- Medical and dental expenses above 7.5% of your adjusted gross income
- Certain casualty losses and other less common items
The SALT cap: the number that matters most in New York
| 2025 | 2026 | |
|---|---|---|
| SALT cap | $40,000 | $40,400 |
| Married filing separately | $20,000 | $20,200 |
| Cap starts shrinking above modified AGI of | $500,000 | $505,000 |
| Cap can’t fall below | $10,000 | $10,000 |
New York City residents pay state and city income tax, and many pay significant property tax. Under the old $10,000 cap, much of that was lost. With a $40,400 cap, a lot more of it can count. See how much tax NYC residents pay.
Example: A married homeowner couple in Queens
Joint income of $190,000. In 2026 they pay:
- NY State and NYC income tax: $14,500
- Property tax: $7,000
- Mortgage interest: $13,000
- Charitable gifts: $2,500
SALT = $21,500 (under the $40,400 cap). Starting in 2026, itemizers can deduct charitable gifts only above 0.5% of AGI ($950 here), so $1,550 of their $2,500 counts. Total itemized deductions = $21,500 + $13,000 + $1,550 = $36,050.
If they don’t itemize, they get the $32,200 standard deduction plus up to $2,000 for cash gifts to charity, so $34,200. Itemizing still wins by $1,850, worth about $407 in the 22% bracket.
Under the old $10,000 cap, their itemized total would have been far below the standard deduction. The higher cap is what makes itemizing worth it for them.
Example: A single renter
Single, income $85,000, rents an apartment. State and city income tax $5,600, charitable gifts $800, no mortgage.
Itemized total: about $6,400. Standard deduction: $16,100. Take the standard deduction. Starting in 2026 she can also deduct her $800 of cash gifts on top of the standard deduction (up to $1,000 for single filers).
New deductions you get either way
The deductions for qualified tips, overtime, car loan interest, and seniors are available whether you itemize or not. Starting in 2026, people who don’t itemize can also deduct up to $1,000 ($2,000 joint) of cash gifts to charity. See no tax on tips and overtime.
Strategies that can tip the balance
- Bunching charitable gifts: giving two years’ worth of donations in one year can push you over the standard deduction in that year. Keep in mind that, starting in 2026, itemizers can deduct gifts only above 0.5% of AGI.
- Timing property tax payments can sometimes shift deductions between years, within the rules.
- Married filing separately: if one spouse itemizes, the other must itemize too. See jointly vs. separately.
Bring the right paperwork
Your mortgage interest statement, property tax records, and donation receipts are what make itemizing possible. Use our tax documents checklist.
Not sure which is better for you?
We run both calculations on every return and use whichever saves you more.
Frequently asked questions
What is the 2026 standard deduction?
$16,100 for single filers and married filing separately, $32,200 for married filing jointly, and $24,150 for head of household. People 65 or older or blind get an additional amount.
What is the SALT deduction limit for 2026?
$40,400 ($20,200 if married filing separately). It is reduced for modified AGI above $505,000 ($252,500 married filing separately), but not below $10,000 ($5,000 married filing separately).
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