Standard vs. Itemized Deductions

The IRS distinguishes a fixed standard deduction from itemized deductions reported on Schedule A. This page records the published amounts, categories, and caps; it does not determine an individual filing treatment.

2025 Standard Deduction Amounts

Additional deduction for age 65+ or blind: +$2,000 (Single/HoH) or +$1,600 per spouse (MFJ/MFS) per qualifying condition.

Common Itemized Deductions

Schedule A records these itemized deduction categories, subject to the IRS limits and definitions:

• State and local taxes (SALT): Income tax, property tax, and sales tax, capped at $40,000 total for 2025 ($20,000 if MFS), rising to $40,400 for 2026 under OBBBA, phased down for high earners; see our SALT cap guide
• Mortgage interest: On up to $750,000 of mortgage debt ($375,000 if MFS)
• Charitable donations: Cash gifts up to 60% of AGI; appreciated assets up to 30% of AGI
• Medical expenses: Amount exceeding 7.5% of AGI
• Casualty losses: From federally declared disasters only

The SALT Cap

The 2017 Tax Cuts and Jobs Act capped the state and local tax (SALT) deduction at $10,000 from 2018-2024. The One Big Beautiful Bill Act (OBBBA), signed July 4, 2025, raised that cap to $40,000 for 2025, rising to $40,400 for 2026, though it phases down for filers with MAGI above $500,000 ($505,000 for 2026) and is scheduled to revert to $10,000 in 2030. See our SALT cap guide for the full breakdown.

Under the pre-OBBBA $10,000 cap, someone paying $15,000 in state income tax and $12,000 in property tax could deduct only $10,000 of the $27,000 they actually paid. Under the 2025-2026 cap, that same $27,000 is fully deductible, since it's well under the $40,000/$40,400 limit.

How the published amounts compare

The comparison uses the standard-deduction amount for a filing status and the Schedule A categories recognized by the IRS. Common reported categories include:

• High mortgage interest (especially in the first years of a mortgage)
• Large charitable donations
• Significant medical expenses (major surgery, chronic illness)
• Combination of SALT cap + mortgage interest + charity exceeds standard deduction

Standard-deduction usage

The standard deduction is a fixed published amount. Circumstances commonly associated with fewer Schedule A categories include:

• Rent (no mortgage interest)
• Live in a low-tax state
• Don't make large charitable gifts
• Are age 65+ (additional standard deduction makes it even harder to beat)

Since the standard deduction was nearly doubled in 2018, roughly 87% of taxpayers now take it instead of itemizing.

Key Takeaways

• The standard deduction is a published fixed amount for each filing status.
• Schedule A reports itemized deduction categories under their applicable IRS rules.
• The SALT cap is $40,000 in 2025 and $40,400 in 2026, with an income-based phaseout.
• Mortgage interest, charitable contributions, and qualifying medical expenses are reported Schedule A categories.
• The applicable deduction treatment is determined under the rules for the relevant tax year.