The Tax Cuts and Jobs Act of 2017 roughly doubled the standard deduction, which is why over 90% of taxpayers now take it rather than itemizing. For most people, the standard deduction is the right call -- and it requires no recordkeeping or documentation. But for homeowners with significant mortgage interest, high state income or property taxes, or large charitable contributions, itemizing can still produce meaningful savings.
The 2026 Standard Deduction
| Filing Status | Standard Deduction |
|---|---|
| Single | $15,000 |
| Married Filing Jointly | $30,000 |
| Head of Household | $22,500 |
| Married Filing Separately | $15,000 |
Additional amounts for taxpayers age 65 or older or blind: $1,600 per qualifying condition (single/HOH) or $1,350 (married).
Main Itemized Deductions
- State and local taxes (SALT): Capped at $10,000 ($5,000 married filing separately). Includes state income tax or sales tax (whichever is higher) plus property taxes.
- Mortgage interest: Interest on up to $750,000 of acquisition debt on a primary and one secondary residence.
- Charitable contributions: Cash donations up to 60% of AGI; appreciated property up to 30% of AGI.
- Medical expenses: Only the portion exceeding 7.5% of AGI -- a high hurdle for most taxpayers.
- Casualty losses: Only for federally declared disasters.
The Breakeven Calculation
Add up your potential itemized deductions. If the total exceeds your standard deduction, itemizing saves you money. The excess over the standard deduction is your additional tax savings multiplied by your marginal rate.
Example: Married couple, $30,000 standard deduction. Their itemized deductions: SALT cap $10,000 + mortgage interest $18,000 + charitable giving $4,000 = $32,000. Itemizing saves them $2,000 in extra deductions x their 22% marginal rate = $440 in additional tax savings. Worth it -- if they have the records.
A different couple with only $12,000 in SALT (capped at $10,000) and $8,000 in mortgage interest: total itemized = $18,000, less than the $30,000 standard deduction. Standard deduction wins by $12,000, saving an additional $2,640 at the 22% rate.
The SALT Cap Problem for High-Tax States
Before 2018, state and local taxes were fully deductible. The $10,000 cap hit hardest in states with high income and property taxes -- New York, California, New Jersey, Illinois, Massachusetts. A homeowner in a New York City suburb might pay $15,000-25,000 in property taxes alone, but can only deduct $10,000 total. This significantly reduces the benefit of itemizing for many homeowners who would have itemized easily under the old rules.
When Itemizing Almost Always Wins
- Large mortgage on a high-value home (interest alone may exceed the standard deduction)
- Significant charitable giving (donor-advised funds can help concentrate deductions into one year)
- High unreimbursed medical expenses from a major illness or surgery
- Both spouses have high state income taxes plus property taxes hitting the SALT cap
Use our Income Tax Calculator to estimate your liability under both approaches, and our Standard Deduction vs. Itemized guide for a deeper comparison.
How to Actually Decide: A Practical Checklist
The question of standard vs. itemized deductions comes down to whether your qualifying expenses exceed the standard deduction for your filing status. For most people, the standard deduction wins — especially since the 2017 Tax Cuts and Jobs Act roughly doubled it. But for homeowners in high-tax states and those with significant charitable giving, itemizing can still make sense.
What Can Be Itemized?
- State and Local Taxes (SALT): Property taxes plus either state income taxes or state sales taxes. The SALT cap was raised to $40,000 for 2026 under the OBBBA (phasing out at higher incomes), up from the prior $10,000 cap — making itemizing much more attractive for high-tax-state residents.
- Mortgage interest: Interest on up to $750,000 of mortgage debt on your primary and one secondary residence.
- Charitable contributions: Cash donations to qualifying organizations, up to 60% of AGI.
- Medical expenses: Only the amount exceeding 7.5% of your AGI — a high threshold most people don't clear.
Who Should Run the Numbers in 2026
The expanded SALT cap makes 2026 the most important year to recalculate in nearly a decade. If you own a home in a state with high income or property taxes — California, New York, New Jersey, Illinois — your itemized total may now exceed the standard deduction for the first time since 2017. Add your mortgage interest (from Form 1098), property taxes, state income taxes paid (up to the new cap), and charitable contributions. If the total exceeds your standard deduction, itemizing wins.
Bunching: A Strategy for Those on the Border
If your itemized deductions are close to but slightly below the standard deduction, consider bunching charitable contributions. Instead of giving $5,000 per year, give $10,000 every other year. In the giving year, your itemized total may clear the threshold; in the off year, you take the standard deduction. Over two years, you've claimed the same total deductions but concentrated them into a single itemizing year. Donor-advised funds make this easy — you contribute a lump sum, get the deduction in one year, and distribute to charities on your own timeline.
See our 2026 standard deduction guide for full amounts by filing status, and use our income tax calculator to compare your estimated tax under both approaches.