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.
The SALT Cap Change in 2026: Most Important Development Since 2017
The One Big Beautiful Bill Act raised the SALT deduction cap from $10,000 to $40,000 for 2026 (with a phase-out for high earners). This is the single biggest change to the itemizing calculation since the TCJA set the $10,000 cap in 2018. For homeowners in high-tax states who previously itemized but found the $10,000 cap made their total deductions fall below the standard deduction, recalculating for 2026 is essential. A homeowner who pays $12,000 in property taxes and $10,000 in state income tax now has $22,000 of SALT deductions available -- compared to $10,000 under the old cap. Combined with mortgage interest and charitable giving, many of these taxpayers will find itemizing worthwhile again.
Itemizing Requires Records
Taking the standard deduction requires no documentation beyond your W-2. Itemizing requires Schedule A, organized records for all claimed deductions, and in some cases additional forms. Charitable contributions over $250 require written acknowledgment from the organization -- not just a bank record. Donations of non-cash property over $5,000 require a qualified appraisal. Medical expenses require receipts and insurance EOB statements. Mortgage interest comes from Form 1098 provided by your lender. If you decide to itemize, gather these documents before your appointment with a tax professional or before sitting down with tax software -- missing documentation is the most common cause of inaccurate itemized returns and delayed processing.
Itemizing and the AMT
If you are subject to the Alternative Minimum Tax, most itemized deductions are either disallowed or recalculated under AMT rules. The SALT deduction is completely disallowed under the AMT system. Miscellaneous itemized deductions are also disallowed. Mortgage interest is allowed under the AMT but only for acquisition debt, not home equity lines. If your regular tax itemized deductions bring you close to AMT territory, run an AMT calculation to verify that itemizing still produces a lower total tax than the standard deduction would after AMT adjustments.