Itemized vs Standard Deduction Calculator
Plug in your expenses below. The calculator tells you whether itemizing or taking the standard deduction puts more money back in your pocket for 2026.
Filing Status
Age 65 or Older?
Adds $2,050 (single/HoH) or $1,650 (MFJ/MFS) per person to your standard deduction. The separate OBBB $6,000 senior deduction applies regardless of itemizing or standard.
Adjusted Gross Income (AGI)
Mortgage Interest Paid
On acquisition debt up to $750K (post-Dec 2017 loans). Pre-Dec 2017 loans: $1M limit.
State & Local Taxes (SALT)
Income or sales tax + property tax. Capped at $40,400 for 2026 ($20,200 MFS), with phase-down above $505K AGI.
Charitable Contributions
New for 2026: only the amount above 0.5% of AGI is deductible. Also subject to 60% AGI cap for cash donations.
Medical & Dental Expenses
Only amounts exceeding 7.5% of your AGI are deductible.
Other Deductions
Casualty/theft losses (declared disasters only), gambling losses (up to winnings), investment interest, etc.
Itemized Deduction Breakdown
Estimates for informational purposes only. Not tax or legal advice. Consult a tax professional for accuracy.
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Standard Deduction vs. Itemized Deductions: How to Choose
The standard deduction is a flat dollar amount that lowers your taxable income, no receipts needed. Itemized deductions are the actual expenses you list on Schedule A. Pick whichever one is bigger; both reduce taxable income dollar-for-dollar.
Since the One Big Beautiful Bill Act (OBBB) raised the standard deduction, only about 11% of filers come out ahead by itemizing. The people who do tend to be homeowners carrying large mortgages, taxpayers in high-tax states, or people who give a lot to charity.
How much you actually save in taxes depends on your bracket. A $5,000 larger deduction is worth $1,100 at the 22% rate, but $1,850 at 37%.
Standard Deduction by Filing Status and Age (TY 2026)
| Filing Status | Under 65 | One Filer 65+ | Both 65+ |
|---|---|---|---|
| Single | $16,100 | $18,150 | — |
| Married Filing Jointly | $32,200 | $33,850 | $35,500 |
| Head of Household | $24,150 | $26,200 | — |
| Married Filing Separately | $16,100 | $17,750 | — |
2026 Itemized Deduction Categories and Limits
- Medical & Dental Expenses: Only the portion above 7.5% of AGI counts (IRC Sec. 213). This covers doctor visits, hospital bills, prescriptions, dental, vision, health insurance premiums you pay yourself, and Medicare premiums.
- State & Local Taxes (SALT): Capped at $40,400 for TY 2026, phasing down once AGI tops $505,000 (OBBB Sec. 70120). You can deduct state/local income tax or sales tax (pick one), plus property taxes.
- Mortgage Interest: Applies to the first $750,000 of acquisition debt (OBBB Sec. 70108, now permanent). Loans taken before December 2017 still use the old $1,000,000 limit.
- Charitable Contributions: Now subject to a 0.5% AGI floor (OBBB Sec. 70425). Cash donations to public charities are also capped at 60% of AGI.
- Casualty Losses: Allowed only for federally or state-declared disasters (OBBB Sec. 70109).
- Gambling Losses: Can't exceed your reported gambling winnings.
- Miscellaneous Deductions: Gone for good (OBBB Sec. 70110), except educator expenses, which remain above the line.
Key Changes Under the One Big Beautiful Bill Act
Without the OBBB, the standard deduction was set to drop back to roughly $8,000/$16,000 in 2026. Instead, it was locked in at the higher amount. The SALT cap also jumped from $10,000 to $40,000+ with 1% annual bumps through 2029. Charitable deductions now have a 0.5% AGI floor, a new Sec. 68 limitation replaces the old Pease limitation (only matters for very high earners), and the $750K mortgage interest cap is permanent.
Medical Expense Deduction Threshold (TY 2026)
| AGI | 7.5% Floor | Must Exceed to Deduct |
|---|---|---|
| $50,000 | $3,750 | First $3,750 not deductible |
| $75,000 | $5,625 | First $5,625 not deductible |
| $100,000 | $7,500 | First $7,500 not deductible |
| $150,000 | $11,250 | First $11,250 not deductible |
| $200,000 | $15,000 | First $15,000 not deductible |
| $300,000 | $22,500 | First $22,500 not deductible |
| $500,000 | $37,500 | First $37,500 not deductible |
Strategies to Maximize Your Deductions
- Bunching: Concentrate charitable giving into alternating years so you clear the standard deduction threshold in "on" years, then take the standard deduction in "off" years.
- Donor-advised funds: Drop a large lump sum into a DAF, itemize that year, then distribute grants at your own pace.
- Time your medical expenses: If you can schedule elective procedures, group them in a year when you'll clear the 7.5% AGI floor.
- Prepay property taxes: Still under the SALT cap? Pay your December property tax bill before January 1.
- Check your state rules: Some states have a lower standard deduction than the federal one, so itemizing on your federal return can still save you money at the state level.
- Keep your receipts: Hang on to records for charitable donations, medical bills, and property tax payments all year. You'll need them if you itemize.
Frequently Asked Questions
Quick answers on itemizing vs. the standard deduction
What is the standard deduction for 2026?
For tax year 2026, single filers and married-filing-separately filers get $16,100. Married filing jointly is $32,200, and head of household is $24,150. If you're 65 or older, add $2,050 (single/HoH) or $1,650 (MFJ/MFS) per qualifying person. These numbers come from the One Big Beautiful Bill Act.
When should I itemize instead of taking the standard deduction?
Itemize when your total qualifying expenses (mortgage interest, state and local taxes, charitable donations, medical costs) add up to more than your standard deduction. Homeowners with large mortgages, people in high-tax states, and big charitable givers are the ones who usually benefit. Right now, only about 11% of filers come out ahead by itemizing.
What is the SALT deduction cap for 2026?
For TY 2026, the SALT deduction tops out at $40,400 ($20,200 if married filing separately). Once your AGI passes $505,000 ($252,500 MFS), the cap shrinks by 30 cents per dollar, but it never falls below $10,000. It goes up by 1% each year through 2029, then drops back to $10,000 in 2030.
How does the medical expense deduction work?
The IRS only lets you deduct the portion that exceeds 7.5% of your adjusted gross income (AGI). So if your AGI is $80,000, the first $6,000 of medical costs doesn't count. After that, doctor visits, hospital bills, prescriptions, dental, vision, premiums you pay out of pocket, and Medicare premiums all qualify.
What is the new charitable contribution floor for 2026?
Under the OBBB (Sec. 70425), you can only deduct charitable contributions above 0.5% of your AGI. If your AGI is $100,000, the first $500 of giving doesn't count. Cash donations to public charities are also capped at 60% of AGI, same as before.
Can I itemize on my federal return and take the standard deduction on my state return?
It varies by state. Some states force you to match your federal method. Others let you pick independently. If your itemized and standard amounts are close, look up your state's rules: you might save money by itemizing federally even when the federal difference is small, because many states have a lower standard deduction.
What is the Sec. 68 limitation on itemized deductions?
The OBBB (Sec. 70111) replaced the old Pease limitation with this new rule. If your AGI is above the 37% bracket threshold ($640,600 single, $768,700 MFJ), your itemized deductions get trimmed by 2/37 (about 5.4%) of the lesser of your total itemized deductions or the amount your income exceeds that threshold. In practice, this only hits very high earners.
Does the $6,000 senior deduction affect my standard deduction choice?
No. That $6,000 deduction (OBBB Sec. 70103, for filers 65+) is above the line, so you get it whether you itemize or not. It has no effect on the standard-vs.-itemized comparison. It does phase out once AGI exceeds $75,000 ($150,000 MFJ).
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