Standard Deduction

What Is the Standard Deduction?

The standard deduction is a fixed dollar amount that US taxpayers subtract from their adjusted gross income (AGI) before calculating federal income tax. It is the default deduction for most Americans — simpler than itemizing, and for the majority of filers, larger than the total they could claim by itemizing.

By reducing taxable income, the standard deduction directly lowers your tax bill. A single filer taking the $14,600 standard deduction in 2026 saves between $1,460 (at 10%) and $5,402 (at 37%) in federal income tax, depending on their bracket.

2026 Standard Deduction Amounts

Filing Status	2026 Standard Deduction
Single	$14,600
Married Filing Jointly	$29,200
Married Filing Separately	$14,600
Head of Household	$21,900
Qualifying Surviving Spouse	$29,200

These amounts are adjusted each year for inflation by the IRS. The 2026 figures represent a modest increase over 2025.

Additional Deduction for Age and Blindness

Taxpayers who are 65 or older, or blind, receive an additional standard deduction amount layered on top of the base:

Status	Additional (65+ or blind)	Additional (65+ and blind)
Single / Head of Household	$2,000	$4,000
Married (any status) / Qualifying Surviving Spouse	$1,600	$3,200

A married couple where both spouses are 65+ can take $29,200 + $3,200 = $32,400 in standard deductions.

Standard Deduction vs Itemized Deductions

Every US taxpayer must choose between taking the standard deduction or itemizing — you cannot do both. You should itemize only if your eligible itemized deductions exceed the standard deduction for your filing status.

Common itemized deductions include:

• State and local taxes (SALT): Property, state income, or sales taxes — currently capped at $10,000
• Mortgage interest: On up to $750,000 of mortgage principal
• Charitable contributions: Cash and property donations to qualified organizations
• Medical expenses: Exceeding 7.5% of AGI
• Casualty and theft losses: From federally declared disasters only

Since the Tax Cuts and Jobs Act of 2017 nearly doubled the standard deduction, the percentage of Americans who itemize dropped from roughly 31% to about 11%. For most wage earners without significant mortgage interest, high property taxes, or major charitable giving, the standard deduction wins.

Who Cannot Take the Standard Deduction?

Some taxpayers are not eligible for the standard deduction:

• Married filing separately, if the spouse itemizes
• Non-resident aliens (for most of the year)
• Estates and trusts
• Dual-status aliens in their first and last year

If you are a non-resident alien earning US-source income, you generally cannot take the standard deduction and must itemize (subject to any applicable tax treaty provisions).

Dependents and the Standard Deduction

For a taxpayer claimed as a dependent on someone else’s return, the standard deduction is limited to the greater of:

• $1,300 (2026), or
• Earned income + $450 (up to the regular standard deduction limit)

This prevents a dependent from using the full standard deduction to shelter unearned income such as investment earnings.

How It Differs from International Equivalents

Country	Equivalent	2026 Amount
United States	Standard Deduction	$14,600 (single)
United Kingdom	Personal Allowance	£12,570
Canada	Basic Personal Amount	CA$15,705
Australia	Tax-Free Threshold	A$18,200
India	Standard Deduction	₹75,000 (salaried, new regime)

India’s ₹75,000 standard deduction for salaried employees was introduced in 2019 and applies under both the old and new tax regimes — though the mechanics differ from the US version.

State Standard Deductions

Most US states that have an income tax offer their own standard deduction, separate from and often smaller than the federal version. A few states, including California and New York, have their own schedules. Some states like Pennsylvania have no standard deduction at all, taxing all income above zero.

When estimating your total state + federal tax burden, remember to use each jurisdiction’s own standard deduction separately. Tax Atlas’s US calculator handles the federal portion; state tax calculations are coming in a future update.

Inflation Adjustments

The standard deduction amount is indexed to the Chained Consumer Price Index for Urban Consumers (C-CPI-U). The IRS announces adjustments each fall for the coming tax year. Because the standard deduction grows with inflation, it preserves its real value over time — unlike the UK’s frozen personal allowance, which has lost significant purchasing power since 2021.

Practical Tips

1. Run the numbers before assuming. If you have significant mortgage interest, high property taxes in a state like New Jersey or Illinois, or major charitable giving, itemizing may beat the standard deduction even after the 2017 changes.
2. Bunching strategy. If your itemizable deductions hover near the standard deduction threshold, consider “bunching” — making two years of charitable donations in one year to itemize, then taking the standard deduction the next year. This maximizes the total deduction across both years.
3. SALT cap planning. The $10,000 SALT cap is a binding constraint for many high-earning residents of high-tax states. Track whether this cap is extended, modified, or repealed by Congress.

Key Takeaway

The standard deduction is the simplest and most common way for US taxpayers to reduce taxable income — $14,600 for single filers in 2026. Most Americans take it without itemizing. Use the US income tax calculator to see your federal tax after the standard deduction is applied.