What Is the Standard Deduction?
The standard deduction is a flat dollar amount the IRS lets you subtract from gross income before calculating federal income tax. It’s the simplest way to reduce your taxable income — no receipts, no itemized lists required.
2025 Standard Deduction Amounts
| Filing Status | Standard Deduction |
|---|---|
| Single | $14,600 |
| Married Filing Jointly | $29,200 |
| Married Filing Separately | $14,600 |
| Head of Household | $21,900 |
Additional amounts for age 65+ or blind:
- Single: +$1,950
- Married (per qualifying spouse): +$1,550
Standard Deduction vs. Itemizing
You claim either the standard deduction OR your itemized deductions — whichever is larger. Common itemized deductions include:
- Mortgage interest — up to $750,000 in loan principal
- State and local taxes (SALT) — capped at $10,000
- Charitable contributions — up to 60% of AGI
- Medical expenses — above 7.5% of AGI
After the Tax Cuts and Jobs Act (2017) nearly doubled the standard deduction, about 90% of Americans now use the standard deduction.
Who Should Itemize?
Itemizing makes sense if your deductible expenses exceed your standard deduction. Common scenarios:
- Homeowners with large mortgage interest payments
- High earners in high-tax states (though SALT is capped at $10k)
- People with large charitable giving
Impact on Your Paycheck
The standard deduction directly reduces the income your employer withholds tax on. A single filer earning $60,000 pays federal tax on only $45,400 ($60,000 − $14,600). This alone saves roughly $1,750+ in federal taxes versus paying tax on the full $60,000.
Use our Paycheck Calculator to see exactly how the standard deduction affects your take-home pay.