Standard vs itemized deduction.

Worked example

A married couple filing jointly has AGI of $150,000, $14,000 of mortgage interest, $15,000 of state and local taxes, and $3,000 of cash gifts to charity. Taxes are under the $40,400 cap, so all $15,000 counts. Charity counts only above 0.5% of AGI ($750), so $2,250. Itemized total: $14,000 + $15,000 + $2,250 = $31,250. The standard deduction for joint filers is $32,200, and because they do not itemize they can also deduct up to $2,000 of cash gifts, so the standard side is $34,200. Standard wins by $2,950.

How the calculation works

1. Standard side. The 2026 base amount for your filing status ($16,100 single or married filing separately, $32,200 married filing jointly, $24,150 head of household), plus the additional amount for each box checked for age 65 or older or blindness ($1,650 each, or $2,050 each if unmarried and not a surviving spouse).
2. Charity if you do not itemize. Taxpayers who take the standard deduction may also deduct cash gifts up to $1,000 ($2,000 on a joint return). This tool adds that to the standard side.
3. State and local taxes (SALT). Capped at $40,400 for 2026 ($20,200 married filing separately). The cap shrinks by 30% of AGI above $505,000 ($252,500 married filing separately) but never below $10,000 ($5,000 married filing separately).
4. Charity if you itemize. Cash and non-cash gifts count only to the extent they exceed 0.5% of AGI. This tool does not apply the percentage-of-AGI ceilings, which matter only for very large gifts.
5. Medical. Only the part of unreimbursed medical expenses above 7.5% of AGI counts.
6. Verdict. Your itemized total is compared with the standard side and the larger one is recommended, with the dollar difference.

Sources and as-of date

Verified October 1, 2026 for tax year 2026. Standard deduction and additional amounts: IRS Revenue Procedure 2025-32 section 3.15, announced in IRS release IR-2025-103. SALT cap, phase-down and floor: 26 U.S.C. 164(b)(6)-(7); the MFS halving matches the Schedule A instructions, which publish the 2025 figures. Charity floor and non-itemizer deduction: 26 U.S.C. 170. Medical 7.5% floor: 26 U.S.C. 213.

What this tool leaves out

The additional $6,000 deduction for people 65 and older (2025 through 2028) is the same whether you itemize or not, so it does not change which option is larger and is left out; see the IRS overview. Also not modelled: the limit on the tax value of itemized deductions for the 37% bracket, gambling losses, casualty losses, state rules, and the rule that you cannot take the standard deduction if your spouse itemizes on a separate return.

FAQ

Do I have to itemize if my itemized total is only slightly larger?

No. You choose the larger result, and the choice is yours each year. If the gap is small, the effort of keeping receipts may not be worth it.

Why is my SALT limited?

Even if you paid more, the deduction stops at the cap. For 2026 that is $40,400, reduced for AGI above $505,000.

What counts as mortgage interest here?

Enter interest you can actually deduct. If your loan is above the $750,000 limit, use the mortgage interest deduction calculator first.

Why does my charity counted differ from what I gave?

Itemizers lose the first 0.5% of AGI of gifts. Non-itemizers can deduct cash gifts only, up to $1,000 ($2,000 joint).

Related tools

• Federal taxMortgage Interest Deduction CalculatorApply the debt limit before you enter interest here.
• Federal taxStudent Loan Interest DeductionEstimate a deduction that applies whether or not you itemize.
• Federal taxQuarterly Estimated Tax CalculatorPlan payments after your deductions change your tax.
• U.S. payrollPaycheck CalculatorSee how withholding and deductions change take-home pay.