Should I itemize or take the standard deduction?
Add up your deductions under the 2026 limits and see which choice lowers your federal tax, and by how much.
Filing status
ITEMIZING SAVESITEMIZE
$2,687
Your itemized deductions come to $28,297 against $17,100 for the standard deduction ($16,100 plus $1,000 of gifts that non-itemizers may deduct), so itemizing lowers your federal income tax by $2,687, from $22,250 to $19,563.
Itemized
$28,297
Standard
$17,100
State + local tax
$14,000
Tax if itemized
$19,563
UNDERSTAND YOUR RESULT
Itemized against standard
ItemizedStandard
Deduction
$28k
$17k
Federal income tax
$20k
$22k
Itemized, you deduct $28,297 and pay $19,563 of federal income tax; with the standard deduction you deduct $17,100 and pay $22,250. Itemizing saves $2,687.
How your itemized deductions add up
State and local taxes count $14,000, mortgage interest $12,000, charity $2,297 and medical $0: $28,297 in all.
What each line allows at your income
| Line | You paid | Counts | Why |
|---|---|---|---|
| State and local tax | $14,000 | $14,000 | Under the $40,400 cap |
| Mortgage interest | $12,000 | $12,000 | Counted in full, on up to $750,000 of loans |
| Charity (cash) | $3,000 | $2,297 | Only the part above 0.5% of income ($703) counts when itemizing |
| Medical and dental | $0 | $0 | Only the part above 7.5% of income ($10,549) counts |
The 2026 rules: state and local taxes cap at $40,400 (falling 30 cents per dollar of income above $505,000, to a floor of $10,000); itemizers deduct gifts only above 0.5% of income; medical costs count above 7.5% of income. Someone who takes the standard deduction may still deduct up to $1,000 of cash gifts.
What moves the needle
Each row re-runs the calculation with one change. Click to apply.How it's computed
FORMULA
Itemized = state and local tax (up to the cap) + mortgage interest + gifts above 0.5% of income + medical above 7.5% of income + other, less 2/37 of the smaller of that total and income above where the 37% bracket begins
Standard total = the 2026 standard deduction + cash gifts up to $1,000 ($2,000 joint)
State and local tax cap = $40,400 − 30% × (income − $505,000), never below $10,000
Savings from itemizing = federal income tax with the standard total − federal income tax with the itemized total
- Federal income tax is computed on the 2026 brackets for single filers from your adjusted gross income, with no other adjustments, credits or deductions. The standard deduction is $16,100 (single), $24,150 (head of household) or $32,200 (joint).
- The State and local tax cap of $40,400 for 2026 applies to income, sales and property tax together; it falls by 30 cents for each dollar of modified adjusted gross income above $505,000, to a floor of $10,000. Married filing separately, where these limits are halved, is not modelled.
- Cash gifts are counted up to 60% of income; larger gifts carry forward and are not counted. Gifts of property, carryovers from earlier years and the mortgage debt limit are not modelled: enter interest on no more than $750,000 of qualifying loans.
- Age and blindness additions to the standard deduction, mortgage insurance premiums, casualty losses, the alternative minimum tax and state income tax are not modelled.
- The result is a comparison for one tax year. Two-year “bunching” of gifts or property tax, which can make itemizing worthwhile every other year, is something you can test by entering two years of gifts in one.
WORKED EXAMPLE · SAMPLE NUMBERS
Itemized: $14,000 state and local tax + $12,000 mortgage interest + $2,297 charity = $28,297. Standard: $16,100 + $1,000 of gifts = $17,100. Tax: $19,563 itemized against $22,250 standard, a difference of $2,687.
SOURCES
[1]26 U.S.C. § 164: taxes (state and local tax limit, § 164(b)(6)-(7))Legal Information Institute, Cornell Law School[2]26 U.S.C. § 68: overall limitation on itemized deductionsLegal Information Institute, Cornell Law School[3]26 U.S.C. § 170: charitable contributions (0.5% floor, 60% cash limit, non-itemizer deduction)Legal Information Institute, Cornell Law School[4]Publication 505 (2026), Tax Withholding and Estimated Tax: what is new for 2026Internal Revenue Service[5]Publication 502, Medical and Dental ExpensesInternal Revenue Service[6]Publication 936, Home Mortgage Interest DeductionInternal Revenue Service[7]Rev. Proc. 2025-32: 2026 inflation-adjusted tax items (brackets, standard deduction)Internal Revenue Service, 2025HSBuilt by Hussain Sehorewala · checked against worked examples · Sep 29, 2026
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Questions about this result
When your allowed itemized deductions add up to more than the standard deduction, which for 2026 is $16,100 for a single filer, $24,150 for a head of household and $32,200 on a joint return. The usual big lines are state and local taxes, mortgage interest and charitable gifts. If they fall short, take the standard deduction.
State and local income (or sales) and property taxes together can be deducted only up to $40,400 in 2026. The limit falls by 30 cents for every dollar of income above $505,000 and stops falling at $10,000. The $10,000 cap of earlier years has been raised for 2025 through 2029.
A little. Starting in 2026, non-itemizers may deduct up to $1,000 of cash gifts to public charities ($2,000 on a joint return) on top of the standard deduction. Itemizers can deduct gifts only above 0.5% of their income, so small gifts add nothing when itemizing.
Medical and dental expenses count only for the part above 7.5% of your adjusted gross income, so they help mainly in a year with large costs or low income.
Starting in 2026, if your income reaches the 37% bracket, your itemized deductions are cut by 2/37 of the smaller of your itemized total and the income above where that bracket begins ($640,600 single, $768,700 joint). It does not affect the standard deduction.
Interest on up to $750,000 of loans taken out to buy, build or improve your main or second home ($375,000 if married filing separately). Older loans from before December 16, 2017 can have a $1 million limit. Enter the interest that falls within the limit.
Yes, this is a common approach: pay two years of gifts or property tax in one year to itemize that year and take the standard deduction the next. Enter the two years together to see the result for the itemizing year.
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