8521 / What is the standard deduction?

Editor’s Note: The 2017 tax reform legislation (and extended by the One Big Beautiful Bill) roughly doubled the standard deduction to $24,000 per married couple ($30,000 for 2025 and $31,500 for 2026) and $12,000 per individual ($15,000 for 2025 and $15,750 for 2026). For heads of households, the standard deduction was increased to $18,000 ($22,500 for 2025 and $23,625 for 2026). For married taxpayers filing separate returns, the standard deduction was $12,000 ($15,000 for 2025 and $15,750 for 2026).¹

The standard deduction is one of two “below-the-line” deduction options available to taxpayers. In other words, once a taxpayer determines adjusted gross income (gross income minus above the line deductions), the taxpayer may also deduct the sum of their exemptions and the greater of 1) the standard deduction; or 2) the sum of their itemized deductions (see Q 8524).²

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Planning Point: Because of the increased standard deduction and the elimination of many itemized deductions, more taxpayers now choose the standard deduction under the 2017 tax reform law. Those taxpayers who wish to take advantage of the remaining itemized deductions (for example, the deduction for charitable contributions) can benefit from planning to “bunch” those deductions into a single tax year in order to ensure that itemized deductions exceed the expanded standard deduction.

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Taxpayers who do not itemize and who are age 65 or older or blind are entitled to increase their standard deduction. In 2025, taxpayers who are married or are surviving spouses are each entitled to an additional deduction of $1,600 if age 65 or older, as well as an additional $1,600 deduction if blind. The additional standard deduction is $2,000 for 2025 for unmarried taxpayers age 65 or older as well as $2,000 for 2025 for unmarried blind taxpayers.³

In 2026, taxpayers who are  married or are a surviving spouse are each entitled to a deduction of $1,600 plus an additional $6,000 if 65 or older for a total deduciton of $7,600. The annual standard deduction for unmarried taxpayers age 65 or older will be $2,000 plus an additional $6,000 for a total deduction of $8,000. The additional senior deduction phases out at modified adjusted gross income levels above $75,000 for individuals and $150,000 for couples filing jointly and cannot be claimed if modified adjusted gross income exceeds $175,000 per individual and $250,000 for a couple.This additional deduction is set to expire at the end of 2028.