How to Know If You Should Itemize or Take the Standard Deduction

Compare your itemized deductions to the standard deduction amount to see which saves you more money on taxes.

1. Know your standard deduction amount. The standard deduction is a flat amount the IRS lets you subtract from your income. For 2026, it's $14,600 for single filers and $29,200 for married couples filing jointly. These amounts increase slightly each year for inflation.
2. Add up your potential itemized deductions. Itemizing means listing specific deductions instead of taking the standard amount. The big ones are state and local taxes (capped at $10,000), mortgage interest, charitable donations, and medical expenses over 7.5% of your income. Add these up to get your total.
3. Compare the two numbers. If your itemized deductions total more than your standard deduction, itemize. If they're less, take the standard deduction. You can't do both — pick whichever gives you the bigger tax break.
4. Consider the hassle factor. Itemizing requires keeping receipts and filling out Schedule A, which takes more time and paperwork. If your itemized deductions are only slightly higher than the standard amount — say, within a few hundred dollars — the standard deduction might be worth it for simplicity.
5. Run the numbers before you file. Most tax software calculates both options and picks the better one automatically. If you're doing taxes by hand, calculate your tax liability both ways to see which results in lower taxes owed or a bigger refund.