Standard Deduction

How It Works

The standard deduction is a no-questions-asked reduction in taxable income that most Americans claim. For 2025, the amounts are $15,000 for single filers, $30,000 for married filing jointly, and $22,500 for head of household. Taxpayers age 65 or older or who are blind receive additional standard deduction amounts. The Tax Cuts and Jobs Act of 2017 roughly doubled the standard deduction, which dramatically reduced the number of Americans who itemize, from about 30% to roughly 10%. You should only itemize if your total itemized deductions (mortgage interest, state and local taxes, charitable contributions, etc.) exceed the standard deduction. The standard deduction directly reduces your taxable income, not your tax bill. If you're in the 22% bracket, a $15,000 standard deduction saves you $3,300 in federal tax. Some taxpayers benefit from "bunching", alternating between standard and itemized deductions in different years by concentrating charitable donations or other deductible expenses into a single year. The standard deduction is indexed to inflation and typically increases each year, gradually benefiting more taxpayers over time.

Standard Deduction is one of the tax-code concepts that recurs across TaxCompare. The definition above is the technical answer; below is the practical context for how it shows up in the state-vs-state comparisons that drive the site.

In the tax-comparison engine, this concept feeds either the federal calculation (IRS Revenue Procedures) or the state calculation (Tax Foundation state-tax database). The methodology page describes which inputs flow into each piece of the model.