Standard Deduction

tax

Also known as: standard deduction

Updated · Written and reviewed by Konstantin Iakovlev

Detailed explanation

Almost 90% of US taxpayers use the standard deduction (vs. itemizing) since the 2017 Tax Cuts and Jobs Act roughly doubled it. Taxpayers age 65+ or blind get additional standard-deduction amounts ($2,050 single / $1,650 MFJ in 2026). The standard deduction subtracts from AGI to produce taxable income, which then flows through the federal tax brackets. You cannot also take the standard deduction AND itemize — it's one or the other. Itemizing is mostly worth it for homeowners with large mortgage interest + state/local taxes (SALT) above the relevant threshold.

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Related tax terms

Adjusted Gross Income (AGI)

Adjusted Gross Income (AGI) is your total gross income minus specific "above-the-line" deductions like contributions to ...

Modified Adjusted Gross Income (MAGI)

Modified Adjusted Gross Income (MAGI) is your AGI plus certain deductions added back, used to determine eligibility for ...

Marginal Tax Rate

Your marginal tax rate is the rate applied to your last dollar of taxable income — the bracket your highest-earning doll...

Effective Tax Rate

Your effective tax rate is your total tax liability divided by your total income — the blended average across all tax br...

Capital Gains

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