Standard Deduction vs. Itemizing: $32,200 for Married Couples in 2026

How the New 2026 Standard Deduction and Itemizing Rules Could Dramatically Change Your Tax Outcome

The 2026 filing season is shaping up to be one of the most important tax years in recent memory. With major changes to federal deductions, restored tax rules, and new income thresholds, taxpayers will need to re-evaluate one of the most fundamental filing decisions:
Should you take the standard deduction or itemize?

For the 2026 tax year (returns filed in 2027), the standard deduction is increasing significantly:

• $32,200 for Married Filing Jointly
• $16,100 for Single filers
• $24,150 for Head of Household

These new amounts, combined with returning tax rules such as the expanded SALT deduction cap, mean millions of households will need to reconsider which option yields the biggest savings.

This guide explains how to make the right choice for 2026.

Understanding the New 2026 Standard Deduction Amounts

The changes to the standard deduction reflect updated inflation adjustments and legislative shifts as portions of prior tax law sunset. For most taxpayers, these increases alone will significantly reduce taxable income.

2026 Standard Deduction Amounts

For millions of households, these higher numbers will make the standard deduction the simpler and more financially beneficial choice. But not for everyone.

When the Standard Deduction Makes the Most Sense

The standard deduction generally benefits taxpayers who:

• Do not have significant mortgage interest
• Live in states with lower income taxes or property taxes
• Have limited charitable contributions
• Have medical expenses below the 7.5 percent AGI threshold
• Have simple or straightforward tax situations

For many middle-income families, the $32,200 married filing jointly deduction will exceed the combined value of typical itemized deductions.

This means many taxpayers who previously itemized may now switch to the standard deduction in 2026.

When Itemizing Could Save You More in 2026

Even with the higher standard deduction, itemizing your deductions may still provide a larger tax benefit if your deductible expenses exceed the new standard amount.

Itemizing tends to benefit taxpayers who have:

1. Significant Mortgage Interest

Homeowners with higher interest payments or newly refinanced mortgages may see itemizing outperform the standard deduction.

2. Larger State and Local Taxes (SALT)

If the expanded SALT deduction cap is fully restored or raised in 2026, taxpayers in higher-tax states may benefit greatly from:

• State income taxes
• Property taxes
• Local taxes
• Real estate taxes

For many households, the SALT deduction alone could exceed the standard deduction.

3. High Medical Expenses

If you have medical costs exceeding 7.5 percent of your AGI, itemizing may provide a substantial advantage.

4. Charitable Contributions

Taxpayers who donate heavily to qualified charities can often exceed the standard deduction threshold.

5. Business or Job-Related Expenses

Certain unreimbursed expenses may qualify depending on current IRS rules for 2026.

Standard Deduction vs. Itemizing: How to Decide

Choosing between the standard deduction and itemizing in 2026 comes down to a simple comparison:

If your itemized deductions exceed the standard deduction for your filing status, itemize.
If not, take the standard deduction.

The IRS allows you to run both calculations using tax software before filing, making it easy to compare results.

Step-by-Step Approach

1. List all potential itemized deductions:
   • Mortgage interest
   • State and local taxes
   • Real estate taxes
   • Charitable giving
   • Medical expenses
   • Certain miscellaneous deductions
2. Total your itemized deductions.
3. Compare the total to your 2026 standard deduction amount.
4. Choose the higher value to reduce your taxable income and maximize savings.

How the New Standard Deduction Interacts with 2026 Tax Brackets

Higher standard deductions combined with new 2026 tax brackets mean two things:

1. Your taxable income starts lower, thanks to the larger deduction.
2. Your tax liability may fall, even if your income remains unchanged.

The combination of a wider standard deduction and updated bracket thresholds may produce thousands of dollars in savings for the average taxpayer.

For some families, itemizing will still deliver the best results, especially with mortgage interest or high SALT payments. However, the new standard deduction amounts will push many households back into simplified filing.

Special Considerations for Married Couples

Married couples filing jointly should pay close attention to:

• Combined mortgage interest
• Property tax totals
• AGI-driven medical thresholds
• Charitable contribution limits

With a $32,200 standard deduction, many dual-income households that previously itemized will find the standard deduction more favorable unless they have substantial housing, medical, or SALT-related expenses.

Why 2026 Is a Critical Re-Evaluation Year

The 2026 filing year marks the return of several pre-2018 tax rules that had been temporarily altered. These shifts may:

• Change whether you benefit more from itemizing
• Increase your potential SALT deduction
• Impact whether medical and job-related deductions apply
• Alter your taxable income via changes to tax brackets

Because so many variables are changing at once, taxpayers should run both standard and itemized calculations rather than assuming last year’s strategy will still apply.

The significantly increased standard deduction amounts for 2026 give taxpayers a generous baseline to reduce taxable income.
But for homeowners, high-tax-state residents, or charitable donors, itemizing may still produce a larger refund.

The smartest approach for 2026 is simple:
Calculate both options and choose the route that lowers your taxable income the most.

With higher standard deductions, returning itemization rules, and new tax brackets, 2026 will be a year where a careful comparison can lead to major savings.