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Tax

Itemize vs standard

SALT is capped at this year’s limit. High-MAGI SALT phase-down is not modeled. Tax difference uses wages only and the standard vs itemized deduction — no credits.

Deductions

Tax yearSets the standard deduction and the SALT cap used in this comparison.
Determines the standard deduction, SALT cap, and federal brackets for the tax difference.
Wages and other ordinary income before deductions.
$
State and local tax. Capped before it is added to the itemized total.
$
Deductible home-loan interest you would report if you itemize. Acquisition-debt limits are not modeled.
$
Cash-style charitable contributions. AGI percentage limits are not applied in this model.
$
Medical (above the AGI floor), casualty, or other Schedule A amounts you want included. Not broken out separately.
$

Itemize — extra deduction

$7,800

Itemized $40,000 vs standard $32,200

Tax if standard

$21,940

Tax if itemized

$20,224

How this itemize vs standard comparison is built

You get one federal deduction path: the standard deduction for your filing status, or itemized deductions if they add up to more. This page estimates both on wages only (no credits) so you can see which path is larger and what that does to federal tax.

What is added on the itemized side

  • SALT (state and local tax), capped at this year’s limit: $40,000 in 2025 and $40,400 in 2026 for most filers ($20,000 / $20,200 married filing separately). High-income SALT phase-down is not modeled.
  • Mortgage interest
  • Charitable gifts
  • Other itemized amounts you type (for example remaining medical over the AGI floor — you must do that math yourself)

The tool sums those lines, compares the total to the IRS standard deduction for the year and status, and runs federal tax both ways on wages minus the winning or losing deduction.

Worked example (2026, married filing jointly)

Standard deduction for joint filers in 2026 is $32,200. Suppose wages are $180,000, SALT is $28,000, mortgage interest is $14,000, and charity is $4,000.

  • Itemized total: $28,000 + $14,000 + $4,000 = $46,000
  • Standard: $32,200
  • Itemizing wins by $13,800 of extra deduction

That extra deduction is not $13,800 of tax savings. Tax savings is extra deduction × your marginal ordinary rate (and only if you actually itemize). If the last dollars of taxable income sit in 22%, the extra deduction is worth about 0.22 × $13,800 ≈ $3,036 in this simplified wages-only model.

If SALT + interest + charity stay under $32,200, the standard deduction still wins and you skip Schedule A.

After the higher SALT cap

The 2025 Act raised the SALT cap well above the old $10,000 limit. More homeowners in high-tax states will clear the standard deduction than in 2018–2024. That does not mean everyone in those states should itemize — renters with little mortgage interest often still take the standard deduction.

What this page leaves out

Credits, capital gains, AMT, PEASE-style haircuts, and MAGI SALT phase-down. A full return can change the winner. Confirm with tax software or a preparer.

Guide: itemize or take the standard deduction. Caps: This year — tax.

Frequently asked questions

Read itemize or standard

How is SALT capped?

State and local tax is limited to $40,000 in 2025 and $40,400 in 2026 for most filers ($20,000 / $20,200 married filing separately). High-income phase-down is not modeled.

Does a larger deduction always cut tax dollar-for-dollar?

No. The tax difference uses ordinary federal brackets on wages only. Credits, AMT, and state tax are omitted.

This year (2026)

All limits

Standard deduction (single)$16,100Standard deduction (joint)$32,200SALT cap (most filers)$40,400

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