Standard Deduction 2025: New Amounts, Senior Bonus, and When to Itemize

The standard deduction for 2025 is $15,750 for single filers and $31,500 for married couples filing jointly, with a new $6,000 senior bonus for filers age 65 and older with income below certain thresholds. These amounts were set by the One Big Beautiful Bill Act (OBBBA), which made the higher TCJA standard deduction permanent and added new benefits for seniors. Roughly 90% of taxpayers take the standard deduction, but the OBBBA's increase of the SALT cap to $40,000 means more homeowners may benefit from itemizing in 2025.

Use our Federal Income Tax Calculator to see exactly how the standard deduction affects your 2025 tax liability based on your income and filing status.

What Is the Standard Deduction for 2025?

The standard deduction is a flat dollar amount that the IRS subtracts from your gross income before calculating how much federal income tax you owe. It is available to all taxpayers who choose not to itemize their deductions on Schedule A. The standard deduction reduces your taxable income, which means the tax savings depend on your marginal tax bracket — a $15,750 deduction saves $3,465 for someone in the 22% bracket versus $5,512 for someone in the 35% bracket.

The Tax Cuts and Jobs Act of 2017 nearly doubled the standard deduction, and the OBBBA made those higher amounts permanent. Without the OBBBA, the standard deduction would have reverted to roughly $8,000 for single filers after 2025. Instead, the higher amounts are now locked in and adjusted annually for inflation by the IRS using the Chained Consumer Price Index (C-CPI-U).

2025 Standard Deduction by Filing Status

The following table shows the 2025 standard deduction amounts for each filing status, along with the additional amounts available for taxpayers who are blind or age 65 and older.

The additional amounts for age 65+ and blind are cumulative. A single filer who is both 65 and blind receives an additional $3,200 ($1,600 × 2) on top of the $15,750 base. For a married couple where both spouses are 65+, the additional amount is $2,600 ($1,300 × 2) on top of the $31,500 base.

The New Senior Standard Deduction Bonus

One of the most significant OBBBA provisions for retirees is the new $6,000 senior standard deduction bonus. This is a separate addition on top of both the base standard deduction and the existing age 65+ additional amount. It is available to filers age 65 or older with income below $75,000 (single) or $150,000 (married filing jointly).

The bonus phases out dollar-for-dollar above these thresholds. For a single filer, each dollar of income above $75,000 reduces the bonus by one dollar, fully eliminating it at $81,000. For married couples filing jointly, the phaseout begins at $150,000 and fully eliminates the bonus at $156,000.

This bonus stacks with the existing additional standard deduction for age 65+. A single filer who is 65 years old with $60,000 in income would receive: $15,750 (base) + $1,600 (age 65+) + $6,000 (senior bonus) = $23,350 total standard deduction. That effectively means the first $23,350 of income is tax-free, compared to $17,350 without the new bonus. At a 22% marginal rate, the senior bonus alone saves $1,320 in federal income tax.

Standard Deduction vs. Itemizing: Which Is Better?

The decision is straightforward: you should itemize only if your total Schedule A deductions exceed your standard deduction amount. If your itemized deductions total $28,000 and your standard deduction is $31,500 (MFJ), taking the standard deduction saves you more. Roughly 90% of taxpayers take the standard deduction because the TCJA's higher amounts made it difficult for most people to exceed it.

The most common itemized deductions are state and local taxes (SALT), mortgage interest, and charitable contributions. Under the old $10,000 SALT cap, many homeowners in high-tax states found that their itemized deductions barely approached the standard deduction. The OBBBA's increase of the SALT cap to $40,000 has changed this calculation significantly for many taxpayers.

Medical expenses are deductible only to the extent they exceed 7.5% of your AGI, which means they only help if you had very high medical costs relative to your income. Casualty and theft losses are generally only deductible if they result from a federally declared disaster.

How the Higher SALT Cap Changes the Itemizing Math

The SALT cap increase from $10,000 to $40,000 is a game-changer for homeowners in high-tax states like New York, California, New Jersey, and Connecticut. Under the old cap, a homeowner paying $20,000 in property taxes and $15,000 in state income tax could only deduct $10,000. Now they can deduct the full $35,000.

Consider a married couple filing jointly who pays $25,000 in state and local taxes and $12,000 in mortgage interest. Under the old SALT cap, their itemized deductions would total $10,000 (capped SALT) + $12,000 (mortgage interest) = $22,000 — well below the $31,500 standard deduction. Under the new $40,000 SALT cap, their itemized deductions total $25,000 + $12,000 = $37,000, exceeding the standard deduction by $5,500. That switch from standard to itemized saves them $1,210 in the 22% bracket.

Use our SALT Deduction Calculator to see exactly how the higher cap affects your itemizing decision based on your specific state taxes, property taxes, and mortgage interest.

Who Should Itemize in 2025?

With the new $40,000 SALT cap, the following groups are most likely to benefit from itemizing in 2025: homeowners with large mortgages who also live in high-tax states (combined SALT plus mortgage interest exceeds the standard deduction), generous charitable donors who make significant annual contributions, taxpayers with medical expenses exceeding 7.5% of their AGI, and those who suffered casualty losses in a federally declared disaster.

If you own a home in a state with high property taxes and state income taxes, the math has shifted dramatically in favor of itemizing. A dual-income couple in New Jersey paying $18,000 in property taxes, $12,000 in state income taxes, and $15,000 in mortgage interest now has $45,000 in potential itemized deductions (capped at $40,000 for SALT plus $15,000 mortgage interest = $55,000 total, with SALT at $30,000 capped). The exact calculation depends on your specific numbers.

For taxpayers who are on the fence, the Federal Income Tax Calculator can compare both options side by side. Enter your income and deduction details, and it will show you which approach produces a lower tax bill. Remember that you can switch between standard and itemized deductions each year — there is no obligation to be consistent.

Frequently Asked Questions

Can I switch between standard and itemized deductions each year?

Yes. You are free to take the standard deduction one year and itemize the next. There is no requirement to be consistent. Each year, calculate both options and choose whichever gives you the larger deduction. The only exception is if you are married filing separately and your spouse itemizes — in that case, you must also itemize.

Does the standard deduction reduce self-employment tax?

No. The standard deduction reduces your federal income tax by lowering your taxable income, but it does not affect self-employment tax. Self-employment tax (15.3%) is calculated on your net self-employment earnings on Schedule SE, before the standard deduction is applied. However, you can deduct half of your self-employment tax as an above-the-line adjustment on Schedule 1, which reduces your AGI.

What if my spouse itemizes on a separate return?

If you are married filing separately (MFS) and your spouse itemizes deductions on their return, you must also itemize. You cannot take the standard deduction. This rule prevents couples from gaining an advantage by having one spouse itemize large deductions while the other takes the full standard deduction. If this situation applies to you, consider whether filing jointly would produce a better combined result.

Is the senior bonus available to everyone over 65?

No. The new $6,000 senior standard deduction bonus has an income limit. It is available to filers age 65 or older with income below $75,000 (single) or $150,000 (married filing jointly). The bonus phases out dollar-for-dollar above these thresholds. This is separate from the existing additional standard deduction for age 65+ ($1,600 single, $1,300 married), which has no income limit and is available to all filers age 65 and older regardless of income.

Can I take the standard deduction and still claim tax credits?

Yes. The standard deduction and tax credits are completely separate parts of the tax calculation. You can take the standard deduction and still claim the Child Tax Credit, Earned Income Tax Credit, education credits, EV credits, the new above-the-line deductions for tips and overtime, and all other available credits. Credits reduce your tax liability directly (or increase your refund), while the standard deduction reduces your taxable income.