Standard Deduction
Tax Glossary Term
Definition
The standard deduction is a fixed dollar amount the IRS lets you subtract from your Adjusted Gross Income before calculating the tax you owe. It exists so that taxpayers who do not have enough qualifying expenses to itemize can still reduce their taxable income. For the 2026 tax year, the standard deduction is $16,100 for single filers, $32,200 for married filing jointly, and $24,150 for head of household. Taxpayers age 65 or older and those who are blind receive an additional standard deduction amount on top of the base figure. Under the OBBBA, seniors may also claim the new $6,000 senior bonus deduction in addition to the regular standard deduction. You choose either the standard deduction or itemized deductions — whichever is larger. About 90% of taxpayers take the standard deduction because it is simpler and, since the 2018 near-doubling, usually larger than their itemized total. The standard deduction is adjusted annually for inflation using the chained Consumer Price Index (C-CPI-U). Importantly, above-the-line deductions like the Schedule 1-A tips and overtime deductions reduce AGI before the standard deduction is applied, so you benefit from both.
Example
AGI: $75,000
Standard deduction (single, 2026): -$16,100
Taxable income: $58,900