Taxes

What Is the Standard Deduction?

The standard deduction is a fixed amount that US taxpayers can subtract from their income before federal income tax is calculated, without listing individual expenses. The amount depends on filing status and is adjusted for inflation each year. Taxpayers can instead itemize deductions if their eligible expenses are larger.

How It Works

Taxable income = adjusted gross income − standard deduction (or itemized deductions). A higher deduction means lower taxable income and therefore lower tax.

Standard vs. Itemized Deduction

Itemizing means listing specific deductible expenses, such as certain mortgage interest, state and local taxes (subject to limits), and charitable gifts. A taxpayer generally uses whichever total is higher.

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🧾 2026 Federal Tax Bracket Calculator Calculate your federal income tax using official 2026 IRS brackets and standard deduction. Calculate → 💰 Paycheck Calculator (2026) Estimate your take-home pay using official 2026 federal tax brackets and FICA rates. Calculate → 📊 Effective vs. Marginal Tax Rate Calculator See exactly how your income is taxed bracket by bracket. Calculate →

🔗 Related Terms

Taxable Income Tax Bracket Tax Credit

More Taxes Terms

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Last updated: September 27, 2026. This definition is for general educational purposes only. It is not financial, investment, tax, legal, or medical advice, and it does not recommend any product or course of action. For decisions about your own situation, consult a qualified professional.