Standard Deduction
Definition
A fixed dollar amount that reduces the amount of income subject to tax, available to all taxpayers who do not itemize deductions.
The standard deduction is a specific dollar amount that the IRS allows taxpayers to subtract from their adjusted gross income, reducing the amount of income subject to federal taxes. It simplifies tax filing by eliminating the need to track and document individual deductible expenses.
For the 2025 tax year, the standard deduction is $15,000 for single filers, $30,000 for married filing jointly, and $22,500 for head of household. These amounts are adjusted annually for inflation. An additional standard deduction is available for taxpayers who are blind or age 65 and older.
Taxpayers choose between the standard deduction and itemizing. If your itemized deductions exceed the standard deduction, itemizing saves more. Since the Tax Cuts and Jobs Act nearly doubled the standard deduction, roughly 90% of taxpayers now take the standard deduction rather than itemizing.
Related Calculators
Related Terms
Itemized Deduction
financeSpecific expenses that taxpayers can list on their tax return to reduce taxable income, as an alternative to taking the standard deduction.
Tax Deduction
financeAn expense that can be subtracted from gross income to reduce the amount of income subject to taxation.
Taxable Income
financeThe portion of your gross income that is subject to income tax after all deductions, exemptions, and adjustments have been applied.
Tax Bracket
financeA range of income levels taxed at a specific rate within a progressive tax system where higher income is taxed at higher rates.
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