How this calculator works
Adds up what Schedule A would allow in 2026 — mortgage interest, state and local taxes up to the new limit ($40,400, reduced above $505,000 of income), charitable gifts above the new 0.5%-of-AGI floor, and medical costs above 7.5% of AGI — and compares the total with your standard deduction plus the new deduction of up to $1,000 ($2,000 joint) of cash gifts that non-itemizers get from 2026. It shows the federal tax both ways.
- Standard side = standard deduction ($16,100 single, $32,200 joint, $24,150 head of household, plus $1,650 or $2,050 per box for age 65+ or blind) + cash gifts up to $1,000 ($2,000 joint).
- State and local taxes allowed = paid, up to $40,400 for 2026 (half on a separate return), reduced by 30% of AGI over $505,000 but never below $10,000.
- Charity allowed when itemizing = gifts − 0.5% of AGI. Medical allowed = expenses − 7.5% of AGI.
- Itemize if mortgage interest + state and local taxes + charity + medical + other > the standard side.
Worked example
With these inputs: filing status Single; adjusted gross income $120,000; boxes for age 65+ or blind 0; mortgage interest $9,000; state and local income (or sales) + property taxes $11,000; charitable gifts $3,000; medical and dental expenses $0; other itemized deductions $0.
The result is itemize: deductions are larger by $5,300.00, with standard deduction $16,100.00 and plus charity deduction for non-itemizers $1,000.00. Married couples filing separately must both itemize or both take the standard deduction. The tips, overtime and senior deductions are allowed either way, so they don't change this choice. A planning estimate under 2026 federal rules, not tax advice. It leaves out state tax, AMT, capital-gain rates and most credits.
What's new for 2026 deductions
Three changes from the 2025 tax law shift the math. The state and local tax (SALT) limit is far higher: $40,400 for 2026 ($20,200 married filing separately), up from $10,000 before 2025, and reduced above $505,000 of income. Those are the figures in the tax code and on the 2026 Form W-4 worksheet; the short summary in Form 1040-ES repeats the 2025 figures ($40,000 and $500,000), which only matters near the cap. Itemizers can now deduct charitable gifts only above 0.5% of AGI. And people who take the standard deduction can deduct up to $1,000 of cash gifts to charity ($2,000 joint) on top of it.
The tips, overtime, senior and car-loan-interest deductions are allowed whether you itemize or not, so they don't affect this choice. Very high earners in the 37% bracket see itemized deductions trimmed by about 5.4%; that cut isn't modelled here.
Who usually itemizes
Mostly homeowners with a sizable mortgage in high-tax states, and generous givers. With the higher standard deduction, most households don't: a married couple with $150,000 of AGI, $12,000 of mortgage interest, $14,000 of state and property taxes and $4,000 of gifts could itemize $29,250.00, but the $32,200 standard deduction plus $2,000 for gifts is $4,950.00 larger, worth $1,089.00 of tax.
Close to the line? "Bunching" helps: give two years of donations in one year (or through a donor-advised fund) and pay a property-tax installment early, itemize that year, and take the standard deduction the next.
Gather the numbers
Mortgage interest is on Form 1098; property tax is on your tax bill or mortgage escrow statement; state income tax withheld is on your W-2 (box 17), plus any state estimated payments. Keep receipts for gifts. Track the recurring ones (property tax, quarterly state payments) as bills so the totals are ready in January; the tax refund estimator then uses the larger deduction for your full 2026 estimate.
Buying a home? The how much house can I afford calculator shows the payment, and mortgage interest is often what tips a household into itemizing.
Sources
- IRS IR-2025-103: Tax inflation adjustments for tax year 2026 (brackets, standard deduction)
- IRS Rev. Proc. 2025-32: 2026 tax rate tables, standard deduction, child tax credit, EITC and QBI thresholds (PDF)
- IRS Form W-4 (2026) with the Step 4(b) deductions worksheet (PDF)
- IRS Form 1040-ES (2026): estimated tax, due dates, safe harbors and what's new for 2026 (PDF)
- 26 U.S.C. §164(b)(6)–(7): state and local tax limit ($40,400 for 2026) (Cornell LII)
- 26 U.S.C. §151(d)(5)(C): $6,000 deduction for seniors, 6% phase-out (Cornell LII)
Frequently asked questions
What is the standard deduction for 2026?
$16,100 for single filers and married filing separately, $32,200 for married filing jointly and qualifying surviving spouses, and $24,150 for heads of household. Add $2,050 per box (65 or older, blind) if unmarried, or $1,650 if married.
Should I itemize or take the standard deduction?
Itemize only if your allowed itemized deductions beat the standard deduction plus the up-to-$1,000 ($2,000 joint) charity deduction non-itemizers get from 2026. In the example, $22,400.00 itemized beats $17,100 and saves $1,166.00.
What is the SALT deduction limit for 2026?
$40,400 ($20,200 married filing separately), reduced by 30% of income above $505,000 but never below $10,000. That is the tax code's 2026 figure and the one on the 2026 Form W-4 worksheet.
Can I deduct charity without itemizing in 2026?
Yes. From 2026, up to $1,000 of cash gifts to qualifying charities ($2,000 married filing jointly) can be deducted on top of the standard deduction.
What is the extra standard deduction for seniors in 2026?
$2,050 for an unmarried person 65 or older (or blind), $1,650 per qualifying spouse if married. Separately, the new senior deduction of up to $6,000 per person 65+ applies whether or not you itemize.