2026 Standard Deduction Increase: Tax-Filer Impact

The 2026 Numbers — All Filing Statuses Compared to 2025

Per Rev. Proc. 2025-32 §3.21, the 2026 standard deductions are:

The dollar increases are driven by inflation adjustment under IRC §1(f), not by new legislation. The OBBB did not directly change the standard deduction amounts — but it did significantly change the SALT cap, which affects whether itemizing beats the standard deduction for a much larger group of filers.

Why the Standard Deduction Rose — Annual Inflation Adjustment per IRC §1(f)

Congress built annual inflation indexing into the tax code under IRC §1(f) as part of TCJA (P.L. 115-97, 2017). Each year, the standard deduction is adjusted upward based on the change in the Chained Consumer Price Index for All Urban Consumers (C-CPI-U) from the August year-over-year measurement period.

For 2026, the CPI-U adjustment produced roughly a 2–4% increase over 2025 values. This is a mechanical process: the IRS doesn't have discretion here once the Bureau of Labor Statistics publishes the relevant inflation index values. The practical effect: your standard deduction grows a little each year even if Congress does nothing, partially offsetting bracket creep.

The "Additional" Deduction for Age 65+ or Blind

If you are 65 or older (as of December 31 of the tax year) or legally blind, you qualify for an additional standard deduction on top of the base amount. This is per IRC §63(f), separate from the OBBB senior deduction.

2026 additional standard deduction amounts:

These amounts apply per qualifying condition per person. A single filer who is both 65+ and blind can claim $4,000 additional ($2,000 × 2 conditions). A married couple where both spouses are 65+ can claim $3,200 additional ($1,600 × 2 people).

• Combined single filer 65+, 2026: $16,100 (base) + $2,000 (age) = $18,100 total standard deduction.
• Combined MFJ, both spouses 65+: $32,200 + $3,200 = $35,400 total standard deduction.

OBBB senior deduction stacks further: The OBBB adds a separate $6,000 deduction for each taxpayer age 65+, subject to its own phase-out. A single filer 65+ below the OBBB phase-out could have $18,100 + $6,000 = $24,100 in total deductions from these three sources alone before any other itemized deductions.

Who Cannot Take the Standard Deduction

A few specific situations prevent taking the standard deduction. You generally cannot claim it if:

• You are a married individual filing separately whose spouse itemizes deductions — per IRC §63(c)(6), if one spouse itemizes on a separate return, the other must also itemize
• You were a nonresident alien or dual-status alien during the year
• You are filing a return for a period of less than 12 months due to a change in accounting period

When to Itemize Instead — Break-Even Analysis

You should itemize if your itemizable deductions exceed your standard deduction. Under current law, the main itemizable deductions are SALT (capped at $40,400 MFJ / $20,200 single under OBBB §70120), mortgage interest on acquisition debt up to $750,000 (IRC §163(h)), charitable contributions (IRC §170), medical expenses above 7.5% of AGI (IRC §213), and certain casualty losses from federally declared disasters (post-TCJA).

Break-even table — what you need in itemized deductions to beat the standard deduction:

Mortgage interest in year 1 approximated at $400k × 6.5% ≈ $26,000 and $600k × 6.5% ≈ $39,000. SALT estimates based on typical state income tax + property tax for those profiles.

Three Worked Examples

Example 1: Single, $85,000 W-2, Texas (no state income tax)

• Standard deduction: $16,100; Taxable income: $68,900
• SALT: ~$3,000 (property tax only); mortgage interest: $0 (rents)
• Itemized total: $3,000 — far below $16,100
• Decision: Standard deduction wins easily. Federal income tax ≈ $10,073. Effective rate: 11.8%.

Example 2: MFJ, $200,000 W-2, California, mortgage

• Standard deduction: $32,200
• CA state income tax: ~$14,000; property tax on $800k home: ~$9,000; combined SALT: ~$23,000 (under $40,400 cap)
• Mortgage interest on $600k loan at 6.5%, year 3: ~$37,500; charitable: $5,000
• Total itemized: $65,500. Decision: Itemize wins by $33,300.

Example 3: MFJ senior couple, both 65+, $95,000 total income

• Standard deduction: $32,200 + $3,200 (IRC §63(f) both 65+) = $35,400
• OBBB senior deduction: $12,000 (2 × $6,000, below phase-out threshold)
• Total deductions without itemizing: $47,400; mortgage paid off; SALT: $6,000; charitable: $4,000
• Itemized: $10,000 — far below $35,400 standard
• Decision: Standard deduction wins by a wide margin.

The OBBB Senior Deduction Interaction

The OBBB senior deduction of $6,000 per qualifying person is separate from IRC §63(f) and separate from the base standard deduction. It is an above-the-line deduction available to 65+ taxpayers regardless of whether they itemize or take the standard deduction.

The phase-out begins at 6% of MAGI above $75,000 single / $150,000 MFJ. For a single filer at $90,000 MAGI: excess = $15,000; phase-out = 6% × $15,000 = $900; net senior deduction = $6,000 − $900 = $5,100.

This provision sunsets after 2028 (P.L. 119-21 sunset language). Also see the 2026 tax bracket calculator and SALT deduction calculator for related tools.

Frequently Asked Questions

See What Your Tax Bill Is with the 2026 Federal Income Tax Calculator

The examples in this article use simplified income figures. Your AGI, filing status, additional deductions, and credits will produce a different result. The 2026 federal income tax calculator computes your actual estimated tax bill with all 2026 parameters — including the new standard deduction amounts, OBBB provisions, and updated brackets per Rev. Proc. 2025-32.