The 2026 federal standard deduction is $16,100 for single filers, set by IRS Revenue Procedure 2025-32. Married couples filing jointly get $32,200, heads of household $24,150, and married filing separately $16,100. Taxpayers who are 65 or older or blind add $2,050 (single or HOH) or $1,650 (married) per qualifying condition, and seniors get a separate $6,000 OBBBA deduction through 2028.
Key takeaways:
2026 Standard Deduction Amounts:
| Filing Status | Standard Deduction |
|---|---|
| Single | $16,100 |
| Married Filing Jointly | $32,200 |
| Head of Household | $24,150 |
| Married Filing Separately | $16,100 |
Legal basis: IRC §63 (standard deduction defined), IRS Revenue Procedure 2025-32 (2026 inflation adjustments)
The standard deduction is a fixed dollar amount that reduces your adjusted gross income (AGI) to arrive at taxable income. It exists so that taxpayers don't have to track and document every personal expense that might qualify as an itemized deduction.
Here is where it fits in the tax calculation:
| Step | Calculation |
|---|---|
| 1 | Gross income |
| 2 | Minus above-the-line adjustments (1/2 SE tax, SEP IRA, HSA, etc.) = AGI |
| 3 | Minus standard deduction OR itemized deductions |
| 4 | Minus QBI deduction (Section 199A) |
| 5 | = Taxable income, to which tax rates apply |
For most taxpayers, the standard deduction produces a better result than itemizing. According to IRS data, roughly 90% of tax returns use the standard deduction.
The One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025, boosted the standard deduction on top of the annual inflation adjustment. Here are the final 2026 numbers, published by the IRS in Revenue Procedure 2025-32:
Single filers: $16,100. Up from $15,750 in 2025 (as raised by the OBBBA). This means the first $16,100 of your adjusted gross income is not subject to federal income tax.
Married Filing Jointly: $32,200. Up from $31,500 in 2025. This applies when both spouses file a joint return.
Head of Household: $24,150. Up from $23,625 in 2025. You qualify for this status if you're unmarried and pay more than half the cost of maintaining a home for a qualifying person.
Married Filing Separately: $16,100. Same as single. But there's an important restriction: if your spouse itemizes deductions, you must also itemize. You cannot take the standard deduction.
If you are 65 or older, blind, or both, you get an additional standard deduction on top of the base amount. Each qualifying condition adds to the total:
Single or Head of Household — $2,050 per qualifying condition:
| Situation | Total Standard Deduction |
|---|---|
| Single, age 65+ | $16,100 + $2,050 = $18,150 |
| Single, blind | $16,100 + $2,050 = $18,150 |
| Single, age 65+ AND blind | $16,100 + $2,050 + $2,050 = $20,200 |
Married Filing Jointly — $1,650 per qualifying condition, per spouse:
| Situation | Total Standard Deduction |
|---|---|
| One spouse 65+ | $32,200 + $1,650 = $33,850 |
| Both spouses 65+ | $32,200 + $1,650 + $1,650 = $35,500 |
| One spouse 65+ and blind | $32,200 + $1,650 + $1,650 = $35,500 |
| Both spouses 65+ and blind | $32,200 + ($1,650 × 4) = $38,800 |
Legal citation: IRC §63(c)(3) defines the additional standard deduction amounts. You're considered 65 on the day before your 65th birthday, so if your birthday is January 1, 2027, you qualify for the 2026 additional deduction.
On top of the standard deduction and the additional amount for age, the One Big Beautiful Bill Act created a $6,000 deduction for individuals age 65 and older, effective for tax years 2025 through 2028. A married couple where both spouses qualify can claim $12,000. The deduction phases out at a 6% rate once modified adjusted gross income exceeds $75,000 (single) or $150,000 (married filing jointly), and it is available whether you take the standard deduction or itemize.
Worked example: A 67-year-old single freelancer with $60,000 MAGI in 2026 deducts $16,100 (standard) + $2,050 (age 65+) + $6,000 (senior deduction) = $24,150 before the QBI deduction even enters the picture.
Source: IRS: One, Big, Beautiful Bill Act tax deductions
Not everyone is eligible. IRC §63(c)(6) and related provisions restrict the standard deduction for certain taxpayers:
If your spouse files a separate return and itemizes deductions, you must also itemize. You cannot take the standard deduction even if itemizing produces a worse result for you.
Why this matters for business owners: If you and your spouse file separately (common in community property states or when managing liability), coordinate your deduction strategy. One spouse itemizing forces the other to itemize as well.
If you are a nonresident alien (filing Form 1040-NR), you generally cannot take the standard deduction. There are narrow exceptions:
If you change tax status during the year (from nonresident to resident or vice versa), you file a dual-status return and typically cannot claim the standard deduction for the nonresident portion.
If your tax year is less than 12 months due to a change in accounting period, the standard deduction is not available.
Estates and trusts cannot claim the standard deduction. They must itemize or claim specific deductions allowed under Subchapter J of the tax code.
If someone claims you as a dependent, your standard deduction is limited to the greater of:
This primarily affects teenagers and college students with part-time income whose parents still claim them.
You should itemize if your total itemized deductions exceed the standard deduction. The common itemized deductions are:
| Itemized Deduction | 2026 Limit |
|---|---|
| State and local taxes (SALT) | $40,400 cap for 2026 ($40,000 in 2025; the OBBBA raised it from $10,000) |
| Mortgage interest | On up to $750,000 of mortgage debt |
| Charitable contributions | Up to 60% of AGI for cash gifts |
| Medical expenses | Exceeding 7.5% of AGI |
| Casualty and theft losses | Only from federally declared disasters |
The SALT cap change: The OBBBA raised the SALT deduction cap from $10,000 to $40,000 for 2025, and the cap rises 1% per year through 2029 ($40,400 for 2026) before reverting to $10,000 in 2030. This could push more taxpayers into itemizing, especially those in high-tax states like California, New York, and New Jersey.
Itemize if:
Take the standard deduction if:
| Potential itemized deduction | Amount |
|---|---|
| State/local taxes paid | $0 (Texas has no income tax) |
| Mortgage interest | $5,400 |
| Charitable donations | $1,200 |
| Medical expenses above 7.5% of AGI | $0 |
| Total itemized | $6,600 |
| Standard deduction | $16,100 |
Result: The standard deduction is $9,500 larger.
| Potential itemized deduction | Amount |
|---|---|
| State income tax | $18,000 |
| Property tax | $12,000 |
| SALT total ($30,000, under the $40,400 cap) | $30,000 |
| Mortgage interest | $14,000 |
| Charitable donations | $3,500 |
| Total itemized | $47,500 |
| Standard deduction | $32,200 |
Result: Itemizing gives $15,300 more in deductions.
This is where most self-employed people get confused, so here is the rule stated plainly: business deductions and the standard deduction are two different steps, and you get both.
Your business deductions go on Schedule C (Profit or Loss From Business). They reduce your net profit, not your taxable income directly. The standard deduction reduces your adjusted gross income to arrive at taxable income.
| Line | Amount |
|---|---|
| Gross business revenue | $120,000 |
| Less Schedule C deductions (home office, mileage, supplies, software, insurance) | -$30,000 |
| Net business profit | $90,000 |
| Less above-the-line deduction (1/2 of SE tax) | -$6,358 |
| Adjusted gross income | $83,642 |
| Less standard deduction | -$16,100 |
| Less QBI deduction (20% of QBI) | -$18,000 |
| Taxable income | $49,542 |
You get both. Every single Schedule C deduction AND the full standard deduction. They don't cancel each other out. They stack.
These deductions reduce your net profit on Schedule C. You claim them whether you take the standard deduction or itemize:
For a complete list: Tax Write-Offs for LLC Owners
These adjustments reduce your AGI and are available whether you take the standard deduction or itemize:
The Qualified Business Income (QBI) deduction under Section 199A gives pass-through business owners an additional deduction of up to 20% of their qualified business income. Here's how it works alongside the standard deduction:
Important: The standard deduction and QBI deduction are both subtracted from AGI, but they are independent calculations. Taking the standard deduction does not reduce your QBI amount. Your QBI is based on your net business profit, not your AGI.
| Line | Amount |
|---|---|
| Gross freelance revenue | $100,000 |
| Less Schedule C deductions | -$15,000 |
| Net profit (Schedule C) | $85,000 |
| Self-employment tax ($85,000 × 92.35% × 15.3%) | $12,010 |
| Less deductible half of SE tax | -$6,005 |
| Adjusted gross income | $78,995 |
| Less standard deduction | -$16,100 |
| Less QBI deduction (20% × $85,000) | -$17,000 |
| Taxable income | $45,895 |
This freelancer gets $15,000 in business deductions, a $16,100 standard deduction, AND a $17,000 QBI deduction. Total deductions from gross revenue to taxable income: $54,105.
A precision note: The examples here use the simplified 20%-of-net-profit figure. On the actual return, Form 8995 reduces QBI by the deductible half of SE tax (and any SE health insurance or retirement deductions) before applying the 20%, so the final deduction comes out slightly lower.
For the full QBI deduction guide: QBI Deduction 2026: Maximize Your 20% Pass-Through Tax Deduction
The standard deduction directly reduces your taxable income, which means it saves you money at your marginal tax rate. The higher your bracket, the more each dollar of standard deduction is worth. Find your bracket in our 2026 Tax Brackets Guide.
| Marginal Tax Rate | Tax Saved by Standard Deduction |
|---|---|
| 10% | $1,610 |
| 12% | $1,932 |
| 22% | $3,542 |
| 24% | $3,864 |
| 32% | $5,152 |
| 35% | $5,635 |
| 37% | $5,957 |
Note: Your actual savings may span multiple brackets. If your income crosses a bracket boundary, part of the deduction saves at the lower rate and part saves at the higher rate.
The standard deduction reduces federal income tax only. It does not reduce:
This distinction is critical for self-employed people: your SE tax bill is based on your net business profit, and the standard deduction has zero effect on it.
Problem: A freelance graphic designer skips claiming her home office, mileage, and software expenses because she "already takes the standard deduction."
Impact: She leaves $8,000+ in Schedule C deductions unclaimed, overpaying both income tax and self-employment tax.
Solution: Business deductions and the standard deduction are completely separate. Claim every legitimate Schedule C deduction AND the standard deduction. They stack.
Problem: A married couple assumes the standard deduction is always better without adding up their potential itemized deductions.
Impact: With the SALT cap now at $40,400 for 2026 (versus $10,000 before the OBBBA), couples in high-tax states may have itemized deductions well above the $32,200 standard deduction.
Solution: Run the numbers both ways every year. Major life changes — buying a home, moving to a high-tax state, large charitable donations — can tip the balance toward itemizing.
Problem: One spouse itemizes (they have a mortgage and high state taxes), but the other spouse takes the standard deduction on their separate return.
Impact: This is not allowed. If one spouse itemizes, both must itemize. The second spouse gets forced into itemizing even if their itemized deductions are small.
Solution: Before choosing MFS, both spouses should calculate their total tax liability under MFJ vs. MFS to determine which status produces the lowest combined tax.
Problem: A self-employed consultant assumes his state uses the same standard deduction as the federal return.
Impact: Many states have different (usually lower) standard deduction amounts. Some states don't offer a standard deduction at all (like California, which calls it a different name and sets different amounts).
Solution: Check your state's standard deduction separately. Your state return is a completely different calculation from your federal return.
Problem: A 67-year-old freelance consultant doesn't realize he qualifies for the additional standard deduction.
Impact: He misses an extra $2,050 deduction, costing $451 in tax at the 22% bracket, plus up to $6,000 more from the OBBBA senior deduction if his MAGI is under the phase-out threshold.
Solution: If you're 65 or older or legally blind, claim the additional standard deduction. If married filing jointly and both spouses are 65+, that's an extra $3,300, before the senior deduction.
The standard deduction is the easy part; the hard part is keeping your Schedule C complete all year so the deductions that stack on top of it don't leak away. Jupid is an AI accountant that connects to your bank accounts and categorizes business transactions with 95.9% accuracy, so home office, software, and mileage-adjacent expenses land in the right Schedule C category automatically. Ask "standard or itemized this year?" in WhatsApp or iMessage and Jupid answers from your actual tracked numbers, factoring in the SE tax and QBI layers too. Try Jupid
| Item | 2026 Amount |
|---|---|
| Standard deduction (single) | $16,100 |
| Standard deduction (MFJ) | $32,200 |
| Standard deduction (HOH) | $24,150 |
| Standard deduction (MFS) | $16,100 |
| Additional deduction (single, 65+/blind) | $2,050 |
| Additional deduction (married, 65+/blind) | $1,650 |
| OBBBA senior deduction (65+, through 2028) | $6,000 |
| SALT cap | $40,400 |
| QBI deduction | 20% of qualified business income |
The standard deduction is one of the simplest provisions in the tax code, but its interaction with business deductions, above-the-line adjustments, and the QBI deduction creates a layered system that works strongly in favor of self-employed filers, if you understand how the pieces fit together.
Three things to remember:
Business deductions come first. Your Schedule C deductions reduce net profit before anything else. They lower both your income tax and self-employment tax.
The standard deduction stacks on top. After calculating AGI, the standard deduction provides an additional $16,100 (single) or $32,200 (MFJ) reduction in taxable income. It does not replace or conflict with business deductions.
Run the numbers both ways. With the SALT cap at $40,400 for 2026, more taxpayers in high-tax states may benefit from itemizing. But for most self-employed people, especially those in no-income-tax states, the standard deduction will still win. Our Standard vs. Itemized Calculator does the comparison in a minute.
Understanding these layers is the difference between paying only what you owe and overpaying because you left deductions unclaimed.
Disclaimer
This article provides general information about the standard deduction and should not be considered tax advice. Standard deduction amounts, itemized deduction limits, and tax rules are subject to annual changes and legislative updates. Your actual tax liability depends on your filing status, income sources, deductions, and individual circumstances. For advice specific to your situation, consult with a qualified tax professional.
Last Updated: July 7, 2026
CEO & Co-Founder
Fintech CEO with 10+ years building accounting and financial technology products. Previously co-founded and scaled an AI-powered accounting platform to $30M revenue and 100K+ business users, achieving 30,000 customers per accountant through automation — recognized by CNBC as a top fintech company. Holds a Master's in Management Information Systems. At Jupid, he leads the development of AI-native bookkeeping, tax, and compliance tools designed for freelancers and small business owners.
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