HOW THE STANDARD DEDUCTION MAY IMPACT YOU
WHAT IS THE STANDARD DEDUCTION?
A tax deduction is an expense you can subtract from your income before paying taxes on that income. For example, if you earn $100,000 per year and have a $10,000 tax deduction, you would only have to pay income taxes on $90,000. Taxpayers can either itemize individual tax deductions (such as qualified home mortgage interest and property taxes) or take a flat “standard deduction." In 2025, the standard deduction is $15,750 for single taxpayers and $31,500 for married taxpayers who file a joint tax return. This is up from the 2024 levels of $14,600 for single taxpayers and $29,200 for married taxpayers who file a joint tax return.
HOW DOES THE STANDARD DEDUCTION IMPACT HOMEOWNERS & BUYERS?
Generally, you would probably choose to itemize if all your itemized deductions added together are more than your standard deduction. However, if all your itemized deductions (including qualified home mortgage interest and property taxes) are less than your standard deduction, you may as well just take the standard deduction. There's probably no need to itemize in that case. Be sure to check with a CPA for more details about how this may impact your specific situation.
EXTRA $6,000 STANDARD DEDUCTION FOR TAXPAYERS AGE 65 AND OLDER.
A new tax bill signed into law in July 2025 (One Big Beautiful Bill Act) created an additional $6,000 standard deduction for taxpayers age 65 and older. This means the standard deduction for single taxpayers age 65 and older is now $23,750. The standard deduction for married taxpayers filing jointly is $46,700 if both taxpayers are 65+ or $39,100 if only one taxpayer is 65+.
PLEASE NOTE: THIS ARTICLE IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE LEGAL, TAX, OR FINANCIAL ADVICE. PLEASE CONSULT WITH A QUALIFIED TAX ADVISOR FOR SPECIFIC ADVICE ABOUT YOUR SITUATION. FOR MORE INFORMATION ON ANY OF THESE ITEMS, PLEASE REFERENCE IRS PUBLICATION 501.
$31,500 for married taxpayers filing a joint return.
$15,750 for single taxpayers.