When filing your taxes, one of the first decisions you’ll make is whether to take the standard deduction or itemize your deductions. For most taxpayers, the standard deduction is the simpler and more beneficial option—but what exactly is it, and how much is it worth in 2025?
Here’s a breakdown of what the standard deduction means, how it works, and what the 2025 numbers look like.
What Is the Standard Deduction?
The standard deduction is a fixed dollar amount that reduces the amount of income you’re taxed on. Instead of listing out all of your deductible expenses, you can simply subtract the standard deduction from your taxable income—and pay taxes on the rest.
This deduction is available to most taxpayers, and it adjusts each year based on inflation.
2025 Standard Deduction Amounts
For the 2025 tax year (filed in 2026), the IRS has increased the standard deduction slightly:
- Single filers: $15,000
- Married filing jointly: $30,000
- Head of household: $22,500
Additional Deductions for Seniors
If you’re over the age of 65, you’re eligible for an extra deduction on top of the standard amount:
- Unmarried seniors: $2,000 additional deduction
- Married seniors (filing jointly): $1,600 additional deduction per qualifying spouse
These additional amounts help reduce taxable income for seniors, especially those on a fixed retirement income.
What About Personal Exemptions?
You may remember that in the past, you could claim a personal exemption for yourself and your dependents. However, the Tax Cuts and Jobs Act of 2017 eliminated personal exemptions through at least 2025. That means the personal exemption remains at $0 for this year.
Why It Matters
Choosing the standard deduction can greatly simplify the tax filing process and often results in a lower tax bill for those without significant itemized expenses like mortgage interest, high medical bills, or large charitable donations.
If your itemized deductions don’t add up to more than the standard deduction, it’s usually better to take the standard amount. It lowers your taxable income automatically—no extra math or paperwork required.
Understanding the standard deduction—and knowing which filing status applies to you—can help you estimate your tax liability and make smart decisions throughout the year.
