What Is the Standard Deduction?
Quick Answer
The standard deduction is a fixed dollar amount the IRS lets you subtract from your gross income before calculating your taxes. For 2025, it is $15,000 for single filers and $30,000 for married couples filing jointly. Nearly 90% of taxpayers use the standard deduction instead of itemizing. It is the single largest deduction most people receive, and it directly reduces your taxable income.
2025 Standard Deduction Amounts
| Filing Status | Standard Deduction |
|---|---|
| Single | $15,000 |
| Married Filing Jointly | $30,000 |
| Married Filing Separately | $15,000 |
| Head of Household | $22,500 |
If you are 65 or older, you get an additional $1,950 (single/head of household) or $1,550 per spouse (married filing jointly).
How the Standard Deduction Works
The standard deduction sits between your adjusted gross income (AGI) and your taxable income. Here is the flow:
- Start with your gross income
- Subtract "above-the-line" adjustments to get AGI (like HSA contributions or student loan interest)
- Subtract the standard deduction (or itemized deductions) to get taxable income
- Apply tax brackets to your taxable income
The deduction does not reduce your tax dollar-for-dollar. Instead, it removes income from taxation entirely, saving you money at your marginal tax rate.
Real Example With Actual Numbers
Tyler is single, earns $70,000, and lives in Texas. He does not itemize.
- Gross income: $70,000
- Standard deduction: -$15,000
- Taxable income: $55,000
Without the standard deduction, Tyler's federal tax on $70,000 would be about $11,114. With the deduction reducing his taxable income to $55,000, his federal tax drops to about $7,814. The standard deduction saves Tyler approximately $3,300 in federal taxes.
That savings comes because the $15,000 deduction eliminates income that would have been taxed at the 22% marginal rate ($15,000 x 22% = $3,300). Try the SalaryHog calculator to see how the standard deduction affects your paycheck.
Standard Deduction vs Itemizing
You can choose between the standard deduction and itemizing. You should itemize only if your total itemized deductions exceed the standard amount. Common itemized deductions include:
- State and local taxes (SALT): Capped at $10,000
- Mortgage interest: On loans up to $750,000
- Charitable contributions: Cash and property donations
- Medical expenses: Only the amount exceeding 7.5% of AGI
For most people, especially renters or those in low-tax states, the standard deduction wins easily. Homeowners in high-tax states like California or New York are more likely to benefit from itemizing.
How It Affects Your Paycheck
Your employer accounts for the standard deduction when calculating withholding. The W-4 form you filled out tells your employer to assume you will take the standard deduction, which reduces the amount withheld from each paycheck. If you have additional deductions, you can adjust your W-4 to have less withheld.
Use the SalaryHog calculator to see your take-home pay after the standard deduction is applied, or try the married calculator to see how the doubled deduction for joint filers affects couples.