Standard Deduction

Tax

A fixed amount that taxpayers can subtract from their gross income without needing to itemize individual expenses, simplifying the tax filing process.

## Standard Deduction

The standard deduction is a flat-amount deduction available to all taxpayers as an alternative to itemizing individual deductions. It simplifies filing and benefits taxpayers who don't have significant deductible expenses.

### US Standard Deduction (2025)

| Filing Status | Amount |
|--------------|--------|
| Single | $15,200 |
| Married Filing Jointly | $30,400 |
| Head of Household | $22,750 |
| Additional (age 65+ or blind) | $1,550–$1,950 |

### When to Itemize Instead

Taxpayers should itemize when their total deductible expenses exceed the standard deduction. Common itemizable expenses: mortgage interest, state/local taxes (up to $10,000), charitable donations, and medical expenses exceeding 7.5% of AGI.

### Global Equivalents

- **UK**: Personal Allowance (£12,570).
- **Germany**: Grundfreibetrag (€11,784) + Werbungskostenpauschale (€1,230).
- **Canada**: Basic Personal Amount (C$16,129).