Itemize or Take the Standard Deduction? (Go / No-Go)
Most filers are better off with the standard deduction. Itemizing only pays when your itemized total clears it. Run these gates before you decide — and remember the 2025 OBBBA changes affect several deduction rules.
1Threshold gate
Do your itemized deductions exceed your standard deduction?
State + local taxes (capped), mortgage interest, charitable, medical above the floor, and other qualifying deductions sum to MORE than the standard deduction.
Your itemized total is below the standard deduction — taking the standard puts more in your pocket.
2SALT cap gate
Does the state/local tax cap bind you?
Your SALT is high and, combined with other deductions, still clears the standard after the cap — itemizing wins.
SALT alone would exceed the cap; once capped, the rest rarely pushes you over the standard — take the standard.
3Homeownership gate
Do you have meaningful mortgage interest and property tax?
Large mortgage interest + property tax (under SALT cap) makes itemizing likely worthwhile.
Renting or a small mortgage — little to itemize; standard is simpler and larger.
4Local-income-tax gate (city filers)
Do you pay a city income tax (NYC, Philadelphia, DC)?
The local tax is usually deductible on your STATE return (subject to SALT cap) and can tip itemizing at the state level even if federal is standard.
You don't pay a local income tax, so this lever does not apply — decide on federal rules alone.
5OBBBA timing gate
Are you using current-year deduction rules?
You confirmed the 2026 figures (standard deduction, SALT cap, and OBBBA-changed itemized rules) before filing.
You are relying on pre-2025 assumptions — verify current-year rules; several TCJA items were made permanent and some itemized rules changed.
Shortcut
- Add up your real itemized deductions (use the Deduction Worksheet).
- If total > standard deduction → itemize (notably if you have a big mortgage or high SALT).
- If total ≤ standard → take the standard; it is larger and simpler.
- Check your STATE return separately — local income tax can flip the state-level answer.
Related: Standard vs Itemized comparison, City income tax guides, Federal income tax tool, and the open city local-tax dataset (JSON).