How Much Will the 2025 Standard Tax Deduction Actually Save You?

The standard tax deduction is a fixed amount that taxpayers can subtract from their income to lower their taxable income. The amount you save will depend on your income and tax bracket. That being said, although the amounts have gone up for 2025, the differences from last year aren’t huge.

Single taxpayers and married individuals filing separately in the 2025 tax year will be eligible to claim $400 more in their standard tax deduction compared to 2024, as the standard deduction for this category of taxpayer has risen to $15,000 from $14,600.

For married couples filing jointly, the standard deduction for 2025 is $30,000, allowing them to claim $800 more as compared to 2024. And for heads of households, the 2025 standard deduction is $22,500, an increase of $600 as compared to the 2024 tax year.

Key Takeaways

• The standard tax deduction is a flat amount of money that taxpayers are eligible to subtract from their annual gross income, lowering their amount of taxable income for the year. 
• The 2025 standard tax deduction will allow single taxpayers to deduct $15,000 ($400 more compared to 2024); heads of households can deduct $22,500 (an increase of $600 compared to 2024).
• If you’re not eligible for the standard deduction, or you expect that your allowable deductions might exceed the standard deduction amount, you can use the itemized deduction method using Schedule A on Form 1040.

What Is a Standard Tax Deduction?

When you file your taxes, you’re eligible to subtract a certain amount of money from your gross income each year. This lowers the amount of money you’re obligated to pay taxes on. The Internal Revenue Service (IRS) releases these numbers as part of its annual inflation adjustments each year; the 2025 figures were announced in October 2024.

Here are the standard deduction amounts for 2024 and 2025 by filing status:

Important

If you’re age 65 or older at the end of the tax year, you are allowed an additional standard deduction amount of $1,600 for 2025. Blind taxpayers are also eligible for this deduction amount.

How to Calculate Your Taxable Income Using the Standard Deduction

To calculate your taxable income manually, subtract the standard deduction from your total income for the year. This will give you your taxable income. From there, you can apply the tax rate that corresponds to your income bracket. If you’re using tax software, it will do these calculations for you automatically.

Standard Tax Deduction vs. Itemized Deduction Method

The standard deduction is a fixed amount, but the itemized deduction method allows you to deduct specific expenses if they exceed the standard amount. You might also need to use the itemized method if you’re not eligible for the standard method. Itemized deductions can include amounts paid during the taxable year for:

• State and local income
• Sales taxes
• Real property taxes
• Personal property taxes
• Mortgage interest
• Disaster losses
• Gifts to charities
• Medical and dental expenses 

Note that certain dollar limitations and other limitations apply to the above categories, and that you will need to submit receipts to back up each item included in case you are audited.

The Bottom Line

The IRS adjusts the standard deduction amount each year for inflation, and although it has increased for the 2025 tax year, the amounts aren’t likely to make a huge difference as compared to 2024. Depending on your situation, it may be worth taking the time to track and save receipts for anything that might be claimed under the itemized method if you anticipate that the amount might be higher than the standard deduction amount.