2026 Standard Deduction: How OBBBA Changed the Numbers

What Is the Standard Deduction in 2026?

The standard deduction is a flat dollar amount that reduces your taxable income. Most taxpayers claim it instead of itemizing individual deductions (mortgage interest, state taxes, charitable donations, etc.). For tax year 2026, the standard deduction amounts are:

• Single: $16,100
• Married Filing Jointly (MFJ): $32,200
• Married Filing Separately (MFS): $16,100
• Head of Household (HOH): $24,150

These numbers reflect an inflation adjustment from the 2025 amounts ($15,750 single / $31,500 MFJ), which were themselves increased by the OBBBA. The standard deduction is subtracted from your adjusted gross income (AGI) before your tax is calculated — it directly reduces the income that gets taxed.

How OBBBA Changed the Standard Deduction

The Tax Cuts and Jobs Act (TCJA) of 2017 nearly doubled the standard deduction. But those provisions were set to expire after 2025. Without legislative action, the 2026 standard deduction would have reverted to pre-TCJA levels — roughly $8,300 for single filers and $16,600 for married filing jointly (adjusted for inflation).

The OBBBA extended and enhanced these TCJA provisions, making the higher standard deduction permanent. Here's the comparison:

For a single filer in the 22% bracket, this $7,800 difference translates to roughly $1,716 in annual tax savings compared to what taxes would have been without OBBBA. For a married couple in the same bracket, it's about $3,432.

The OBBBA also increased the standard deduction for 2025 (from what it would have been under the original TCJA schedule) to $15,750 single / $31,500 MFJ. The 2026 numbers reflect annual inflation adjustments on top of the OBBBA-enhanced base.

Standard Deduction + Schedule 1-A: They Stack

One of the most powerful — and most misunderstood — aspects of the OBBBA is that the new Schedule 1-A deductions are above-the-line deductions. This means they reduce your AGI before the standard deduction is applied. You get both. They stack.

Schedule 1-A deductions introduced by the OBBBA include:

• Qualified Tips Deduction: Up to $25,000 in tip income (for qualifying occupations under $160,000 income)
• Overtime Pay Deduction: Federal income tax exemption on overtime hours
• Auto Loan Interest Deduction: Interest on car loans for domestically manufactured vehicles
• Senior Bonus Deduction: Additional $4,000 deduction for taxpayers age 65+

These are not part of the standard deduction — they are taken in addition to it. A tipped worker claims the standard deduction and the tip deduction. Here's what that looks like in practice:

Example: Restaurant Server (Single, Age 28)

Without the OBBBA tip deduction, this server would owe roughly $2,970 in federal income tax on $42,000 of income after the standard deduction. With the stacking, they owe only $390 — a savings of $2,580.

Example: Bartender with Overtime (Single, Age 35)

This bartender earns $59,250 total but only pays federal income tax on $13,900 — an effective federal income tax rate of about 2.4%. The stacking of tips deduction + overtime deduction + standard deduction saves them roughly $4,800 compared to filing without OBBBA provisions.

Use our Tips Tax Calculator to model your own scenario with all deductions stacking.

Standard Deduction by Filing Status (2026)

The following table shows the 2026 standard deduction amounts for each filing status, including the additional deduction for taxpayers age 65 or older and/or blind.

The additional amount for age 65+ or blind applies per qualifying condition. A single filer who is both 65+ and blind receives an additional $4,000 ($2,000 x 2). For married couples, each spouse who qualifies adds $1,600 per condition.

Note for seniors: The OBBBA's new $4,000 Senior Bonus Deduction on Schedule 1-A is separate from the additional standard deduction for age 65+. A single filer age 65+ gets the base $16,100 standard deduction + $2,000 additional age deduction + $4,000 Senior Bonus Deduction = $22,100 in total deductions before any tip or overtime deductions.

When to Itemize Instead

With the standard deduction at $16,100 (single) or $32,200 (MFJ), most taxpayers are better off taking the standard deduction. But itemizing on Schedule A still makes sense if your total itemized deductions exceed the standard deduction. Common scenarios:

• High state/local taxes (SALT): The SALT deduction cap is $40,000 under the OBBBA (up from the TCJA's $10,000). If you live in a high-tax state, this higher cap may push your itemized total above the standard deduction.
• Large mortgage interest: Taxpayers with significant mortgage interest on homes up to $750,000 in loan value may benefit from itemizing.
• Significant charitable donations: Large donations to qualified charities can add up past the standard deduction threshold.
• Major medical expenses: Medical expenses exceeding 7.5% of your AGI are deductible when itemizing.

Important: Schedule 1-A deductions (tips, overtime, car loan interest, senior bonus) are above-the-line deductions. You claim them regardless of whether you take the standard deduction or itemize. They are not part of the itemize-vs-standard decision — you always get them if you qualify.