Standard deduction

The standard deduction is a fixed dollar amount you subtract from your income before working out federal income tax, if you do not itemise deductions. You take whichever is bigger.

According to the IRS, Revenue Procedure 2025-32 (released 9 October 2025) sets the standard deduction for tax year 2026 at:

• $16,100 for single filers and married filing separately;
• $32,200 for married couples filing jointly;
• $24,150 for heads of household.

These are the amounts for returns filed in 2027 for the 2026 tax year.

Example: a single filer with $60,000 of wages and no pre-tax deductions has $43,900 of taxable income ($60,000 minus $16,100). Using the IRS 2026 brackets, federal income tax is $5,020: 10% on the first $12,400 ($1,240) and 12% on the next $31,500 ($3,780).

Your employer uses the standard deduction, together with your Form W-4, to set withholding. See the effect on each paycheck in the US paycheck calculator.