| Feature | Standard Deduction | Itemized Deduction |
|---|---|---|
| Amount | Flat amount | Total reflecting individual eligible expenses |
| Documentation | None | Must provide a record of expenses such as mortgage interest and property taxes (Schedule A) |
| Homeowner Expenses Included | None | Mortgage interest, mortgage insurance premium (if applicable), points, and property/state and local taxes |
| 2026 Amount (Single) | $16,100 | Varies based on eligible expenses |
| 2026 Amount (Married Filing Jointly) | $32,200 | Varies based on eligible expenses |
Homeownership and taxes: Before vs. after
If you don’t own a home and want to simplify your tax return, you may choose to take a standard deduction. This is a specific dollar amount that reduces your taxable income. The IRS typically adjusts it each year for inflation, and it varies based on your filing status, age, disability status, and dependents.
You can’t take the standard deduction if you choose to itemize, but itemizing may save more if you own a home. You can use Schedule A (Form 1040 or 1040-SR) to determine the amount of your deduction if you itemize and take the deductions available to you as a homeowner. Although itemizing is more complicated than taking the standard deduction, it may be worth it if it reduces your tax burden.
If you’re single, you can claim a standard deduction of up to $16,100. If you’re a married filer filing jointly, it’s $32,200. If your total itemized expenses exceed those amounts, you’ll save money by itemizing your tax return.
Which documents do you need to gather when filing?
As a homeowner, you’ll need certain documents when filing your tax return. You may be able to deduct mortgage interest, mortgage insurance, and property taxes, so gather documentation showing you have paid these expenses.
If you’ve paid mortgage interest, your lender is required to submit Form 1098 to the IRS and send you a statement that reflects your payment. That statement proves you paid mortgage interest on your home. Note, however, that the lender is only required to notify the IRS and submit a statement if the interest paid is $600 or more.
What are points, and can you claim them?
Discount points lower your mortgage rate by a certain percentage. When you buy discount points, you’re paying interest up front in exchange for a lower interest rate on your mortgage. Because discount points are prepaid interest, they’re deductible as mortgage interest on a main home or second property that’s not being rented out.
Property taxes and SALT cap
SALT stands for state and local taxes. You may be able to deduct certain state and local taxes when filing itemized deductions as a homeowner. These include:
- State and local income taxes
- State and local general sales taxes
- State and local real property taxes
- State and local personal property taxes
For 2025, overall SALT deductions are limited to $40,000, or $20,000 if married filing separately. The overall limit on the deduction for state and local income, sales, and property taxes has increased. For 2026, the limit is $40,400($20,200 if married filing separately) and the overall limit is reduced if your modified adjusted gross income is more than $505,000($252,500 if married filing separately) but will not be reduced below $10,000($5,000 if married filing separately).
