Federal Tax

Itemized Deductions: Complete Guide 2026

Updated 2026-03-11

Data Notice: Figures, rates, and statistics cited in this article are based on the most recent available data at time of writing and may reflect projections or prior-year figures. Always verify current numbers with official sources before making financial, medical, or educational decisions.

Itemized Deductions: Complete Guide 2026

Tax information is for educational purposes only and does not constitute tax advice. Consult a licensed tax professional for your specific situation.

Itemized deductions allow taxpayers to reduce their taxable income by claiming specific qualifying expenses on Schedule A of the federal tax return, instead of taking the standard deduction. For 2026, itemizing is projected to benefit filers whose total qualifying expenses exceed the standard deduction of approximately ~$14,600 (single) or ~$29,200 (married filing jointly). The Tax Cuts and Jobs Act (TCJA) provisions that limited or eliminated several itemized deductions are scheduled to expire after 2025, which may significantly change the landscape for 2026 filers. Taxpayers should review the current rules carefully.

2026 Standard Deduction vs. Itemized Threshold

Filing StatusStandard DeductionItemize If Deductions Exceed
Single~$14,600~$14,600
Married Filing Jointly~$29,200~$29,200
Head of Household~$21,900~$21,900
Married Filing Separately~$14,600~$14,600

Categories of Itemized Deductions

Medical and Dental Expenses

You may deduct unreimbursed medical and dental expenses that exceed ~7.5% of your adjusted gross income. Qualifying expenses include:

  • Doctor, dentist, and hospital fees
  • Health insurance premiums (if not paid with pre-tax dollars)
  • Prescription medications
  • Long-term care insurance premiums (subject to age-based limits)
  • Transportation for medical care
  • Medically necessary home improvements

State and Local Taxes (SALT)

The SALT deduction allows you to deduct state and local taxes paid, including:

  • State and local income taxes OR state and local sales taxes (choose one)
  • Property taxes on real estate

The TCJA capped the total SALT deduction at $10,000 ($5,000 for married filing separately). Whether this cap continues, is modified, or expires for 2026 depends on legislative action. Taxpayers should verify the current status.

Mortgage Interest

You may deduct interest paid on mortgage debt used to buy, build, or substantially improve your primary residence and one additional residence. The TCJA limited this deduction to interest on the first $750,000 of mortgage debt ($375,000 for married filing separately). Interest on home equity loans is deductible only if the loan proceeds were used for home improvements.

Charitable Contributions

Deductible charitable contributions include:

  • Cash donations to qualifying organizations (up to ~60% of AGI for cash contributions)
  • Fair market value of donated property (up to ~30% of AGI for long-term capital gain property)
  • Mileage for charitable purposes (~$0.14 per mile)
  • Documented out-of-pocket expenses for volunteer work

Donations to individuals, political organizations, and candidates are not deductible.

Casualty and Theft Losses

Casualty and theft losses are deductible only if they result from a federally declared disaster. The loss must exceed ~$100 per event, and total losses must exceed ~10% of AGI.

Other Itemized Deductions

  • Gambling losses: Deductible up to the amount of gambling winnings reported as income
  • Certain unrecovered investment in pension: If you contributed after-tax dollars to an employer pension and pass away before recovering the full amount
  • Impairment-related work expenses: For disabled individuals who have work-related impairment expenses

Common Mistakes to Avoid

  1. Not comparing to the standard deduction. Many filers assume itemizing is better without actually totaling their expenses. The higher standard deduction under TCJA eliminated the benefit for many taxpayers.

  2. Forgetting the SALT cap. The ~$10,000 SALT deduction limit catches many filers in high-tax states. Track your total to avoid overdeducting.

  3. Lacking documentation for charitable gifts. Cash donations over ~$250 require a contemporaneous written acknowledgment from the charity. Noncash donations over ~$500 require Form 8283.

  4. Including non-deductible medical expenses. Cosmetic surgery, gym memberships, and nonprescription supplements generally are not deductible medical expenses.

  5. Missing the AGI threshold for medical expenses. Only the portion exceeding ~7.5% of AGI is deductible, which limits the benefit for higher-income filers.

  6. Deducting mortgage interest on excessive debt. Interest on mortgage debt above ~$750,000 is not deductible under current rules.

Key Takeaways

  • Itemize only if your total qualifying expenses exceed the standard deduction (~$14,600 single; ~$29,200 joint)
  • The SALT deduction is projected to remain capped at ~$10,000, though legislative changes may occur
  • Medical expenses are deductible only above ~7.5% of AGI
  • Mortgage interest is deductible on the first ~$750,000 of acquisition debt
  • Charitable contributions have various AGI-based limits depending on the type of contribution
  • Document all deductions thoroughly; the IRS can disallow claims without proper substantiation

Next Steps