IRS Standard Deduction & Exemption Amounts (2025 Update)

This article on standard deductions has been updated for the 2025 tax year, after the “One Big Beautiful Bill Act” (OBBBA) legislation was passed. The IRS had previously released its 2025 standard deduction amounts, adjusted for inflation (similar to its tax rate brackets, maximum 401K and maximum IRA contribution levels, etc.). However, after passage of the OBBBA there has been some changes to the standard deduction amounts for 2025, along with a new “senior bonus” for individuals age 65+. Let’s start with some basics.

What is a Standard Deduction?

The standard deduction can lower a taxpayer’s taxable income by allowing them to deduct a specified amount defined by the IRS on their tax return. The standard deduction reduces the amount of taxable income, dollar-for-dollar. The amount is adjusted for inflation each year, and varies based on the taxpayers filing status (single, married filing jointly, married filing separately, or head of household), age (there is an additional standard deduction for those age 65+), and vision (there is an additional standard deduction for individuals who are legally blind).

Taxpayers typically have the choice between claiming the set standard deduction amount or itemizing tax deductions where they add up all possible deductions for the year. Using tax software (see my cheapest efile recommendations), taxpayers can calculate which of the two (standard or total itemized) deductions would be higher and choose to deduct that amount from their taxable income. In that regard, the standard deduction is a benefit to those with lower itemized deductions. The standard deduction will be the single largest tax deduction most taxpayers will take.

Aside from the standard deductions, there are income tax credits that can be claimed, whether you itemize your taxes or take the standard deduction, for eligible dependents (more on that below).

Note that with the “Tax Cut & Jobs Act” tax reform that went into effect in 2018, the standard deduction levels were increased and personal exemption deductions were eliminated, along with a number of other significant changes to the tax code. These changes were set to expire after the 2025 tax year without further legislation extending them. But, the “One Big Beautiful Bill Act”, passed in July of 2025, permanently extended and slightly increased standard deduction amounts.

2025 Standard Deduction Amounts

The standard deductions amounts for 2025, after the One Big Beautiful Bill Act changes are:

The OBBBA Created a New Temporary Bonus Senior Standard Deduction for Taxpayers Age 65+, in 2025-2028

The OBBBA added a new temporary bonus standard deduction for 2025-2028 for senior taxpayers age 65+. This senior deduction is in addition to the existing standard deduction and age-related additional deductions.

• Bonus Deduction Amount Total: $6,000 senior deduction is per eligible individual (i.e., $12,000 total for a married couple where both spouses qualify).
• Income Eligibility: deduction phases out for taxpayers with modified adjusted gross income over $75,000 ($150,000 for joint filers).
• Other Eligibility Notes:
  • a taxpayer must attain age 65 on or before the last day of the taxable year.
  • include the Social Security Number of the qualifying individual(s) on the return, and
  • file jointly if married, to claim the deduction.

Claiming Dependents in 2025

Separate from the standard deduction are credits for “dependents”. Dependents are most often children – and, if qualified, they might result in a Child Tax Credit of up to $2,200 (refundable up to $1,700). Other qualified relative dependents may result in a tax credit up to $500.

Note that spouses cannot be claimed as dependents.

A Non-Itemized Charitable Deduction for Standard Deduction Filers Starts in 2026

The OBBBA also created a new non-itemized charitable deduction for standard deduction filers that begins in 2026 and lasts indefinitely. The maximum deduction is $1,000 for individual filers and $2,000 for Married Filing Jointly.

What Percent of Taxpayers Take the Standard Deduction?

According to the IRS, about 90% of filers claim the standard deduction.

Don’t Forget the Earned Income Tax Credit

Those with (and even without) children may also be eligible for the Earned Income Tax Credit (EITC) if their income falls within specified ranges and they meet other criteria. I’d recommend becoming familiar with the EITC as it is one of the most significant tax credits within the U.S. tax code.

Standard Deduction & Other Tax Resources

For more information on standard deductions, itemizing taxes, various tax credits and deductions, check out IRS publication 501 and my summarized “how to do your taxes” guide.

Standard Deduction Discussion

• Will you be itemizing your taxes or taking the standard deduction this year?