Standard Deduction

The standard deduction for taxpayers who do not itemize deductions on Form 1040, Schedule A, has increased. The standard deduction amounts for 2025 are:

• $31,500 – Married Filing Jointly or Qualifying Surviving Spouse
• $23,625 – Head of Household
• $15,750 – Single or Married Filing Separately

Taxpayers who are 65 and Older or are Blind

For 2025, the additional standard deduction amounts for taxpayers who are 65 and older or blind are:

• $2,000 for Single or Head of Household (increase of $50)
• $1,600 for married taxpayers or Qualifying Surviving Spouse (increase of $50)

Dependents

For 2025, the standard deduction amount for an individual who may be claimed as a dependent by another taxpayer cannot exceed the greater of (1) $1,350, or (2) the sum of $450 and the individual's earned income.

Limitation on Deduction for State and Local, etc. Taxes (SALT)

The following provision changed due to H.R. 1, One Big Beautiful Bill Act:

Provides a temporary increase to the state and local tax (SALT) deduction limitation from $10,000 to $40,000 effective for calendar years that begin in 2025 and end before January 1, 2030. The applicable limitation amount (half the applicable limitation amount in the case of a married individual filing a separate return) in any taxable year beginning in calendar year 2025 is $40,000. The applicable limitation is adjusted for tax years beginning after 2025.