What This Rule Means
The Itemized Deduction Rule
You claim either the standard deduction or itemized deductions — not both. Itemizing requires filing Schedule A and documenting each deduction. Most taxpayers take the standard deduction; itemizing is typically advantageous for homeowners with large mortgage interest and property tax bills, or individuals with significant charitable giving or medical expenses.
How It Works
How Itemized Deductions Work
- The SALT cap limits the combined deduction for state and local income (or sales) taxes plus property taxes to ( MFS). This cap was enacted under TCJA and remains in effect for 2026.
- Mortgage interest is deductible on up to of qualified loan principal for loans originated after December 15, 2017. Pre-TCJA loans are grandfathered at .
- Cash charitable donations to public charities are deductible up to of AGI. Excess amounts carry forward up to five years.
- Donations of appreciated property are generally limited to of AGI.
- Medical expenses are deductible only to the extent they exceed of AGI.
2026 Itemized Deduction Limits
Itemized Deduction Limits at a Glance
| Deduction Category | 2026 Limit | Notes |
|---|
Example Scenario
Scenario: Deciding Whether to Itemize
Scenario — Should You Itemize?
Kevin and Michelle file MFJ with AGI of $180,000. They have: $12,000 in property taxes, $9,000 in mortgage interest, and $6,000 in cash charitable donations.
The SALT cap cost them in lost deductions — taking the standard deduction is the better choice this year.
Apply These Rules to Your Numbers
See how itemized deductions affect your final after-tax income.