The standard deduction for 2026 is higher than ever, thanks to the One Big Beautiful Bill Act (OBBBA). The law permanently extended the nearly doubled standard deduction that was introduced by the 2017 Tax Cuts and Jobs Act — which was originally scheduled to revert to much lower levels after 2025.
2026 Standard Deduction Amounts
| Filing Status | 2026 Standard Deduction | Temporary Bonus (2025-2028) | Total Available |
|---|---|---|---|
| Single | $16,550 | +$1,000 | $17,550 |
| Married Filing Jointly | $33,100 | +$2,000 | $35,100 |
| Married Filing Separately | $16,550 | +$1,000 | $17,550 |
| Head of Household | $24,800 | +$1,000 | $25,800 |
Additional standard deduction for age 65+ or blind: approximately $1,600 (single/HoH) or $1,300 (married) per qualifying condition.
What the OBBBA Changed
1. Made the Doubled Standard Deduction Permanent
The TCJA roughly doubled the standard deduction in 2018 — from ~$6,350 to ~$12,000 for single filers. This was scheduled to expire after 2025, reverting to pre-TCJA levels (roughly $8,000-9,000 for single filers after inflation). The OBBBA made the higher levels permanent.
2. Added a Temporary Bonus
On top of the permanent increase, the OBBBA provides an additional standard deduction amount of $1,000 for single/HoH filers and $2,000 for married filing jointly, available from 2025 through 2028. After 2028, this bonus expires.
3. Permanently Repealed Personal Exemptions
Under pre-TCJA law, taxpayers could claim a personal exemption (~$5,000 per person) in addition to the standard deduction. The TCJA suspended these exemptions through 2025 — they were scheduled to return in 2026. The OBBBA permanently eliminated them.
Net effect: For single filers and married couples with one child or no children, the higher standard deduction more than compensates for the lost personal exemption. For larger families, the expanded Child Tax Credit is designed to make up the difference.
Standard Deduction vs. Itemizing in 2026
You should itemize if your total itemized deductions exceed your standard deduction. Common itemized deductions include:
- State and local taxes (SALT): Now up to $40,000 (OBBBA increased from $10,000 for AGI under $500,000)
- Mortgage interest: On up to $750,000 of acquisition debt
- Charitable contributions
- Medical expenses: Exceeding 7.5% of AGI
- Casualty and theft losses (from federally declared disasters only)
When Itemizing Likely Makes Sense
| Scenario | Standard Deduction | Likely Itemized Total | Better Choice |
|---|---|---|---|
| Single, renting, low-tax state | $17,550 | ~$5,000 | Standard |
| Married, homeowner, high-tax state | $35,100 | ~$45,000+ | Itemize |
| Single, homeowner, NY/CA | $17,550 | ~$22,000+ | Itemize |
| Married, renting, moderate state | $35,100 | ~$15,000 | Standard |
The raised SALT cap ($40,000 vs. $10,000) pushes more people into itemizing territory — especially homeowners in high-tax states who also pay significant state income taxes.
For Self-Employed: Standard Deduction + Business Deductions
This is the most commonly misunderstood point for freelancers and self-employed individuals: the standard deduction and business deductions are not either/or. You can — and should — claim both.
- Business deductions go on Schedule C and reduce your self-employment income (and self-employment tax)
- Standard deduction (or itemized deductions) reduces your personal taxable income on Form 1040
- QBI deduction is a third, separate deduction calculated from your net business income
Example: A freelancer with $100,000 gross income, $20,000 in business expenses, and the standard deduction:
- Schedule C net income: $80,000 (after $20,000 business deductions)
- QBI deduction: $18,400 (23% of $80,000)
- Standard deduction: $17,550
- Taxable income: $80,000 – $18,400 – $17,550 = $44,050
Business deductions, QBI deduction, and standard deduction all stack — tracking business expenses is essential regardless of whether you take the standard deduction.
Frequently Asked Questions
Is the standard deduction permanent now?
Yes. The OBBBA permanently extended the higher standard deduction amounts. The temporary bonus ($1,000/$2,000) expires after 2028, but the base amounts continue with annual inflation adjustments.
Will personal exemptions come back?
No. The OBBBA permanently repealed personal exemptions. They will not return in 2026 or any future year under current law.
Does the standard deduction affect self-employment tax?
No. Self-employment tax is calculated on your net self-employment income (Schedule C profit), not your taxable income after the standard deduction. Business deductions reduce SE tax; the standard deduction does not.
Should freelancers take the standard deduction or itemize?
It depends on your personal deductions — not your business expenses. Business expenses on Schedule C are separate from the standard deduction/itemizing decision. Most freelancers who rent (no mortgage interest deduction) and live in low-tax states will take the standard deduction. Homeowners in high-tax states may benefit from itemizing, especially with the SALT cap at $40,000.
Bottom Line
The 2026 standard deduction at $16,550 (single) / $33,100 (MFJ) — plus the temporary $1,000/$2,000 bonus — provides significant tax relief for all filers. For self-employed individuals, remember that this works alongside your business deductions and the 23% QBI deduction — all three stack to minimize your tax bill.
