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Itemized Deductions: What They Are, Examples

Itemizing allows you to pick and choose your tax deductions. Common deductions include those for medical expenses, mortgage interest and property tax.

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For some taxpayers, itemizing on a tax return can make a huge difference in their tax bill. But itemized deductions aren't necessarily no-brainers.

What are itemized deductions?

Itemized deductions are certain expenses allowed by the IRS that can decrease your taxable income (the amount of your income that's subject to taxes). When you itemize on your tax return, you opt to pick and choose from the multitude of individual tax deductions out there instead of taking the flat-dollar standard deduction

How to choose: Standard deduction vs. itemized deductions

If your itemized deductions add up to more than the standard deduction amounts above, you should consider itemizing to save money. On the other hand, if your standard deduction is more than your itemized deductions, it might be worth it to take the standard deduction and save some time.

If you’re using tax software, it’s probably worth the time to answer all the questions about itemized deductions that might apply to you. Why? The software or your tax preparer can run your return both ways to see which method produces a lower tax bill. Even if you end up taking the standard deduction, at least you’ll know you’re coming out ahead.

Here's something homeowners and people who live in high-tax states will want to pay attention to this filing season:

If you paid a good chunk in property taxes and/or state and local taxes in 2025, it's worth taking a closer look at itemizing this year. The "One Big, Beautiful Bill" Act bumped the maximum SALT deduction from $10,000 all the way up to $40,000 ($20,000 if you're married filing separately). Some income restrictions apply, which could result in a smaller deduction for some high earners, but it may still be worth crunching the numbers to make sure you're getting the most out of your return.

» Try out both scenarios: NerdWallet's tax calculator

on Priority Tax Relief's website

on Alleviate Tax's website

Common itemized deductions

There are many types of itemized deductions, but claiming them can be complicated. Each type of deduction usually has its own set of rules about who and what qualifies, so make sure to learn more about each benefit to understand if it makes sense for your situation.

Here are a few of the most popular itemized deductions:

Medical expense deduction

The IRS lets taxpayers deduct a certain percentage of unreimbursed medical and dental expenses they've amassed throughout the year. The keyword here is unreimbursed: to qualify, expenses must have been paid for out of pocket, meaning your insurance could not have covered them or reimbursed you for them. These types of expenses can include prescription drugs, payments to doctors, hospital care, dentures and more.

Property tax deduction

Homeowners who are subject to high property taxes can take advantage of what's known as the SALT deduction. For 2025, this allows them to write off up to $40,000 in property taxes and either local state and local income taxes or sales taxes.

Previously, the SALT deduction was capped at $10,000, but the "One Big Beautiful Bill Act" increased the maximum write-off with some phase-down restrictions for high earners. It will continue to rise each year until reverting back to $10,000 in 2030

Mortgage interest deduction

Taxpayers who have a home mortgage can take advantage of this itemized deduction that allows them to reduce taxable income each year they pay interest on the loan. The deduction is capped at the first $750,000 of mortgage debt for either your main or second home. For those who are married but file separately, the limit of deductible mortgage interest is capped at the first $375,000. Plus, there are different rules for mortgages before December 2017.

Charitable contribution deduction

Contributions made to IRS-recognized charities are considered deductible expenses. How much you are able to deduct depends on the type of contribution made, but typically it ranges from 20% to 60% of your adjusted gross income.

» Ready to file?

Before you itemize, consider the following

Advantages of itemizing

Itemized deductions might add up to more than the standard deduction. The more you can deduct, the less you’ll pay in taxes, which is why some people itemize — the total of their itemized deductions is more than the standard deduction.

Some situations make itemizing especially attractive. If you own your home, for example, your itemized deductions for mortgage interest and property taxes may easily exceed the standard deduction, saving you money. This is perhaps worth revisiting more closely this year, as the SALT deduction has substantially increased.

Disadvantages of itemizing

You have to understand the rules. As mentioned earlier, some itemized deductions come with a few hurdles. If you have medical expenses, for example, you can only deduct the portion that exceeds 7.5% of your adjusted gross income.

You might have to spend more time on your tax return. If you itemize, you’ll need to set aside extra time when preparing your returns to fill out Schedule A, as well as the supporting schedules that feed into those forms.

You need proof. You need to be able to substantiate your deductions. That means keeping records and being organized. If you normally take the standard deduction and are thinking of itemizing when preparing your return next year, start saving your receipts and other proof for your deductions now.

Heads Up, Married Filers

You can’t take the standard deduction if you’re married but filing separately and your spouse chooses to itemize. You both have to do the same thing — either itemize or take the standard deduction.

Here are some big reasons people take the standard deduction instead of itemizing on their tax returns.

It's faster. Taking the standard deduction makes the tax-prep process relatively quick and easy, which is probably one reason most taxpayers take the standard deduction instead of itemizing.

It usually gets bigger every year. Congress sets the amount of the standard deduction, and it’s typically adjusted every year for inflation.

Some people get more (or less). The standard deduction is higher for people 65 and older and/or blind, though filing status is still a factor. And if someone can claim you as a dependent, you get a smaller standard deduction.

on Priority Tax Relief's website

on Alleviate Tax's website

Looking ahead: Changes to itemized deductions in 2026

Itemized deductions will undergo changes in 2026 (taxes filed in 2027) due to the passage of the "One Big Beautiful Bill Act" (OBBBA).

For taxpayers who fall into the highest tax bracket — 37% — the OBBBA introduced a 35% cap on itemized deductions. This means that someone in the top bracket would get a maximum of 35 cents per dollar for their itemized deductions rather than 37 cents per dollar.

Prior to 2017, taxpayers could claim what were known as "miscellaneous itemized deductions," which are different from the itemized deductions we list above. These miscellaneous deductions covered things like unreimbursed employee expenses, legal expenses, tax filing fees and other expenses. The Tax Cuts and Jobs Act of 2017, which was passed into law during President Donald Trump's first term, eliminated these miscellaneous deductions. The OBBBA makes this elimination permanent, with the exception of the educator expense deduction, which is here to stay.

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