Itemized Deductions: What They Are, Examples

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

What are itemized deductions?

Itemized deductions are certain expenses the IRS allows that can decrease your taxable income (the amount of your income subject to taxes). When you itemize on your tax return, you choose from the many individual tax deductions instead of taking the flat-dollar standard deduction.

Itemized deductions aren't right for everyone, but they can be attractive if you qualify for many of them. That's because the value of those deductions could be higher than what you would get with the standard deduction.

How to choose: Standard deduction vs. itemized deductions

If your itemized deductions add up to more than the standard deduction amounts, you may want to consider itemizing to save money. On the other hand, if your standard deduction is more than your itemized deductions, taking the standard deduction will save you time.

If you’re using tax software, it’s probably worth answering 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.

» Try out both scenarios: NerdWallet's tax calculator

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 2026, this allows them to write off up to $40,400 in property taxes and either 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, then revert 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

In 2026, taxpayers can take a deduction of up to $1,000 for charitable contributions made to IRS-recognized charities without having to itemize. For married couples filing jointly, the maximum is $2,000. However, if you want to deduct more, you'll need to consider itemizing to take advantage. 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.

Educator expense deduction

Educators with qualifying unreimbursed expenses (e.g., books, software, classroom supplies) can take up to $350 in deductions without having to itemize — but new for this filing season, educators can also include additional qualifying expenses as itemized deductions.

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.

Here are some big reasons people take the standard deduction instead of itemizing.

• It's faster. Taking the standard deduction makes tax prep quick and easy, which is probably why most taxpayers take it instead of itemizing.

• It usually gets bigger every year. Congress sets the standard deduction amount, and it’s typically adjusted each 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 still matters. And if someone can claim you as a dependent, you get a smaller standard deduction.