Standard deduction (US federal)
The flat amount subtracted from gross income before federal-income-tax brackets apply — $15,000 single (2025).
The standard deduction is the flat amount the IRS lets every taxpayer subtract from gross income before computing federal income tax. For 2025 it is $15,000 for single filers and $30,000 for married filing jointly. Roughly 90% of US taxpayers take the standard deduction rather than itemising — itemising only beats it when total deductions (mortgage interest, state-and-local-tax capped at $10k, charitable giving, etc.) exceed the standard amount.
The standard deduction reduces taxable income, not tax owed. A $15,000 deduction in the 22% bracket is worth $3,300 in tax. It is independent of FICA — FICA applies to gross wages from the first dollar, with no standard deduction equivalent.
The IRS adjusts the standard deduction for inflation each November via the Chained CPI; for 2025 it rose $400 from $14,600. The site's US calculator applies the 2025 single-filer value of $15,000 automatically; head-of-household and MFJ filing statuses arrive in a future release.
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See also
- FICA (Social Security + Medicare) — The US payroll tax that funds Social Security and Medicare — flat-rate, applies before federal income tax.
- Social Security wage base (US FICA cap) — The annual ceiling above which the 6.2% Social Security portion of FICA stops applying — $176,100 (2025).
- Gross pay — The total annual salary before any tax, social-insurance, or pension deductions are taken out.
- Marginal tax rate — The percentage paid in tax on the next unit of income earned — distinct from the average effective rate.