Quick answer: Take whichever is larger: the standard deduction for your filing status, or the total of your itemized deductions (state and local taxes up to the cap, mortgage interest, charitable gifts, and medical costs above the floor). Most households come out ahead with the standard deduction, but the higher state and local tax cap that began in 2025 has pushed more New York homeowners back toward itemizing. New York also lets you make the choice on your state return separately from your federal one.
Every spring we sit down with clients who have kept a shoebox of receipts all year, hoping to itemize. Sometimes it pays off. Often the standard deduction wins anyway. Here is how we walk through the decision, and what has changed recently.
What is the difference between itemizing and the standard deduction?
The standard deduction is a flat amount the IRS lets you subtract from income based on your filing status, with an extra amount if you are 65 or older or blind. You do not have to prove any expenses to claim it. The IRS adjusts it for inflation each year, so check the current figures on irs.gov before you plan.
Itemizing means listing specific deductible expenses on Schedule A instead. You only itemize when that list adds up to more than your standard deduction. You cannot do both on the same federal return.
Which expenses count when you itemize?
The main categories on Schedule A are:
- State and local taxes (SALT): New York income tax withheld or paid, plus property taxes on your home, up to an annual cap.
- Mortgage interest: interest on acquisition debt for your main home and one second home, within the loan limits.
- Charitable contributions: cash and property given to qualified charities, with substantiation.
- Medical and dental expenses: only the portion above a percentage of your adjusted gross income, which is a high bar for most people.
- A few others: casualty losses from federally declared disasters, gambling losses up to winnings, and some less common items.
Things that no longer count for most people include unreimbursed employee expenses and tax preparation fees. Those miscellaneous deductions were eliminated and are not coming back.
How did the new SALT cap change the math for New Yorkers?
For years, the SALT deduction was capped at $10,000. That cap hit Central New York homeowners hard, because a family in Onondaga or Madison County paying both state income tax and school and county property taxes could easily blow past it. Once you lost most of your SALT deduction, itemizing rarely made sense.
Legislation passed in 2025 raised that cap substantially beginning with 2025 returns, with small increases scheduled each year through 2029 before it is set to revert. The higher cap phases down for taxpayers with modified adjusted gross income above a set threshold, so higher earners may not get the full benefit. The IRS has published guidance on the change, and because the numbers move each year we check the current limit and phase-down for every client rather than relying on memory.
The practical effect: a married couple in Syracuse with a mortgage, solid property taxes, and regular giving may now find itemizing worth a second look, even if they took the standard deduction the last several years.
How do I actually run the comparison?
Here is the simple process we use:
- Add up your New York income tax withheld or paid during the year, plus property taxes paid. Apply the current SALT cap.
- Add mortgage interest from your Form 1098.
- Add documented charitable gifts.
- Add medical costs, then subtract the AGI floor. If the result is negative, use zero.
- Compare the total to your standard deduction, including any age-65 add-on.
If you are within a few thousand dollars either way, it is worth planning ahead rather than just reacting at filing time. Tax software will make the choice for you, but it will not tell you how to move the needle next year.
Can I itemize on my New York return but not federally?
Yes, and this surprises a lot of people. New York decoupled from the federal choice, so you can take the federal standard deduction and still itemize on your New York return if that produces a better state result. New York computes its own itemized deduction with its own adjustments, and it has its own standard deduction amounts.
This matters most for people whose itemized total is close to the federal line. A retired couple in Cortland County, for example, might take the federal standard deduction but find that itemizing on the state return saves a little. Our New York State tax services include checking both sides every year.
What is bunching, and does it still work?
Bunching means timing deductible expenses so that you itemize in one year and take the standard deduction in the next. Charitable giving is the easiest lever. Instead of giving the same amount every December, you give two years' worth in one year, often through a donor-advised fund, and then skip a year.
Bunching still works, but a few rule changes starting in 2026 affect it. Itemizers now face a small floor on charitable deductions tied to AGI, and non-itemizers get a modest above-the-line deduction for cash gifts. We cover those details in our article on charitable giving strategies. Property taxes can sometimes be bunched too, but only if the tax has actually been assessed, so check with your town or county before prepaying.
Frequently asked questions
Is it better to itemize or take the standard deduction?
Neither is better in general. You should take whichever gives you the larger deduction, because a larger deduction means less taxable income. For most households that is the standard deduction, but homeowners with significant property tax, mortgage interest, and charitable giving should run the numbers each year.
Do I need receipts if I take the standard deduction?
No. The standard deduction requires no documentation of expenses. Still, it is wise to keep records of property taxes, mortgage interest, and giving, since you may want to itemize in a future year or on your New York return.
Can married couples filing separately each choose differently?
No. If you are married filing separately and one spouse itemizes, the other must itemize too, even if their own itemized deductions are small. This rule catches people off guard, so coordinate before either of you files.
Does the extra deduction for seniors affect this decision?
Taxpayers 65 and older already get a higher standard deduction, and recent legislation added a separate deduction for seniors for 2025 through 2028 that is available whether or not you itemize, subject to income limits. Because it does not depend on itemizing, it generally makes the standard deduction even more attractive for retirees. Check irs.gov for the current amount and phase-out.
This article is general information for 2026, not tax or legal advice for your situation. Tax rules and figures change; confirm current amounts with the IRS, New York State, or your accountant before acting.
Related service: Personal Tax Preparation & Planning