The numbers you compare against
The tips, overtime, car loan and senior deductions for 2025 to 2028 are available either way, so they do not affect this choice.
| Filing status | 2025 | 2026 |
|---|---|---|
| Single or married filing separately | $15,750 | $16,100 |
| Married filing jointly | $31,500 | $32,200 |
| Head of household | $23,625 | $24,150 |
What goes on Schedule A
- State and local taxes: property tax plus Massachusetts income tax paid during the year, up to $40,000 for 2025 ($40,400 for 2026), reduced above $500,000 of MAGI ($505,000 for 2026)
- Mortgage interest on your home, from Form 1098
- Charitable gifts (from 2026, only the part above 0.5% of AGI)
- Medical expenses above the threshold, for households with large bills
A Massachusetts worked example
Massachusetts homeowners have two large state and local taxes: property tax and a 5% income tax on most income. Under the old $10,000 cap, those alone used up the allowance. Under the higher cap, they can both count.
| Item | Under old $10,000 cap | Under 2025 $40,000 cap |
|---|---|---|
| Property tax | $9,000 | $9,000 |
| Massachusetts income tax paid | $10,000 | $10,000 |
| SALT allowed | $10,000 | $19,000 |
| Mortgage interest | $13,000 | $13,000 |
| Charitable gifts | $2,000 | $2,000 |
| Total itemized | $25,000 | $34,000 |
| Standard deduction (joint) | $31,500 | $31,500 |
| Better choice | Standard deduction | Itemize, by $2,500 |
Illustrative figures only. The saving is the extra $2,500 of deduction multiplied by the couple's federal bracket, 24% at this income in 2025, or about $600.
Massachusetts: there is no choice to make
The Form 1 does not use the standard deduction or Schedule A. DOR says Massachusetts does not allow the federal standard deduction and does not allow federal Schedule A deductions; you claim only the deductions specified on the Massachusetts forms. That means your Form 1 is the same whether you itemize federally or not.
Massachusetts instead uses personal exemptions ($4,400 single, $6,800 head of household, $8,800 joint for 2025) and its own deductions, such as the rent deduction and the 529 contribution deduction.
| Federal | Massachusetts | |
|---|---|---|
| Standard deduction | $15,750 / $31,500 / $23,625 (2025) | None |
| Itemized deductions | Schedule A, SALT capped at $40,000 | Not allowed |
| Property tax | Itemized, within the SALT cap | Not deductible; may count toward the senior circuit breaker |
| Personal exemptions | None | $4,400 / $6,800 / $8,800 |
When the standard deduction still wins
- No mortgage, or a small remaining balance
- Modest property tax and income
- Single filers, whose state and local taxes may already fall below $15,750
- Very high incomes where the SALT cap phases back down toward $10,000
How to run the comparison yourself
- 1.Find the property tax you paid during the year, from your town's bills or your mortgage escrow statement.
- 2.Find the Massachusetts income tax you paid during the year: withholding on your W-2s plus any estimated payments and any balance paid with last year's return.
- 3.Add the two and apply the cap: $40,000 for 2025, reduced if MAGI is over $500,000.
- 4.Add mortgage interest from Form 1098 and your charitable gifts.
- 5.Compare the total with your standard deduction. If it is higher, itemize.
What changes for 2026
The 2026 comparison has more moving parts. The SALT cap rises to $40,400 and the standard deduction to $32,200 for joint filers. Itemizers can deduct charitable gifts only above 0.5% of AGI, while non-itemizers gain a new deduction of up to $1,000 ($2,000 joint) for cash gifts, which slightly favors the standard deduction for households close to the line. Top-bracket taxpayers also face a new 5.4% reduction in itemized deductions.
Households near the break-even point can sometimes come out ahead by bunching deductible payments, such as charitable gifts, into alternate years. Whether that works depends on your numbers and should be decided before December.
Where we come in
We compare the two on every federal return we prepare, and for 2026 we also account for the new charitable floor and, for top-bracket households, the new overall itemized limit. Before we start, we give you a scope and a price in writing.
Figures on this page were checked against the IRS and Massachusetts sources listed alongside on 28 Sep 2026. They change — confirm the current amount before relying on one.
General information for owner-led businesses, not advice for your specific situation. Tax and accounting rules change, and how they apply depends on facts particular to your business. Talk to us — or to another qualified professional — before acting on anything here.
