Taxes do not stop when your paycheck does. The good news is that the tax code gives retirees several breaks that can lower what you owe each year. Some apply the moment you turn 65. Others reward how you give to charity or pay for medical care. Here are five tax deductions for retirees worth knowing for 2026.
Before we start, one quick point. Most people take the standard deduction, which is a flat amount the IRS lets you subtract from your income. About 9 in 10 filers use it. A few of the breaks below apply automatically when you take the standard deduction. Others only help if you itemize, which means adding up your real costs instead. We will tell you which is which as we go.
1. The extra standard deduction for people 65 and older
If you are 65 or older, the IRS lets you subtract more from your income than younger people get. This is called the additional standard deduction, and it stacks right on top of the regular amount.
Here are the basic standard deduction amounts for the 2026 tax year (the return you will file in early 2027):
- Single: $16,100
- Married filing jointly: $32,200
- Head of household: $24,150
Now add the age 65 bonus. For 2026, a single filer or head of household who is 65 or older adds another $2,050. A married person who is 65 or older adds $1,650, and each spouse who qualifies gets their own. If you are also legally blind, you add the same amount again.
Take Linda, a single filer who turns 65 in 2026 (a hypothetical example). Her basic standard deduction is $16,100. Because she is 65 or older, she adds $2,050, for a total of $18,150. She does not have to do anything fancy. She checks a box on her return.
This break only applies if you take the standard deduction, not if you itemize. For most retirees, that is exactly what they do.
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2. The new $6,000 senior deduction for 2025 to 2028
This one is new, so it is easy to miss. A 2025 law created a separate deduction of $6,000 for people age 65 and older. A married couple where both spouses are 65 or older can claim $12,000. It is in addition to the standard deduction described above.
Here is what makes it useful: you can claim it whether you take the standard deduction or itemize. You must be 65 or older by the last day of the tax year, and if you are married you have to file jointly to claim it.
There is an income limit. The deduction starts to shrink once your modified adjusted gross income passes $75,000 if you are single, or $150,000 if you are married filing jointly. Above those points, it drops by 6 cents for every dollar of income over the line. It phases out completely at $175,000 for single filers and at $250,000 for married couples filing jointly.
This deduction is set to run for the 2025 through 2028 tax years. After that, it goes away unless Congress extends it. So if you qualify, it is worth using while it lasts.
This is also a good example of why running the numbers ahead of time pays off. If your income sits near that $75,000 or $150,000 line, the order in which you pull money from your accounts during the year can decide whether you keep the full deduction or lose part of it. A little planning before December 31 can make a real difference.
3. Medical and dental expenses above 7.5% of your income
Health costs tend to rise in retirement, and the tax code gives some relief. You can deduct medical and dental expenses, but only the part that goes above 7.5% of your adjusted gross income. And you can only claim it if you itemize.
The list of what counts is broad. It includes Medicare premiums, long-term care costs, hearing aids, dental work, eyeglasses, and the miles you drive to appointments. It does not include anything your insurance already paid back to you.
Say Harold and Ruth, both retired, have an adjusted gross income of $60,000 in 2026 (a hypothetical example). The 7.5% floor is $4,500. They spent $11,000 on medical costs that year. They can deduct the amount above $4,500, which is $6,500. But this only helps them if all their itemized costs together beat their standard deduction.
One tip for big, planned expenses. If you know a major dental or medical bill is coming, paying for it in a single tax year, rather than splitting it across two, can push you over the 7.5% line and make more of it deductible.
4. Giving to charity straight from your IRA
This one is technically an exclusion from income rather than a deduction. In some ways it can be better than a deduction, because it lowers your adjusted gross income, the number that drives many other tax calculations. It is one of the most useful tools a retiree has. It is called a qualified charitable distribution, or QCD.
Here is how it works. If you are 70½ or older, you can send money straight from your traditional IRA to a charity. The money never counts as income to you. For 2026, you can give up to $111,000 this way per person. A married couple can each give up to that amount from their own IRAs.
Why does this matter so much? Because most retirees take the standard deduction, which means a normal charitable gift gives them no tax break at all. A QCD sidesteps that problem. The gift lowers your taxable income whether you itemize or not.
There is a second benefit once you reach the age for required minimum distributions, currently 73. A required minimum distribution, or RMD, is the amount the IRS makes you pull from your retirement accounts each year. A QCD counts toward that required amount, so you can satisfy the rule without the money landing on your tax return.
Suppose Margaret is 74 and must take a $20,000 required minimum distribution in 2026 (a hypothetical example). She sends $8,000 of it directly to her church as a QCD. That $8,000 never counts as income, and it still counts toward her required distribution. She pays tax only on the remaining $12,000.
Two rules to remember. The money has to go straight from the IRA to the charity. If it passes through your hands first, it does not count. And lowering your income this way can do more than cut your tax bill. It can also help keep your Medicare premiums down, since those premiums are based on your income from two years earlier. That ripple effect is one reason it helps to look at the whole picture, not just one number, before you give.
5. State and local taxes (the SALT deduction)
If you itemize, you can deduct the state and local taxes you pay. This includes your property taxes plus either your state income tax or your state sales tax. People call this the SALT deduction.
For years, this deduction was capped at $10,000, which hurt retirees in higher-tax states. That cap went up sharply. For the 2026 tax year, you can deduct up to $40,400 in state and local taxes (the cap is lower for those married filing separately).
Imagine Frank and Carol in New Jersey pay $9,000 in property taxes and $7,000 in state income tax in 2026 (a hypothetical example). That is $16,000 in state and local taxes. Under the old $10,000 cap, they could only count $10,000. Now they can count the full $16,000, as long as they itemize.
Two things to keep in mind. The higher cap phases down for people with very high incomes, above $505,000. And the larger cap is scheduled to revert after 2029, dropping back to $10,000 beginning in 2030 unless Congress acts. For now, though, the bigger cap may be enough to make itemizing worthwhile for the first time in years for some retirees.
Should you take the standard deduction or itemize?
This is the question that ties the whole list together, and there is no single right answer. You take whichever gives you the bigger deduction.
Add up your itemized costs: state and local taxes, mortgage interest, charitable gifts, and medical expenses above the 7.5% floor. If that total beats your standard deduction (including the age 65 bonus), itemizing wins. If it does not, the standard deduction wins, and it is far simpler.
Notice how the pieces interact. The senior deduction and the QCD help you either way. The medical and SALT deductions only help if you itemize. And one move, like a QCD, can lower your income enough to change your tax bracket, protect the senior deduction, and trim your future Medicare premiums all at once.
That is why many retirees find it helpful to model a full year before it ends, either with a tax professional or with planning software that lets them test different choices side by side. Seeing the trade-offs on one screen makes a confident decision much easier than guessing.
The bottom line
You have more tax breaks in retirement than you may realize. The extra standard deduction and the new $6,000 senior deduction reward you simply for being 65 or older. The medical and SALT deductions reward you for itemizing when your costs are high enough. And the QCD lets you give to charity in a way that lowers your taxable income no matter how you file.
Your next step is simple. Pull last year’s return, list the deductions above, and check which ones you are already using and which you may be leaving on the table. A short review now can lower the bill you pay later.
This article is for educational purposes only and is not personalized financial, tax, or legal advice. Tax rules and dollar figures change, and your own situation may differ. Confirm the details that apply to you with the IRS, a qualified tax professional, or your financial advisor before acting.
Note Boldin is an affiliate relationship of Holy Schmidt!. This means if you purchase a product or use their service, we earn a small commission. This does not increase your cost.
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