The biggest tax deductions for seniors in 2026 are the larger standard deduction for people 65 and older and the new $6,000 senior deduction created by the One Big Beautiful Bill Act for 2025 through 2028. A married couple who are both 65 or older can deduct as much as $47,500 before paying any federal income tax, if their income is under the phase-out level, based on the IRS 2026 inflation adjustments and the IRS senior deduction fact sheet. Here are the deductions and credits retirees should know about for the return they file in early 2027.
Tax Deductions for Seniors at a Glance (2026)
| Deduction | Single 65+ | Married filing jointly, both 65+ |
|---|---|---|
| Standard deduction | $16,100 | $32,200 |
| Additional amount for age 65+ | $2,050 | $3,300 ($1,650 each) |
| New senior deduction (2025-2028) | $6,000 | $12,000 |
| Total if income is under the phase-out | $24,150 | $47,500 |
Someone who is also legally blind adds another $2,050 (single) or $1,650 (each married spouse).
1. The Larger Standard Deduction
Of all the tax deductions for seniors, this is the one nearly everyone uses. If you are 65 or older on December 31, you add $2,050 to the $16,100 standard deduction as a single filer or head of household ($24,150 base for heads of household), or $1,650 per qualifying spouse if married. Most retirees no longer itemize, so this is usually their largest deduction. See our guide to the standard deduction for 2026.
2. The New $6,000 Senior Deduction
- Up to $6,000 per person 65 or older, for tax years 2025 through 2028.
- Phases out when modified AGI exceeds $75,000 ($150,000 for joint filers).
- Available whether you itemize or take the standard deduction.
- Married couples must file jointly, and each qualifying person needs a valid Social Security number.
This deduction does not change how much of your Social Security is taxable, but it lowers taxable income, which can wipe out the tax on benefits for many middle-income retirees. See how Social Security is taxed in 2026.
3. Medical Expenses, Including Medicare Premiums
If you itemize, you can deduct medical and dental costs above 7.5% of AGI. For seniors, this often includes Medicare Part B and Part D premiums, Medicare Advantage and Medigap premiums, qualified long-term care premiums (up to an age-based limit), dental work, hearing aids, eyeglasses, and the cost of qualified care in a nursing home or assisted living when the primary reason is medical care.
Example: A retiree with $50,000 of AGI and $9,000 of medical expenses, including $2,435 of Part B premiums ($202.90 a month), can deduct $5,250, the amount above $3,750 (7.5% of AGI), if itemizing beats the standard deduction.
4. Medicare Premiums for Self-Employed Seniors
If you have self-employment income, you may be able to deduct Medicare premiums as self-employed health insurance, above the line, without itemizing, up to your net self-employment profit.
5. Qualified Charitable Distributions
If you are 70½ or older, you can send up to $111,000 in 2026 directly from an IRA to qualifying charities. The amount is excluded from income and counts toward your required minimum distribution. Because it lowers AGI, a QCD can also help you stay under the senior deduction phase-out and reduce the taxable share of Social Security. See qualified charitable distributions.
6. The New Charitable Deduction for Non-Itemizers
Starting in 2026, seniors who take the standard deduction can also deduct up to $1,000 ($2,000 joint) of cash gifts to qualifying public charities. Gifts to donor-advised funds do not qualify. Itemizers face a new floor: only charitable gifts above 0.5% of AGI are deductible.
7. State and Local Taxes and Mortgage Interest
Seniors who itemize can deduct state and local income or sales taxes plus property taxes, up to $40,400 for 2026, and mortgage interest on up to $750,000 of acquisition debt. Homeowners who sell a main home can also exclude up to $250,000 of gain ($500,000 joint) if they meet the ownership and use tests.
8. Retirement Contributions If You Still Work
There is no age limit for IRA contributions. If you or your spouse has earned income, you can contribute up to $8,600 in 2026 ($7,500 plus a $1,100 catch-up), and a deductible traditional IRA contribution lowers taxable income. Workers 60 to 63 can add a larger $11,250 catch-up to a 401(k). Once you enroll in Medicare, you can no longer contribute to an HSA, although you can still spend the existing balance tax-free on qualified medical costs.
9. Tips and Overtime for Working Seniors
Seniors who still work in tipped jobs or earn overtime may deduct up to $25,000 of qualified tips and up to $12,500 ($25,000 joint) of overtime premium pay for 2025 through 2028, with phase-outs starting at $150,000 of modified AGI ($300,000 joint).
10. Credit for the Elderly or Disabled
Lower-income taxpayers 65 or older, or retired on permanent disability, may qualify for this credit on Schedule R. The income limits are low and have not been adjusted for inflation, so relatively few people qualify, but it is worth checking if your income and nontaxable Social Security are modest.
Common Mistakes With Tax Deductions for Seniors
- Forgetting the extra standard deduction for age 65 or blindness.
- Missing the new senior deduction because income is close to the phase-out.
- Taking an RMD and then donating cash, instead of using a QCD.
- Not having tax withheld from Social Security or IRA distributions, leading to a bill and penalties.
- Paying full tax on Social Security when better timing of IRA withdrawals could reduce it. See retiree taxes in 2026.
Frequently Asked Questions
What is the standard deduction for seniors over 65 in 2026?
$18,150 for a single filer ($16,100 plus $2,050) and $35,500 for a married couple who are both 65 or older, before the separate $6,000 senior deduction.
Who qualifies for the $6,000 senior deduction?
Anyone 65 or older by the end of the year with a valid Social Security number, filing jointly if married, with modified AGI under the phase-out ($75,000 single, $150,000 joint) for the full amount.
Can seniors deduct Medicare premiums?
Yes, as medical expenses if you itemize and exceed the 7.5% of AGI floor, or above the line if you are self-employed.
Do seniors have to pay taxes on Social Security?
Up to 85% of benefits can be taxable depending on combined income, but the larger standard deduction and senior deduction often reduce or eliminate the tax.
Final Thoughts
Tax deductions for seniors are more generous in 2026 than they have been in years, but several depend on income. Keep an eye on modified AGI, use QCDs instead of cash gifts, and review your withholding so the new deductions translate into real savings.
Have questions about how this applies to your situation? Book a free consultation with Aric and get answers from a CPA.
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
