If you’re filing taxes in 2025, there’s some great news you don’t want to miss. The One Big Beautiful Bill Act (OBBBA) just made one of the most popular tax breaks, the standard deduction not only larger but also permanent.

For millions of Americans, this change could mean simpler tax filings, fewer headaches with itemizing, and more money kept in your pocket. Let’s break it down.

What’s Changing in 2025

Starting with the 2025 tax year, the standard deduction increases to:

• $15,750 for single filers 
• $31,500 for married couples filing jointly 
• $23,625 for heads of household
  

That’s a meaningful bump compared to past years, and it reflects Congress’s recognition that taxpayers need relief in the face of rising living costs.

The standard deduction is the default deduction most people take when filing their taxes. Instead of tracking every donation, medical bill, or deductible expense, you can simply claim this flat amount.

For many households, this will mean:

• Less paperwork (no need to itemize unless you have unusually high deductions) 
• Lower taxable income, which means a smaller tax bill 
• More certainty when planning ahead for future years
  

Annual Adjustments for Inflation

The OBBBA doesn’t just raise the deduction for 2025, it ensures the amounts will keep up with inflation starting in 2026.

That means each year, the IRS will adjust the numbers so that your tax break doesn’t lose value as prices rise. This is an important protection, especially for middle-income families feeling the pinch of higher costs.

Extra Help for Seniors and the Blind

The new law also preserves additional deductions for certain groups:

• If you’re 65 or older, you’ll continue to receive an extra tax break on top of the standard deduction.
  
• If you’re legally blind, you’ll also qualify for additional amounts. 

These add-ons can make a real difference, particularly for retirees living on fixed incomes.

For many people, the new higher standard deduction means itemizing won’t be necessary and that’s a good thing. Unless your deductible expenses (like mortgage interest, charitable donations, or medical bills) exceed these higher thresholds, you’ll likely save more time and effort by claiming the standard deduction.

But for households that do have large deductible expenses, you’ll still have the choice to itemize. The key takeaway is that everyone benefits from a larger safety net at the start.

The OBBBA makes the bigger standard deductions permanent, locks in inflation adjustments, and ensures extra help for seniors and the blind. This means more taxpayers can enjoy simplified filing and real savings year after year.