Trends in Itemized Deductions Since TCJA
The OBBBA made permanent and expanded standard and itemized deduction reforms originally enacted under the TCJA in 2017.
When taxpayers file their federal individual income tax return, they choose between claiming the standard deduction and claiming a series of itemized deductions, such as the state and local tax (SALT) deduction and the mortgage interest deduction, to lower their taxable income.
Among the many changes introduced by the Tax Cuts and Jobs Act of 2017 (TCJA), one of the most significant was nearly doubling the standard deduction and scaling back some itemized deductions. Taxpayers typically choose to itemize only if their total itemized deductions exceed the standard deduction. So, when TCJA nearly doubled the standard deduction while also scaling back some itemized deductions, the portion of taxpayers choosing to itemize declined.
The recently enacted One Big Beautiful Bill Act (OBBBA) permanently extended, expanded, and augmented reforms surrounding the standard deduction and itemized deductions. This data brief puts these new reforms in historical context by evaluating trends in itemized deductions after TCJA became law.
Data summary
- After TCJA nearly doubled the standard deduction and scaled back some itemized deductions, the portion of taxpayers choosing to itemize declined.
- The portion of tax returns claiming itemized deductions declined from 30.6% in 2017 to 9.5% in 2022, while the total amount of itemized deductions claimed declined from $1.4 trillion to $668.0 billion. Consequently, the percent reduction in aggregate taxable income provided by itemized deductions declined from 12.7% to 4.5%.
- The rate at which taxpayers claimed itemized deductions declined across the income distribution. For example, itemizing among people earning between $25,000 and $50,000 per year declined from 18.3% of returns in 2017 to 3.4% of returns in 2022. It also fell from 80% to 22.5% in the same years among people earning between $100,000 and $500,000.
- After 46.7% of federal tax returns from Maryland itemized in 2017— the highest rate in any state —only 20.0% of Maryland returns did so in 2022. Similarly, itemizing declined in Massachusetts and Virginia from 37.8% and 38.1% to 12.2% and 13.5%, respectively.
Keep exploring
- How has TCJA impacted individual income taxes? - In 2025, the One Big Beautiful Bill Act expanded or made parts of the Tax Cuts and Jobs Act permanent. Here's how the TCJA has affected taxes since 2018.
- The State and Local Tax (SALT) deduction cap: explained - SALT deductions are mostly claimed by those making $100,000 or more. How does the cap work?
- Who doesn’t pay federal income taxes? - Whether someone owes federal income tax depends on their income, deductions, and credits. In 2023, 3 in 10 filers owed nothing.
- All about taxes - The One Big Beautiful Bill Act (OBBBA) came with some big tax changes. When do they take effect and what's the tax story so far? Here's your one stop shop for everything taxes.