Tax Deduction Calculator 2025 β See Your Actual Tax Savings
Calculate how much each tax deduction saves you in actual dollars. Enter your deductions and income to see real tax savings at your marginal rate.
$
$
$
Capped at $10,000 $
$
Only amount above 7.5% AGI is deductible $
$0
Total Tax Savings
0%
Your Marginal Rate
$0
Total Deductions Used
$0
Tax With Deductions
Tax Savings by Deduction
| Deduction | Your Amount | Deductible | Tax Savings |
|---|
How to Use This Tax Deduction Calculator
Enter your income and all your itemized deductions. The calculator determines your marginal tax bracket and shows exactly how many tax dollars each deduction saves you. It also compares itemizing to the standard deduction.
The Formula
Tax Savings per Deduction = Deductible Amount Γ Marginal Tax Rate
Marginal Rate = the rate applied to your highest dollar of income
Deductions only save taxes if total itemized > standard deduction
Marginal Rate = the rate applied to your highest dollar of income
Deductions only save taxes if total itemized > standard deduction
Example
Single filer, $90,000 income, 22% marginal rate:
Mortgage interest $10,000 β saves $2,200
SALT $8,000 β saves $1,760
Charitable $2,000 β saves $440
Total deductions: $20,000 vs standard $15,000 β benefit of $5,000 extra β $1,100 additional savings
Mortgage interest $10,000 β saves $2,200
SALT $8,000 β saves $1,760
Charitable $2,000 β saves $440
Total deductions: $20,000 vs standard $15,000 β benefit of $5,000 extra β $1,100 additional savings
Extended
Above vs Below the Line Deductions
Complete guide to above-the-line and below-the-line deductions and their impact
Above vs Below the Line Deductions
Above-the-Line Deductions (Always Available)
These reduce your AGI regardless of whether you itemize or take the standard deduction. They are generally more valuable because they also reduce your AGI, which affects other income-based limits.
| Deduction | 2025 Limit | Notes |
|---|---|---|
| Traditional IRA contribution | $7,000 ($8,000 age 50+) | Income limits apply if you have a workplace plan |
| 401(k) / 403(b) contribution | $23,500 ($31,000 age 50+) | Pre-tax reduces W-2 Box 1 income |
| HSA contribution | $4,300 individual / $8,550 family | Triple tax advantage |
| Student loan interest | $2,500 max | Phase-out $80K-$95K single, $165K-$195K MFJ |
| Self-employment tax (50%) | 50% of SE tax paid | Auto-calculated on Schedule SE |
| Self-employed health insurance | 100% of premiums | Cannot exceed net self-employment income |
| Alimony paid (pre-2019 divorces) | Actual amount paid | Post-2018 divorce agreements not deductible |
Below-the-Line Deductions (Itemized Only)
These only benefit you if your total itemized deductions exceed the standard deduction. The incremental value is the extra deductions above standard Γ your marginal rate.
| Deduction | 2025 Limit | Notes |
|---|---|---|
| Mortgage interest | Loans up to $750K | Primary + 1 secondary home |
| State and local taxes (SALT) | $10,000 cap ($5K MFS) | Income + property taxes |
| Charitable contributions (cash) | 60% of AGI | 30% for non-cash property |
| Medical expenses | Above 7.5% AGI floor | Only unreimbursed qualified expenses |
| Casualty/theft losses | Federally declared disasters only | Above 10% AGI threshold |
| Investment interest expense | Net investment income | Form 4952 required |
Frequently Asked Questions
What is the difference between above-the-line and below-the-line deductions?
Above-the-line deductions (also called "adjustments to income") reduce your Adjusted Gross Income (AGI) and are available whether you itemize or take the standard deduction. Examples include IRA contributions, student loan interest, and 50% of self-employment tax. Below-the-line deductions only apply if you itemize, such as mortgage interest, SALT, and charitable donations.
How much is the mortgage interest deduction worth?
You can deduct interest on mortgage debt up to $750,000 ($375,000 if married filing separately). The tax savings equal your deductible interest times your marginal tax rate. For example, $15,000 in mortgage interest at a 22% marginal rate saves $3,300 in federal taxes.
What counts as a charitable deduction?
Cash contributions to qualified 501(c)(3) organizations are deductible up to 60% of AGI. Non-cash property donations are limited to 30% of AGI. You need a written acknowledgment for donations of $250+. Donations to individuals or political organizations are not deductible.
What medical expenses are deductible?
You can deduct qualified medical expenses exceeding 7.5% of your AGI. Deductible expenses include: doctor visits, prescription drugs, dental care, vision, hearing aids, medical equipment, long-term care insurance premiums, and transportation to medical appointments. Cosmetic procedures and over-the-counter medications (without prescription) generally do not qualify.
Can I deduct my home office?
Employees cannot deduct home office expenses after the 2017 tax law changes. Self-employed individuals and small business owners can still deduct home office expenses using either the simplified method ($5/sq ft, max $1,500) or the regular method (actual expenses Γ business percentage). The space must be used regularly and exclusively for business.