Guide · Deductions
The extra standard deduction for retirees 65 and older
Once you turn 65, the tax code shields more of your income before any tax is owed. There's an extra standard deduction for age, a separate temporary bonus for seniors, and together they're a big part of why a retiree's effective rate usually sits well below their bracket.
An extra deduction just for age
Taxpayers who are 65 or older get an additional standard deduction stacked on top of the regular one. It's claimed per person, which matters for couples: if both spouses are 65 or older, the household gets it twice. You don't have to do anything special to earn it beyond reaching the age — it simply raises the amount of income that's shielded before the first dollar of tax. The exact figure is set each year, and Harbor applies the current-law amount for the tax year you're modeling.
A temporary senior bonus on top
Separately, current law adds a temporary additional senior deduction — a "senior bonus" — for taxpayers who are 65 or older. It applies for tax years 2025 through 2028 and is scheduled to expire after 2028. It's subject to income limits, so it phases out as income rises and doesn't help every household equally. But for many retirees it stacks on top of both the regular standard deduction and the age-65 addition, shielding a further slice of income for those four years.
Why your effective rate sits low
Add these pieces together and a meaningful amount of retirement income is shielded before any tax is owed at all. That's a large part of why a retiree's effective rate — total tax divided by total income — usually lands well below their bracket. The shielded slice comes off the top, so the income that does get taxed starts at the lowest rates. It's also why the marginal cost of the next dollar can still be high even when the average rate looks gentle.
Does itemizing still make sense?
Itemizing beats the standard deduction only when your itemized totals exceed it — and the senior additions make the standard deduction larger, so the bar is higher in retirement. Add up deductible medical costs above the threshold, state and local taxes, mortgage interest, and charitable gifts. If that total clears your now-larger senior standard deduction, itemize; if it doesn't, take the standard deduction. For many retirees, especially those who've paid off a mortgage, the standard deduction wins by a wider margin than it did in their working years.
How Harbor handles it
Harbor applies the age-65 additional deduction and the temporary senior bonus for you — including the bonus's income phaseout and its scheduled expiry after 2028, which is a planning wrinkle worth watching if you're projecting several years out. It also compares standard versus itemized on your actual numbers and picks the larger automatically, so you see the real deduction for the tax year you're modeling rather than guessing which path applies.
See your real deduction
Enter your numbers and Harbor applies the senior deductions and picks standard vs. itemized for you.
Start planning — it's free →Common questions
How much is the extra standard deduction for people over 65?
Taxpayers who are 65 or older get an additional standard deduction on top of the regular standard deduction, and it's claimed per person — a married couple who are both 65 or older get it twice. The exact figure is set each year; Harbor applies the current-law amount for the tax year you're modeling, so you don't have to look it up. Current law also adds a separate, temporary senior bonus deduction for 2025 through 2028.
Should I still itemize in retirement?
Only if your itemized deductions add up to more than your standard deduction — and the senior additions make the standard deduction larger, so the bar is higher in retirement. Add up deductible medical costs above the threshold, state and local taxes, mortgage interest, and charitable gifts; if the total beats your (now larger) senior standard deduction, itemize. Harbor compares both and picks the larger automatically.