With a bit of savvy planning, Americans can lighten their tax load through deductions and credits. Taxpayers can choose to itemize deductions or stick with the standard option. For the 2024 tax year, the standard deduction stands at $14,600 for individuals and $29,200 for joint filers — yet many still opt to itemize when the numbers stack up in their favor.
With this in mind, SmartAsset uncovered where Americans are writing off the most in taxes by ranking states by the average itemized deduction according to the latest IRS data.
Key Findings
- Itemized deductions in this state average over $120,000. Wyoming has the highest average itemized tax deductions at $121,922. This is just about double that of second-place South Dakota, where the average itemized deduction is $66,804.
- Maryland has the most households itemizing their deductions. 20.0% of tax returns in Maryland opted to itemize, with an average deduction of $32,408. California ranked second in this metric at 15.4% of returns – and an average $42,541 deduction.
- This state has the highest average adjusted gross income (AGI) at $119,196. Connecticut has the highest amount of taxable income per return. The average itemized deduction is $44,012, with 11.5% of returns itemizing.
- Utah has the highest average tax credit use. The average tax credit of $1,159 is in Utah, while it’s average $46,387 itemized deduction puts it in tenth place overall. Tax credits apply whether a household chooses to itemize or use the standard deduction.
Top 10 States With the Biggest Itemized Deductions
States are ranked based on the average itemized deduction amount for those who itemized.
- Wyoming
- Average itemized deduction amount: $121,922
- Percent of returns using itemized deduction: 5.3%
- Number of returns with itemized deductions: 14,830
- Average AGI: $108,815
- Average tax credits: $1,023
- Percent of returns using standard deduction: 92.8%
- Total tax returns: 280,750
- South Dakota
- Average itemized deduction amount: $66,804
- Percent of returns using itemized deduction: 4.5%
- Number of returns with itemized deductions: 19,990
- Average AGI: $88,023
- Average tax credits: $877
- Percent of returns using standard deduction: 93.8%
- Total tax returns: 441,520
- Nevada
- Average itemized deduction amount: $59,492
- Percent of returns using itemized deduction: 8.5%
- Number of returns with itemized deductions: 131,530
- Average AGI: $93,992
- Average tax credits: $914
- Percent of returns using standard deduction: 89.6%
- Total tax returns: 1,553,270
- Arkansas
- Average itemized deduction amount: $58,234
- Percent of returns using itemized deduction: 5.8%
- Number of returns with itemized deductions: 75,000
- Average AGI: $73,934
- Average tax credits: $773
- Percent of returns using standard deduction: 92.4%
- Total tax returns: 1,295,860
- North Dakota
- Average itemized deduction amount: $56,945
- Percent of returns using itemized deduction: 4.7%
- Number of returns with itemized deductions: 17,310
- Average AGI: $91,610
- Average tax credits: $868
- Percent of returns using standard deduction: 93.9%
- Total tax returns: 368,090
- Florida
- Average itemized deduction amount: $56,217
- Percent of returns using itemized deduction: 8.2%
- Number of returns with itemized deductions: 910,910
- Average AGI: $100,786
- Average tax credits: $909
- Percent of returns using standard deduction: 89.9%
- Total tax returns: 11,130,320
- Oklahoma
- Average itemized deduction amount: $51,668
- Percent of returns using itemized deduction: 6.6%
- Number of returns with itemized deductions: 112,620
- Average AGI: $73,200
- Average tax credits: $770
- Percent of returns using standard deduction: 91.4%
- Total tax returns: 1,713,370
- New York
- Average itemized deduction amount: $47,787
- Percent of returns using itemized deduction: 10.3%
- Number of returns with itemized deductions: 1,003,810
- Average AGI: $104,319
- Average tax credits: $950
- Percent of returns using standard deduction: 88.0%
- Total tax returns: 9,767,160
- Texas
- Average itemized deduction amount: $47,195
- Percent of returns using itemized deduction: 7.8%
- Number of returns with itemized deductions: 1,067,270
- Average AGI: $91,790
- Average tax credits: $961
- Percent of returns using standard deduction: 90.4%
- Total tax returns: 13,641,000
- Utah
- Average itemized deduction amount: $46,387
- Percent of returns using itemized deduction: 13.8%
- Number of returns with itemized deductions: 208,870
- Average AGI: $93,265
- Average tax credits: $1,159
- Percent of returns using standard deduction: 84.8%
- Total tax returns: 1,514,460
Top 10 States With the Most Households Itemizing Their Deductions
States are ranked based on the percentage of total tax returns that opted to itemize.
- Maryland
- Percent of returns using itemized deduction: 20.0%
- Average itemized deduction amount: $32,408
- Number of returns with itemized deductions: 618,300
- Average AGI: $95,424
- Average tax credits: $799
- Percent of returns using standard deduction: 78.7%
- Total tax returns: 3,095,140
- California
- Percent of returns using itemized deduction: 15.4%
- Average itemized deduction amount: $42,541
- Number of returns with itemized deductions: 2,845,910
- Average AGI: $107,477
- Average tax credits: $985
- Percent of returns using standard deduction: 82.8%
- Total tax returns: 18,487,690
- Utah
- Percent of returns using itemized deduction: 13.8%
- Average itemized deduction amount: $46,387
- Number of returns with itemized deductions: 208,870
- Average AGI: $93,265
- Average tax credits: $1,159
- Percent of returns using standard deduction: 84.8%
- Total tax returns: 1,514,460
- Virginia
- Percent of returns using itemized deduction: 13.5%
- Average itemized deduction amount: $38,565
- Number of returns with itemized deductions: 563,310
- Average AGI: $98,703
- Average tax credits: $846
- Percent of returns using standard deduction: 85.2%
- Total tax returns: 4,160,340
- New Jersey
- Percent of returns using itemized deduction: 13.5%
- Average itemized deduction amount: $39,250
- Number of returns with itemized deductions: 625,150
- Average AGI: $108,659
- Average tax credits: $881
- Percent of returns using standard deduction: 85.2%
- Total tax returns: 4,638,510
- Oregon
- Percent of returns using itemized deduction: 12.5%
- Average itemized deduction amount: $33,287
- Number of returns with itemized deductions: 254,120
- Average AGI: $85,829
- Average tax credits: $753
- Percent of returns using standard deduction: 85.9%
- Total tax returns: 2,030,990
- Massachusetts
- Percent of returns using itemized deduction: 12.2%
- Average itemized deduction amount: $40,260
- Number of returns with itemized deductions: 435,060
- Average AGI: $118,339
- Average tax credits: $897
- Percent of returns using standard deduction: 86.6%
- Total tax returns: 3,567,790
- Hawaii
- Percent of returns using itemized deduction: 11.8%
- Average itemized deduction amount: $35,816
- Number of returns with itemized deductions: 81,680
- Average AGI: $83,594
- Average tax credits: $858
- Percent of returns using standard deduction: 86.0%
- Total tax returns: 689,960
- Washington
- Percent of returns using itemized deduction: 11.7%
- Average itemized deduction amount: $45,141
- Number of returns with itemized deductions: 438,770
- Average AGI: $110,824
- Average tax credits: $911
- Percent of returns using standard deduction: 86.9%
- Total tax returns: 3,757,410
- Georgia
- Percent of returns using itemized deduction: 11.6%
- Average itemized deduction amount: $37,000
- Number of returns with itemized deductions: 572,340
- Average AGI: $82,252
- Average tax credits: $738
- Percent of returns using standard deduction: 86.7%
- Total tax returns: 4,932,040
Data and Methodology
This study examines the most recent tax return data from the IRS (2022). States were ranked by the size of itemized deductions averaged across tax returns. The percentage of returns electing to itemize their deductions was also examined.
Questions about this study? Contact us at press@smartasset.com
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