In some situations, taxpayers may benefit from using the standard deduction on their federal return while still itemizing deductions on their state return. This strategy can maximize tax savings, especially in states that allow more generous deductions or have decoupled from federal tax law.
✅ Short Answer: Yes, It’s Often Allowed
Most states permit you to itemize deductions on your state return even if you took the standard deduction on your federal return. However, the exact rules vary by state. Some states require consistency between federal and state filings, while others allow mixed approaches.
📌 Why Consider This Strategy?
- Federal Standard Deduction (2025): $15,750 for single, $31,500 for joint filers
- State Itemized Deductions: Some states offer additional deductions that don’t exist federally, such as:
- State income tax deduction (even if SALT cap applies federally)
- Miscellaneous deductions (e.g., union dues, investment fees in CA, NY)
- Higher deduction for mortgage interest or property taxes
- Potential result: More favorable state tax outcome by itemizing, even if you claim the federal standard deduction
🗺️ State-by-State Examples
| State | Can You Itemize on State if You Take Federal Standard? | Notes |
|---|---|---|
| California | Yes | CA requires separate calculations; allows itemizing regardless of federal election |
| New York | Yes | State itemizing allowed even with federal standard deduction |
| Illinois | No | Flat tax system; no state-level itemizing allowed at all |
| Massachusetts | N/A | Uses its own deduction system—not tied to federal itemizing |
| Virginia | No | Must itemize federally to itemize on VA return |
📑 Documentation and Filing Tips
- Even if you don’t itemize on your federal return, keep records of deductions you may claim on your state return
- Some tax software supports mixed deduction strategies—double-check your settings for both returns
- Consult your state’s instructions for the most recent conformity rules and filing procedures
- Always check if your state requires Schedule A (federal) to be attached even when not used on the federal return
📊 Example Scenario
Emily lives in California. Her federal deductions add up to $21,000, but since that’s lower than her joint federal standard deduction of $31,500, she uses the standard deduction federally. However, her deductible property taxes, mortgage interest, and charitable giving total more than California’s lower state standard deduction of $11,080 (for married filing jointly). She itemizes on her CA return to reduce her state taxable income.
🔍 When Mixed Deduction Filing Makes Sense
- You live in a high-tax or decoupled state (e.g., CA, NY)
- You don’t have enough federal deductions to exceed the standard deduction
- Your state standard deduction is low or non-existent
- Your state allows miscellaneous or uncapped SALT deductions
✅ Summary
You can itemize on your state tax return even if you take the standard deduction federally—in many states. This approach is especially useful for taxpayers in states with lower standard deductions, different deduction rules, or those that don’t fully conform to the federal tax code. Understanding your state’s rules allows you to optimize both your federal and state tax outcomes.
Need help evaluating whether this strategy works for your situation? Share your state and deductions—we’ll walk through the numbers together.
