Each state sets its own rules for standard deductions and itemized deductions on state returns. Many states “conform” to the federal standard deduction by default, while others set different amounts or limits. Here’s a look at key states like California, New York, Illinois, and notable others.
📌 States That Conform to the Federal Standard Deduction
- California: All filing statuses can claim the standard deduction, but CA’s deduction is significantly lower than the federal amount — for example, 2024 figures were $5,540 (single/MFS) and $11,080 (all others). CA does not automatically align with federal standard deduction amounts. :contentReference[oaicite:1]{index=1}
- New York: Generally conforms to federal deduction structures unless specific exclusions apply—itemizers mirror federal rules. :contentReference[oaicite:2]{index=2}
- Illinois: Has a flat-income tax system and typically allows itemized deductions for state tax only when tied to state-specific rules—it generally follows federal approach for itemized deductions, though state deduction amounts may differ. :contentReference[oaicite:3]{index=3}
- Other conforming states: Most states—including Texas, Florida (no income tax), Indiana, Ohio—refer to or mirror the federal standard/itemized deduction rules, subject to their own caps and restrictions. :contentReference[oaicite:4]{index=4}
📊 States with Their Own Standard Deduction or Limits
- California: Offers its own lower standard deduction ($5,540 single / $11,080 for joint or head of household in 2024) regardless of federal numbers. :contentReference[oaicite:5]{index=5}
- Minnesota: Adjusts its state-level standard deduction based on AGI, phasing out at higher income levels—differs significantly from federal rules. :contentReference[oaicite:6]{index=6}
- New Mexico, Ohio, etc. Some allow personal exemptions or nonrefundable credits instead of a direct standard deduction mirroring federal rules. :contentReference[oaicite:7]{index=7}
⚖️ Impact for High-Income Earners in High-Tax States
If you live in states like CA, NY, or IL and itemize for federal tax purposes, the state SALT deduction cap — even if federally higher under 2025 reforms — may be limited by your state’s own rules. Most states that follow federal itemizing rules allow SALT deductions up to the federal cap, but if your state has its own standard or deduction limits, your state deduction may be smaller. :contentReference[oaicite:8]{index=8}
✅ Summary Table
| State | State Standard Deduction? | Conforms to Federal? |
|---|---|---|
| California | Yes — lower than federal | No (separate deduction) |
| New York | Generally follows federal itemizing | Yes |
| Illinois | Follows federal deduction/itemizing rules | Yes |
| Minnesota | Yes — state-specific caps & phase‑outs | No |
| Majority of states | Conform or roughly match federal | Yes |
🔍 What You Should Do
- Check your specific state’s tax form instructions for the 2025 tax year to compare state vs. federal deductions.
- If your state has a lower standard deduction than the federal amount, itemizing may be more beneficial both federally and at the state level—assuming your state permits itemizing.
- Consult state-specific resources or a tax professional if you live in a state with nonconformity—such as California or Minnesota.
