Single vs Head of Household: Which Saves More Tax?
Unmarried with kids? Stop filing as “Single.” The “Head of Household” status offers a massive standard deduction and wider tax brackets, potentially saving you thousands.
Standard Deduction Battle: 2026
The Standard Deduction is the amount of income the IRS lets you earn tax-free. HOH gets a ~50% bonus over Single.
| Filing Status | 2026 Deduction (Est) | Tax-Free Income |
|---|---|---|
| Single | $15,500 | Low |
| Head of Household | $23,250 | High |
| Married Jointly | $31,000 | Highest |
| Scenario | Best Status |
|---|---|
| Single Parent | Head of Household |
| Living Alone | Single |
The 3-Step Qualification Test
You cannot just “choose” this status. You must meet ALL three rules strictly.
Rule 1: Unmarried
You must be single, divorced, or “considered unmarried” (lived apart from spouse for the last 6 months of the year) on Dec 31.
Rule 2: Qualifying Person
You must have a child or relative who lived with you for more than half the year.
Exception: Dependent parents do not have to live with you, provided you pay >50% of their nursing home/rent costs.
Rule 3: The 50% Cost Test
You paid more than half the cost of keeping up the home.
Includes: Rent, Mortgage, Utilities, Property Tax, Food.
Excludes: Clothing, Education, Vacation, Medical.
Pro Tip: Divorced Parents Strategy
Bonus Benefit: Wider Tax Brackets
HOH is not just about the deduction. It also lets you stay in the lower tax brackets (10%, 12%) for longer.
- Single: You hit the 22% tax rate once you earn over ~$48,000 (Taxable).
- HOH: You don’t hit the 22% rate until you earn over ~$65,000 (Taxable).
This means more of your income is taxed at the cheaper 12% rate.