What is a personal exemption and when to claim one

Editor’s Note: Personal and dependent exemptions no longer apply to the U.S. tax code. However, you can find historical information about exemptions in this article—plus some ways to lower your tax bill today through credits and deductions. 

Whether you’re new to taxes or not, there may be many unfamiliar tax terms when filing your return. One tax concept you may have heard of in the past is the personal exemption.  

This feature of the tax code was suspended temporarily with The Tax Cuts and Jobs Act (TCJA) between tax years 2018 to 2025 and was eliminated completely with the 2025 One Big Beautiful Bill Act (OBBBA).

If you want a refresh on the previous tax law, you’ll find that below.  

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Personal exemption definition 

Generally, a personal exemption reduces the taxable income on a return.  

You can claim a personal exemption for yourself unless someone else can claim you as a dependent. Note that’s if they can claim you, not whether they actually do. If you qualify as someone else’s dependent, you can’t claim the personal exemption even if they don’t actually claim you on their return. 

Additionally, in order to claim a personal exemption, you will have to file a tax return. If your gross income is over the filing threshold and no one can claim you as a dependent, you can claim a personal exemption for yourself when you file your return. 

You can also claim an exemption for your spouse if you file a joint return. However, if you both are nonresident aliens (other than a resident of Canada or Mexico, or certain residents of India or South Korea), you may only claim one personal exemption on the tax return. These restrictions don’t apply if you are a nonresident alien married to a U.S. citizen or if you are a resident alien who has chosen to be treated as a resident of the United States. 

If you file a separate return you can claim an exemption for your spouse only if your spouse had no gross income, is not filing his or her own return and was not the dependent of another taxpayer (even if the spouse is not actually claimed by another taxpayer). If your spouse meets these rules, you can claim an exemption for your spouse on a separate return even if he or she is a nonresident alien, as long as they have a tax identification number. 

Note that if you have any dependents, you can generally claim a dependent exemption for them if they meet the qualifying child or qualifying relative test. 

Note: Many states still provide personal and dependent exemptions. Learn more about filing state taxes.

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Other ways to reduce your tax bill today  

While personal and dependent deductions can no longer be applied to your taxes, you can reduce your tax bill in other ways. For example, taxpayers can benefit from a higher standard deduction, credits like the Child Tax Credit, and other common tax deductions.  

Get help filing taxes 

Need assistance claiming credits or taking deductions? Whether you choose to file with a tax pro or file with H&R Block Online, you can rest assured that we’ll get you the biggest refund possible.