The standard deduction reduces your taxable income. In 2019 the standard deduction is $12,200 for single filers and married filers filing separately, $24,400 for married filers filing jointly and $18,350 for heads of household. But if your itemized deductions exceed those levels you can reduce your income by the amount of your itemized deductions. Those deductions include state and local taxes and property tax (capped at $10,000) as well as charitable contributions and mortgage interest payments. Medical expenses greater than 7.5% of AGI are also included.
