About the SALT Deduction Calculator
This SALT deduction calculator works out how much of the state and local taxes you pay — income or sales tax plus property taxes — you can deduct on your federal return. It applies the higher SALT cap introduced by the One Big Beautiful Bill Act, including the phase-down for high earners, and tells you whether itemizing now beats the standard deduction.
It is aimed at homeowners in high-tax states such as California, New York and New Jersey, people who stopped itemizing when the cap was $10,000, and higher earners near the $500,000 phase-down. Seeing the deductible amount and the tax it saves helps with withholding, estimated payments and year-end planning such as prepaying property tax.
Rules: the cap is $40,000 for 2025 and $40,400 for 2026 (half for married filing separately). It is reduced by 30% of modified AGI above $500,000 in 2025 and $505,000 in 2026, but never below $10,000 ($5,000 separate). The higher cap rises 1% a year through 2029 and reverts to $10,000 in 2030. You deduct either state income tax or general sales tax, not both.
With the default inputs, the deductible salt is $17,500.00. Change any value above to recalculate instantly.
How to use the salt deduction calculator
- 1Choose the tax year and your filing status.
- 2Enter your modified adjusted gross income.
- 3Choose income or sales tax and enter the amount you paid.
- 4Add real estate and personal property taxes.
- 5Enter your other itemized deductions to see whether itemizing pays off.
Formula and method
State and local taxes paid are the larger of state and local income tax or general sales tax, plus real estate taxes and personal property taxes based on value. The base cap is $40,000 for 2025 and $40,400 for 2026 ($20,000 / $20,200 for married filing separately).
For modified AGI above $500,000 (2025) or $505,000 (2026) — halved for separate filers — the cap is reduced by 30% of the excess, but not below $10,000 ($5,000 separate). Your deduction is the smaller of taxes paid and the cap. It only helps if your total itemized deductions exceed the standard deduction; the tax saved is the amount by which itemizing beats the better of the standard deduction and your other deductions alone, times your marginal rate.
- BaseCap
- $40,000 (2025) or $40,400 (2026); half if married filing separately
- Threshold
- $500,000 (2025) or $505,000 (2026); half if separate
- Floor
- $10,000, or $5,000 if married filing separately
Worked examples
Single homeowner with $17,500 of SALT
Under the $40,400 cap the full $17,500 is deductible. Adding $15,000 of other deductions gives $32,500 — $16,400 more than the $16,100 standard deduction, worth about $3,936 at 24%.
Married couple in the phase-down
MAGI is $95,000 over $505,000, so the cap falls by 30% × $95,000 = $28,500 to $11,900. Only $11,900 of $65,000 in state and local taxes is deductible. Itemized deductions of $41,900 beat the $32,200 standard deduction by $9,700, worth $3,395 at 35%.
2025 high earner hits the $10,000 floor
The phase-down would cut the $40,000 cap by 30% × $200,000 = $60,000, but it cannot go below $10,000. With no other deductions, $10,000 is less than the $15,750 standard deduction, so itemizing does not help.
Married filing separately
Separate filers get half the 2026 cap, $20,200. MAGI of $200,000 is under the $252,500 separate threshold, so $20,200 of $30,000 is deductible.
Frequently asked questions
What is the SALT cap for 2026?+
The SALT deduction cap is $40,400 for 2026 ($20,200 for married filing separately), up from $40,000 in 2025. It rises 1% a year through 2029 and is scheduled to fall back to $10,000 in 2030.
How does the SALT cap phase-out work?+
For 2026 the cap is reduced by 30% of modified AGI above $505,000 ($252,500 separate). It never drops below $10,000, which is reached at about $606,333 of MAGI for most filers.
Which taxes count toward the SALT deduction?+
State and local income taxes (or general sales taxes instead), real estate taxes on property you own, and personal property taxes based on value such as some car registration fees. Foreign real property taxes do not count.
Do I need to itemize to get the SALT deduction?+
Yes. SALT is an itemized deduction on Schedule A, so it only helps when your total itemized deductions — SALT, mortgage interest, charity and others — exceed the standard deduction.
Can a business owner get around the SALT cap?+
Many states offer a pass-through entity tax (PTET) election that lets partnerships and S corporations pay state tax at the entity level, where it is deductible as a business expense rather than limited by the cap.
Tax results are estimates based on published rules and simplified assumptions. They are not tax advice — check official guidance or a tax professional for your situation.