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SALT Deduction Calculator

The 2025 tax law raised the cap on the state and local tax (SALT) deduction from $10,000 to $40,000, with small increases through 2029 and a phase-down for high incomes. Enter your taxes, income and tax year to see how much you can deduct and how much the cap takes away.

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Withheld from pay plus payments made during the year. Or general sales tax instead, not both.

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Yearly taxes based on value, like the value part of a car registration.

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For most people your AGI (Form 1040, line 11b). Lowers the cap above $505,000.

Your SALT deduction$40,400$3,600 of the taxes you paid is over the cap and can't be deducted.
  • Deductible$40,400
  • Lost to the cap$3,600
State and local taxes paid (Schedule A, line 5d)
$44,000
Cap for 2026
$40,400
Income phase-down
$0
Your cap
$40,400
SALT deduction (Schedule A, line 5e)
$40,400
Lost to the cap
$3,600

This only helps if you itemize. If your SALT deduction plus mortgage interest, gifts to charity and other itemized deductions come to less than your standard deduction, the standard deduction is worth more.

The SALT cap by year

The cap covers state and local income tax (or general sales tax instead), real estate taxes and personal property taxes together, on Schedule A, lines 5a through 5c. It is per return, and married people filing separately get half each.

  • 2025: $40,000 ($20,000 married filing separately), phase-down above $500,000 of income ($250,000).
  • 2026: $40,400 ($20,200), phase-down above $505,000 ($252,500).
  • 2027 to 2029: the cap and the income line each go up 1% a year, so about $40,804, $41,212 and $41,624, with the phase-down starting near $510,050, $515,151 and $520,302. These come from the law itself; the IRS has not published them yet.
  • 2030 and later: back to $10,000 ($5,000 married filing separately), with no phase-down.

The income phase-down

Above the income line, the cap drops by 30% of your modified adjusted gross income over it, but never below $10,000. For married people filing separately the income line is half, and the reduced cap is then halved, so it never goes below $5,000.

A married couple filing jointly for 2025 with $550,000 of income and $45,000 of state and local taxes is $50,000 over the line. 30% of $50,000 is $15,000, so their cap is $40,000 minus $15,000, or $25,000. They deduct $25,000 and lose $20,000 to the cap. At $600,000 of income or more, their cap is $10,000.

It only helps if you itemize

The SALT deduction is an itemized deduction on Schedule A. It only lowers your tax if your itemized deductions in total (SALT, mortgage interest, gifts to charity and the rest) are more than your standard deduction.

The standard deduction for 2025 is $15,750 for single filers, $23,625 for heads of household and $31,500 for married couples filing jointly. For 2026 it is $16,100, $24,150 and $32,200.

Questions

Is the $40,000 SALT cap per person or per return?

Per return. A married couple filing jointly shares one $40,000 cap for 2025, and each spouse filing separately gets $20,000.

Can I deduct both state income tax and sales tax?

No. On Schedule A, line 5a you choose either state and local income taxes or general sales taxes, not both. Property taxes are added on top.

What income counts for the phase-down?

Your modified adjusted gross income: your AGI from Form 1040, line 11b, plus any foreign earned income or housing amount, Puerto Rico income or American Samoa income you excluded.

Does the higher cap help if I take the standard deduction?

No. The SALT deduction is only for people who itemize on Schedule A.

When does the SALT cap go back to $10,000?

Starting with tax year 2030, the cap returns to $10,000 ($5,000 married filing separately) and the income phase-down no longer applies.

What is the SALT cap for 2026?

$40,400 ($20,200 married filing separately), reduced by 30% of income over $505,000 ($252,500), but not below $10,000 ($5,000).

Sources

Updated November 3, 2026. Estimates only, not tax or financial advice.

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