SALT deduction calculator
The cap on deducting state and local taxes rose from $10,000 to $40,400 for 2026. Enter what you paid to see how much you can deduct and whether itemizing now beats the standard deduction.
- $40,400 cap for 2026, $40,000 for 2025.
- State income or sales tax, plus property tax, together.
- Shrinks above $505,000 of income, never below $10,000.
How the SALT deduction works
If you itemize, you can deduct state and local taxes you paid during the year: income tax (or sales tax instead), plus property taxes. From 2018 through 2024 the total was capped at $10,000. The 2025 tax law raised the cap to $40,000 for 2025 and $40,400 for 2026, then 1% more each year through 2029. In 2030 it goes back to $10,000.
The higher cap only helps if you itemize, so the calculator compares your itemized total with the standard deduction and shows the federal income tax you save. For incomes over $505,000 (2026) the cap shrinks by 30 cents for each dollar above that, down to $10,000. From 2026, people in the 37% bracket also get their itemized deductions trimmed by 2/37; the calculator includes that.
Source: Internal Revenue Code §164(b)(6) and (7), as amended by Public Law 119-21 (2025); IRS Rev. Proc. 2025-32 (2026 standard deduction and brackets).
| What counts | State and local income tax or general sales tax (not both), real estate taxes, and personal property taxes based on value, such as some car registration fees. |
|---|---|
| Doesn't count | Foreign property taxes, taxes paid for a business (those go on the business schedules), and federal taxes. |
| Cap | $40,000 for 2025, $40,400 for 2026, then +1% a year through 2029; $10,000 from 2030. Half for married filing separately. |
| High incomes | Reduced by 30% of modified adjusted gross income over $500,000 (2025) or $505,000 (2026), half that for married filing separately; never below $10,000 ($5,000). |
| You must itemize | Only worth it when all your itemized deductions beat the standard deduction. |
Questions people ask
What is the SALT deduction cap for 2026?
$40,400, or $20,200 if married filing separately. It was $40,000 for 2025, rises 1% a year through 2029 and drops back to $10,000 in 2030. It covers state and local income or sales taxes plus property taxes together.
Who gets less than the full SALT cap?
People with modified adjusted gross income over $505,000 in 2026 ($500,000 in 2025), half those amounts if married filing separately. The cap shrinks by 30% of the income above that, but never below $10,000 ($5,000 married filing separately).
Do I have to itemize to get the SALT deduction?
Yes. State and local taxes count only if you itemize on Schedule A, which helps only when all your itemized deductions add up to more than the standard deduction: $16,100 single, $32,200 joint and $24,150 head of household for 2026.
Can I deduct both state income tax and sales tax?
No, one or the other. Most people in states with an income tax deduct that; in states without one, deduct sales tax. Property tax on your home is added on top, all within the cap.
Does the higher SALT cap help me?
Only if your state and local taxes were above $10,000 ($5,000 married filing separately) and itemizing beats the standard deduction. The calculator shows how much more you save than under the old $10,000 cap.