SALT Deduction Calculator 2026
The SALT cap jumped from $10,000 to $40,000. If you live in a high-tax state, this could save you thousands. See your numbers in seconds.
From W-2 box 17 plus any state estimated payments. Use $0 if claiming sales tax instead.
Real estate taxes on your home. Check your annual tax bill or escrow statement.
What is the SALT deduction?
SALT stands for state and local taxes. The SALT deduction lets you subtract certain state and local taxes you already paid from your federal taxable income when you itemize. It includes state income taxes or sales taxes (you pick one, not both) plus property taxes. If you live in a state with high income taxes or expensive property, this deduction can be worth thousands of dollars.
What changed in 2025
From 2018 through 2024, the SALT deduction was capped at $10,000. That hurt homeowners in states like New York, New Jersey, California, Connecticut, and Illinois who often pay $20,000 to $40,000 in combined state and property taxes. The One Big Beautiful Bill Act raised the cap to $40,000 starting in 2025. For 2026 the cap is $40,400 with a 1% annual increase through 2029. After 2029 it drops back to $10,000 unless Congress acts again.
The income phase out
The $40,000 cap shrinks for high earners. It drops by 30 cents for every dollar of income above $500,000 (or $250,000 for married filing separately). The cap bottoms out at $10,000, which is where it was before. At $600,000 of income you are back to the old cap. For 2026 these thresholds increase by 1% to $505,000.
You must itemize
This is the key difference between SALT and the new deductions for tips, overtime, car loans, and seniors. Those deductions work on top of the standard deduction using Schedule 1-A. The SALT deduction requires you to itemize on Schedule A instead of taking the standard deduction. It only helps if your total itemized deductions, including SALT, mortgage interest, and charitable contributions, add up to more than the standard deduction of $16,100 single or $32,200 married for 2026.
Who benefits most
Homeowners in high-tax states with incomes under $500,000. If you pay $15,000 in state income tax and $10,000 in property taxes, your SALT alone is $25,000. Under the old $10,000 cap you lost $15,000 of deductions. Under the new $40,000 cap you deduct the full $25,000. At a 24% bracket that is $3,600 in additional tax savings.
SALT cap by year
| Tax year | SALT cap | Phase out starts |
|---|---|---|
| 2024 and earlier | $10,000 | No phase out |
| 2025 | $40,000 | $500,000 MAGI |
| 2026 | $40,400 | $505,000 MAGI |
| 2027 | $40,804 | $510,050 MAGI |
| 2028 | $41,212 | $515,151 MAGI |
| 2029 | $41,624 | $520,302 MAGI |
| 2030 and later | $10,000 | No phase out |
Frequently asked questions
What is the SALT deduction cap for 2026?
$40,400 for single, married filing jointly, and head of household filers. $20,200 for married filing separately. The cap phases down for incomes above $505,000.
Can I claim SALT and the standard deduction?
No. SALT is an itemized deduction on Schedule A. You cannot claim both itemized deductions and the standard deduction. However, the new deductions for tips, overtime, car loans, and seniors are separate and go on Schedule 1-A, which works with either itemizing or the standard deduction.
Does SALT include property taxes?
Yes. SALT includes state and local income taxes or sales taxes (your choice) plus real estate property taxes and personal property taxes. All of these count toward the $40,000 cap combined.
When does the SALT cap go back to $10,000?
In 2030 the cap reverts to $10,000 unless Congress extends it. The increased cap applies for tax years 2025 through 2029.