How to use the SALT deduction calculator
- 1 Enter the state income tax (or sales tax) you paid.
- 2 Enter your property tax.
- 3 Enter your modified AGI and choose your filing status.
- 4 Add other itemized deductions such as mortgage interest, then compare.
Worked example
A married couple with $250,000 of income, $18,000 of state income tax, $12,000 of property tax and $15,000 of other deductions. Their $30,000 of SALT is under the $40,400 cap, so all of it is deductible. Itemized deductions are $45,000, beating the $32,200 standard deduction, and they save $2,944 compared with the old $10,000 cap. At $550,000 of income their cap would fall to $26,900.
Using the higher SALT cap
- Add up property and state income tax from your bills and W-2.
- Compare with sales tax if you live in a state with no income tax.
- Check whether itemizing now wins over the standard deduction.
- Watch income near $505,000, where the cap shrinks.
Compare every deduction with the Standard vs Itemized Deduction Calculator, work out mortgage interest with the Mortgage Calculator, and see your whole bill with the Federal Income Tax Calculator.
Features
2026 cap and phase-down
$40,400, reduced by 30% over $505,000, floor $10,000.
Itemize or not
Compares itemized deductions with the standard deduction.
Gain over the old cap
Shows the tax saved compared with the $10,000 limit.
When to use it
High-tax states
See the gain for homeowners in New York, California, New Jersey and Illinois. Work out your mortgage with the Mortgage Calculator.
Deciding to itemize
Compare every deduction with the Standard vs Itemized Calculator.
High earners
See where the phase-down starts to bite. Estimate your whole bill with the Federal Income Tax Calculator.
Buying a home
Property tax and mortgage interest may now make itemizing worth it. Check affordability with the Home Affordability Calculator.
Related Tax tasks
Frequently asked questions
What is the SALT cap for 2026?
$40,400 for single, joint and head of household filers, and $20,200 for married filing separately. It was $40,000 for 2025 and rises 1% a year through 2029.
How does the SALT phase-down work?
If modified AGI is over $505,000 in 2026 ($252,500 separate), the cap is reduced by 30% of the excess. It never falls below $10,000 ($5,000 separate), which is reached at about $606,333.
Which taxes count as SALT?
State and local income taxes or general sales taxes (you choose one), plus real estate and personal property taxes. Foreign taxes and fees for services do not count.
Do I have to itemize to get it?
Yes. SALT is an itemized deduction on Schedule A, so it only helps if your itemized deductions are more than the standard deduction of $32,200 for joint filers in 2026.
When does the higher cap end?
After 2029. From 2030 the cap goes back to $10,000 unless Congress changes it.
Is the cap per person?
No. It is per return. Married couples filing jointly share one $40,400 cap.
What about rental property taxes?
Property taxes on rental or business property are deducted against that income and are not limited by the SALT cap.
Do I need to change my withholding?
If you will itemize because of the higher cap, you can lower withholding with a new W-4 to get the benefit through the year.
What is the SALT torpedo?
Between about $505,000 and $606,000 of income, each extra dollar reduces your cap by 30 cents, which raises your effective marginal rate.
Results are estimates based on the official rates linked above. Confirm important figures with the issuing authority or a qualified adviser before you act on them.
Built and reviewed by Hamza Farooq, founder and lead developer
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