SALT Deduction Calculator
Estimate your allowable state and local tax deduction under the 2026 OBBB $40,400 cap. Shows phase-down for high earners and compares itemizing vs. the standard deduction.
The SALT (state and local tax) deduction allows you to deduct qualifying taxes paid to state and local governments from your federal taxable income — but only when you itemize and only up to the cap. For 2026, the SALT cap is $40,400 for non-MFS filers, per OBBB §70120. The cap was $10,000 under the original TCJA (2018–2025) before OBBB raised it.
Formula: eligible SALT = property taxes + max(state income tax, state sales tax). Allowable SALT = min(eligible SALT, cap). A phase-down of 30% of MAGI over $505,000 (2026, indexed 1%/yr from the $500,000 2025 threshold per OBBB §70120) reduces the cap, with a $10,000 floor.
Worked example: single filer, $8,000 property tax + $12,000 state income tax = $20,000 eligible SALT. MAGI $120,000 — below the $505,000 phase-down threshold. Allowable SALT = min($20,000, $40,400) = $20,000. Worth itemizing only if total itemized deductions exceed $16,100 standard deduction.
How it's calculated
How to use this calculator
- Select filing status and tax year.
- Enter property taxes and state income or sales tax paid.
- Enter your MAGI to check the phase-down.
- Add other itemized deductions to see if itemizing beats the standard deduction.
Formula and assumptions
eligibleSALT = propertyTaxes + max(stateIncomeTax, salesTax) cap (2026) = $40,400 non-MFS / $20,200 MFS phaseDown = 0.30 * max(0, MAGI - threshold) allowableCap = max(floor, cap - phaseDown) allowableSALT = min(eligibleSALT, allowableCap) threshold = $505,000 non-MFS / $252,500 MFS (2026, 1% indexed from 2025)
- 2026 cap
- $40,400 non-MFS (OBBB §70120)
- Phase-down rate
- 30% per dollar over threshold
- Floor
- $10,000 non-MFS / $5,000 MFS
- Sunset
- Cap reverts to $10,000 in 2030
Worked example
Single filer, $8,000 property tax, $12,000 state income tax, $120,000 MAGI
Limitations
- SALT only helps if you itemize (total itemized must exceed standard deduction).
- Standard deduction comparison uses 2026 figures for all years; accuracy degrades slightly for 2027+ projections.
- PTET pass-through entity tax workaround is not modeled here.
- Educational estimate only — not professional tax advice.
Frequently asked questions
The 2026 SALT cap is $40,400 for most filers. You can deduct property taxes plus the larger of state income or sales taxes, up to that cap. A phase-down of 30% applies above $500K MAGI, with a $10,000 floor.
Recent updates
- May 2026Schema hardened: money inputs bounded to $1B with .finite() guards; cap schedule rounding fixed to prevent sub-cent float leak.
- Feb 20262026 SALT cap updated to $40,400 per OBBB §70120; phase-down threshold indexed to $505,000.
- Jul 2025Calculator launched for OBBB §70120 SALT cap expansion from $10,000 to $40,000 (2025).
- May 2025Initial model built on OBBB bill text; statutory caps updated on enactment.