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.
Written by Wanyu T | Last reviewed: May 8, 2026
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 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.