SALT Deduction Cap Calculator
How much state and local tax can you actually deduct for 2026 or 2025 under the new $40,000+ cap, after the income phase-down? And does itemizing still beat the standard deduction? Runs entirely in your browser; nothing you type is sent or saved.
How the 2026 SALT cap works
The cap on deducting state and local income (or sales) tax plus property tax rose from $10,000 to $40,000 for 2025 and $40,400 for 2026 ($20,000 / $20,200 if married filing separately). If your MAGI is above $500,000 for 2025 / $505,000 for 2026 ($250,000 / $252,500 married filing separately), the cap shrinks by 30 cents for every dollar over, but never below $10,000 ($5,000 married filing separately).
This calculator follows the IRS Schedule A "State and Local Tax Deduction Worksheet": start with the full cap, subtract 30% of MAGI over the threshold, keep the larger of that or $10,000, and if married filing separately take half. For 2026 a single or joint filer reaches the $10,000 floor at MAGI of about $606,333.
How to use it
- Pick the tax year and filing status.
- Enter your MAGI and the state/local taxes you paid in that year (income or sales tax, plus property taxes).
- Optionally add your other itemized deductions to see if itemizing beats the standard deduction.
FAQ
Do I benefit if I take the standard deduction?
No. SALT only counts if you itemize on Schedule A, which is worth it only when your total itemized deductions exceed your standard deduction ($16,100 single, $32,200 joint, $24,150 head of household for 2026).
Is the threshold different for married couples filing jointly?
No. The cap and the $505,000 threshold (2026) are the same for single, head of household and joint filers. Only married filing separately is halved.
Can I deduct both state income tax and sales tax?
No. You choose one, plus property taxes. Taxes paid in a trade or business (Schedule C/E) are not part of this cap.
What happens in 2030?
Under current law the cap returns to $10,000 ($5,000 married filing separately) starting in 2030, with no income phase-down.
Is this calculator affiliated with the IRS?
No. It is an independent educational estimate, not tax advice. It never asks for your name, Social Security number or bank details, and it does not promise any refund. Check your figures with IRS instructions or a tax professional.
Sources
- IRS: Instructions for Schedule A (2025), line 5e worksheet
- IRS: 2026 SALT limit ($40,400 / $505,000)
- IRS: 2025 and 2026 standard deduction amounts