SALT Deduction Cap Calculator
Calculate your capped state and local tax (SALT) deduction for 2026 under the One Big Beautiful Bill Act's $40,400 cap ($20,200 married filing separately), including the high-income phase-out and itemize-vs-standard-deduction tax savings.
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Better Option for You
Take the Standard Deduction -- your $29,500 in itemized deductions doesn't beat the $32,200 standard deduction.
Estimated • Based on your inputs
Your Deductible SALT Amount
$17,500.00
Extra Federal Tax Savings vs. Standard Deduction
-$594.00
Detailed Breakdown
Disclaimer: This calculator provides estimates for informational purposes only. Results should not be considered financial, tax, or legal advice. Consult a qualified professional for your specific situation.
How This Calculator Works
Calculation methodology and assumptions
The One Big Beautiful Bill Act (OBBBA, signed July 4, 2025) raised the state and local tax (SALT) itemized deduction cap from a flat $10,000 to $40,000 for 2025, growing 1% per year through 2029 -- $40,400 for 2026 ($20,200 if married filing separately) -- before reverting to a flat $10,000 ($5,000 married filing separately) in 2030 unless Congress acts again. This calculator first adds your entered state/local income (or sales) tax and property tax together to get your total SALT paid. If your Modified Adjusted Gross Income (MAGI) exceeds $505,000 ($252,500 if married filing separately), your $40,400/$20,200 cap is reduced 30 cents for every dollar of MAGI over that threshold, but never below the $10,000/$5,000 floor -- both figures confirmed directly from the IRS's own 2025 Schedule A (Form 1040) instructions. Your deductible SALT amount is the lesser of your total SALT paid or this applicable cap. Adding that to your other itemized deductions (mortgage interest, charitable giving, etc.) gives your total itemized deductions, which the calculator then compares against the 2026 standard deduction for your filing status to recommend whichever method produces lower estimated federal tax, and to show your net dollar tax savings from itemizing (which can be negative, meaning the standard deduction is actually better for you).
How to Use This "No Tax On..." Deduction Calculator Calculator
- 1
Enter your information
Input the required values. The calculator is pre-filled with your state's data where applicable — adjust to match your specific situation for accurate results.
- 2
Review default values
Check that the pre-filled state-specific data (tax rates, median values, etc.) matches your local situation. You can override any value to customize the calculation.
- 3
Analyze your results
Review the calculated outputs. Use the breakdown table to understand exactly how each factor contributes to the final result.
- 4
Compare across states
Use the related state calculators linked below to compare results across different states — useful for relocation planning and financial comparison.
Example Calculation
Here's a practical example using this state's data.
The calculator uses state-specific public data and documented estimates where available — including tax rates, median values, and cost benchmarks — to produce a personalized estimate for the inputs you provide.
Result: Results will vary based on your individual inputs. Use this calculator as a starting point, then adjust the values to test different scenarios. The methodology section below explains exactly how each result is calculated.
What Affects Your Results
State-Specific Inputs
Each state has unique rates, fee schedules, and regulatory requirements that can affect results. This page's methodology and source card identify which inputs are sourced, modeled, or user-adjustable.
Income Level
Many calculations are income-dependent due to progressive tax brackets, phase-outs, or income-based eligibility thresholds. Higher income doesn't always mean proportionally higher costs.
Local Variations
State averages may not reflect your specific city or county. Local taxes, fees, and market conditions can vary ±20% from state averages.
Annual Changes
Tax rates, fee schedules, and regulations change. Check the recorded source-review date and verify critical numbers with the relevant agency.
Tips & Best Practices
- Always verify pre-filled values against your actual data. State averages are a good starting point but your situation may differ significantly.
- Run multiple scenarios by adjusting key inputs to see how changes affect your results. This helps with planning and decision-making.
- Compare your results across states using the related calculators linked below — especially valuable if you're considering relocating or doing business in another state.
- Bookmark this page to recalculate periodically as rates change. Check the page source card and review date before relying on a pre-filled value.
- Consult a qualified professional for major financial decisions. These calculators provide estimates based on standard formulas — a CPA or financial advisor can factor in your complete financial picture.
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StateCalc Team
Editorial Team
The StateCalc team builds free financial calculators using data from official government sources including the IRS, U.S. Census Bureau, BLS, and state revenue departments. All formulas are validated by an automated test suite and cross-referenced against published data.
Our editorial standardsFrequently Asked Questions
What is the SALT deduction cap for 2026?
The SALT (state and local tax) deduction is capped at $40,400 for 2026 ($20,200 if married filing separately), up from a flat $10,000 under the original 2017 Tax Cuts and Jobs Act. The One Big Beautiful Bill Act set the cap at $40,000 for 2025, growing 1% per year through 2029, before it reverts to a flat $10,000 ($5,000 MFS) in 2030 unless Congress extends it again.
Does the higher SALT cap phase out for high earners?
Yes. If your Modified Adjusted Gross Income (MAGI) is above $505,000 ($252,500 if married filing separately) for 2026, your cap is reduced 30 cents for every dollar of MAGI over that threshold. It never drops below $10,000 ($5,000 if married filing separately), confirmed directly in the IRS's own Schedule A (Form 1040) instructions -- so even the highest earners keep at least the old TCJA-level deduction.
Is the SALT deduction cap different for married filing separately?
Yes, in three ways that all halve compared to other filing statuses: the base cap is $20,200 instead of $40,400, the phase-out starts at $252,500 of MAGI instead of $505,000, and the reversion floor is $5,000 instead of $10,000. All three are confirmed in the IRS Schedule A instructions' "What's New" section.
Can I deduct both state income tax and sales tax?
No -- you must elect one or the other, not both, for any given tax year. Most residents of states with an income tax choose to deduct income tax since it's typically larger; residents of the nine states without an income tax (or anyone with unusually large one-time purchases like a car or home renovation) may benefit more from electing the sales tax deduction, which the IRS provides published tables to estimate.
Should I itemize or take the standard deduction?
It depends on whether your total itemized deductions (capped SALT plus mortgage interest, charitable giving, and other itemizable expenses) exceed the 2026 standard deduction for your filing status. The SALT cap increase makes itemizing worthwhile for more upper-middle-income homeowners in high-tax states than under the old $10,000 cap, but most taxpayers nationwide still come out ahead taking the standard deduction. This calculator estimates your federal tax both ways so you can see your actual dollar savings, not just the deduction totals.
Will the SALT cap really revert to $10,000 in 2030?
Under current law, yes -- the higher $40,000+ cap (growing 1%/year through 2029) is a temporary OBBBA provision that snaps back to a flat $10,000 ($5,000 married filing separately) starting in 2030, with no income-based phase-out at that point since the cap is uniform again. Congress could extend or change this before then, as it did with several TCJA provisions in 2025, but nothing in current law guarantees an extension.
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