SALT Deduction Calculator: The State and Local Tax Cap
The federal cap on your state and local tax (SALT) deduction is $40,000 for 2025 and $40,400 for 2026 ($20,000 and $20,200 if married filing separately), up from $10,000. The cap shrinks by 30 cents for each dollar your modified adjusted gross income is above $500,000 for 2025 ($505,000 for 2026), but never below $10,000. It rises 1% a year for 2027 to 2029 and goes back to $10,000 in 2030. It only helps if you itemize.
This calculator shows your cap for the year and filing status, how much the income phase-down takes off, how much of your state and local tax you can deduct, and what that is worth compared with the old $10,000 cap. This calculator does not estimate state income tax: enter the state and local tax you paid or expect to pay.
Maintained by Archie Chang · Rules checked against the statute and IRS documents October 28, 2026 · Methodology & sources
Not affiliated with the Internal Revenue Service. FedRateCalc is an independent site. The figures come from the statute and IRS documents linked below; confirm your own return with the IRS instructions or a tax professional.
Your taxes and income
Qualifying surviving spouse: use Married filing jointly (same cap and standard deduction).
Form 1040 line 11b, plus income you excluded under section 911 (foreign earned income), 931 or 933 (Puerto Rico and U.S. possessions).
You choose one: income tax or sales tax, not both.
Mortgage interest, charitable gifts and anything else on Schedule A except the taxes above.
Your SALT deduction
Allowed SALT deduction (2026)
$32,600
All $32,600 of your state and local taxes fits under the cap.
- Cap before the income phase-down
- $40,400
- Phase-down reduction (MAGI over $505,000)
- $0
- Your cap
- $40,400
- SALT you lose to the cap
- $0
- Extra deduction vs the old $10,000 cap
- $22,600
Itemize or take the standard deduction?
- Allowed SALT + other itemized deductions
- $44,600
- Standard deduction
- $16,100
Itemizing is larger by $28,500.
The standard deduction shown is the basic amount plus the additional standard deductions you entered. The $6,000 senior deduction (26 U.S.C. 151(d)(5)(C), added by Pub. L. 119-21 sec. 70103) is allowed whether or not you itemize, so it does not change this comparison.
Estimated federal tax saved by the higher cap
$5,424
Estimate: $22,600 of extra deduction × 24% marginal rate.
A rough estimate that ignores credits, the alternative minimum tax and bracket changes. This calculator does not estimate state income tax.
SALT cap and income threshold by year
Section 164(b)(7) sets the cap, which the statute calls the applicable limitation amount, and the income threshold for the phase-down. Only 2025 and 2026 are written as dollar amounts. For 2027 to 2029 the statute says 101 percent of the prior year, so those figures are derived from the statute. The statute has no rounding rule, so the amounts below are exact; the IRS may publish rounded figures for those years.
| Tax year | Cap | How it is set | Married filing separately |
|---|---|---|---|
| 2025 | $40,000 | Written in the statute | $20,000 |
| 2026 | $40,400 | Written in the statute | $20,200 |
| 2027 | $40,804 | $40,400 x 1.01 = $40,804 | $20,402 |
| 2028 | $41,212.04 | $40,804 x 1.01 = $41,212.04 | $20,606.02 |
| 2029 | $41,624.1604 | $41,212.04 x 1.01 = $41,624.1604 | $20,812.0802 |
| 2030 | $10,000 | Set by the statute for years after 2029 | $5,000 |
| Tax year | Threshold | How it is set | Floor reached at (single, joint) | Married filing separately: threshold / floor reached |
|---|---|---|---|---|
| 2025 | $500,000 | Written in the statute | $600,000 | $250,000 / $350,000 |
| 2026 | $505,000 | Written in the statute | about $606,333 | $252,500 / about $353,833 |
| 2027 | $510,050 | $505,000 x 1.01 = $510,050 | about $612,730 | $255,025 / about $357,705 |
| 2028 | $515,150.50 | $510,050 x 1.01 = $515,150.50 | about $619,191 | $257,575.25 / about $361,615 |
| 2029 | $520,302.005 | $515,150.50 x 1.01 = $520,302.005 | about $625,716 | $260,151.0025 / about $365,565 |
| 2030 | None | No phase-down from 2030 | Not applicable | Not applicable |
The floor column is the modified AGI where 30% of the excess has taken the cap down to $10,000: the threshold plus (cap − $10,000) ÷ 0.30. For 2025 that is $500,000 + $30,000 ÷ 0.30 = $600,000. For 2026 it is $505,000 + $30,400 ÷ 0.30 = about $606,333.
The IRS has published the 2025 figures in the Schedule A instructions and the 2026 figures on a draft Schedule A. It has not published 2027 to 2029. Check the IRS instructions for the year you file.
Worked example: how the phase-down works
A single filer with modified AGI of $550,000 in 2025, who paid $32,000 of state and local taxes in total:
- Excess over the $500,000 threshold: $550,000 − $500,000 = $50,000.
- Reduction: 30% × $50,000 = $15,000.
- Cap: $40,000 − $15,000 = $25,000. This is above the $10,000 floor, so it stands.
- Allowed SALT: the smaller of $32,000 and $25,000 = $25,000. The other $7,000 is not deductible.
At $600,000 of modified AGI the reduction is $30,000 and the cap is exactly $10,000. At $5,000,000 it is still $10,000. Compare the old rule: the same filer could deduct $10,000, so the new law adds $15,000 of deduction.
The same numbers married filing separately, with modified AGI of $300,000: the excess over $250,000 is $50,000, the reduction is 30% × $50,000 = $15,000, the full amount becomes $40,000 − $15,000 = $25,000, and the cap is half of that, $12,500. This is the IRS worksheet order: reduce, apply the $10,000 floor, then halve.
Modified AGI here is adjusted gross income plus any amount excluded from gross income under section 911, 931 or 933. In practice that means Form 1040 line 11b plus excluded foreign earned income and Puerto Rico or U.S. possession income. For most people it is just their AGI.
Who benefits from the higher SALT cap
- Itemizers whose state and local taxes are above $10,000. If your income tax or sales tax plus property taxes were more than the old cap, the extra now counts up to $40,000 for 2025 and $40,400 for 2026, as long as your modified AGI is at or below the threshold.
- Homeowners. Real estate tax on your home goes on line 5b and counts toward the same cap as income tax. Principal and interest are not part of it. Use the mortgage calculator to see your monthly payment with property tax.
- People close to the standard deduction. A larger SALT deduction can push your itemized total past the standard deduction when it would not have under the $10,000 cap.
Who does not benefit: filers who take the standard deduction, people whose state and local taxes are already under $10,000, and people with modified AGI far above the threshold, whose cap is back at $10,000 above about $600,000 in 2025.
The SALT cap is separate from the 2025 law's new deductions on Schedule 1-A. See the no tax on overtime calculator for another deduction from Public Law 119-21; the IRS says you can claim those even if you itemize (quoted in the section below).
What counts toward the cap and what does not
Counts (Schedule A lines 5a to 5c)
- State and local income tax, or state and local general sales tax if you elect it.
- State and local real estate tax on property you own, if assessed at a like rate on all property.
- State and local personal property tax, if based on value alone and imposed yearly.
Does not count toward the cap
- Foreign real property tax: it is not deductible as a personal itemized deduction (unless paid in a trade or business or rental activity).
- Itemized charges for services such as trash collection or water, and assessments that raise property value.
- Real estate and personal property taxes paid in a trade or business or a section 212 income-producing activity (for example, a rental property) are not subject to the cap; they go on Schedule C, E or F. State and local income tax on business income is still subject to the cap. This calculator does not model business or rental property taxes.
Foreign income taxes are a separate item on Schedule A line 6, and the statute says the cap does not apply to them either. A pass-through entity or business tax situation depends on your return, so ask a tax professional rather than using this calculator for it. The statute sentence is quoted in full below.
Itemize or take the standard deduction
The SALT deduction is an itemized deduction, so it only lowers your tax if your total itemized deductions are larger than your standard deduction. The calculator adds your allowed SALT to your other itemized deductions and compares the total with the basic standard deduction.
| Filing status | 2025 | 2026 |
|---|---|---|
| Single | $15,750 | $16,100 |
| Head of household | $23,625 | $24,150 |
| Married filing jointly | $31,500 | $32,200 |
| Married filing separately | $15,750 | $16,100 |
Source: IRS Rev. Proc. 2025-32 (sections 2.08 and 3.01 for 2025, section 4.14 for 2026). The table shows the basic amounts. The standard deduction for 2027 and later has not been published, so for those years the calculator shows the SALT numbers and an estimate that assumes you itemize, without saying which deduction is larger.
Age 65 or older or blind. Each of these conditions, for you and for your spouse on a joint return, adds an amount to the standard deduction: $2,000 (2025) or $2,050 (2026) if you are unmarried, $1,600 (2025) or $1,650 (2026) if you are married or a surviving spouse. Rev. Proc. 2024-40 section 2.15(3) gives the 2025 amounts and Rev. Proc. 2025-32 section 4.14(3) the 2026 amounts. Enter the count in the calculator; a 2026 single filer who is 65 or older has an $18,150 standard deduction, not $16,100. The $6,000 senior deduction (26 U.S.C. 151(d)(5)(C), added by Pub. L. 119-21 sec. 70103) is allowed whether or not you itemize, so it does not change this comparison.
Married filing separately. If your spouse itemizes, your standard deduction is zero and you must itemize too. This follows 26 U.S.C. 63(c)(6)(A), quoted below, and the calculator has a check box for it.
Qualifying surviving spouse: use Married filing jointly. The statute halves the cap only for a married individual filing a separate return, and Rev. Proc. 2025-32 lists surviving spouses with joint filers for the standard deduction.
The estimated tax saving counts only what the new cap adds. If you would have taken the standard deduction under the old $10,000 cap, only the part of your itemized total above the standard deduction is counted. The estimate multiplies that by the marginal rate you pick (10%, 12%, 22%, 24%, 32%, 35% or 37%) and ignores credits, the alternative minimum tax and bracket changes.
The 37% bracket from 2026. Pub. L. 119-21 section 70111 amended section 68 so that, for taxable years beginning after December 31, 2025, itemized deductions are reduced by 2/37 of the lesser of your itemized deductions or your taxable income above the start of the 37% bracket. Each dollar of deduction then saves about 35% rather than 37%, so from 2026 the calculator estimates a 37% filer at 35% and says so next to the estimate.
2030: the cap goes back to $10,000
The higher cap is temporary. Under section 164(b)(7)(A)(iv), the applicable limitation amount is $10,000 for taxable years beginning after 2029 ($5,000 if married filing separately), and the income phase-down applies only to years before 2030. The calculator's 2030 option shows that rule. Until then the cap grows 1% a year: $40,804 for 2027, $41,212.04 for 2028 and $41,624.1604 for 2029.
Nothing here predicts what Congress will do. These are the dates written into the law as it stands. If you buy a home or plan to prepay taxes, check the current rules for the year you file.
Married filing separately
Married filing separately has a $20,000 cap for 2025 and $20,200 for 2026, with the phase-down starting at half the threshold, $250,000 and $252,500, and a floor of $5,000. The detail that surprises people: the IRS worksheet takes 30% of the excess off the full amount first, applies the $10,000 floor, then halves the result. A separate filer therefore loses 15 cents of cap per dollar over the threshold, not 30, and reaches the floor at $350,000 of modified AGI in 2025 (the single and joint floor is $600,000). The statute gives the same order: section 164(b)(7)(B)(i) and (iii) reduce and floor the applicable limitation amount, and section 164(b)(6)(B) then halves it for a married individual filing a separate return.
What the statute and the IRS say
Every passage below is copied word for word from the document named above it. Section 70120 of Public Law 119-21 amended section 164(b)(6) and added section 164(b)(7), effective for taxable years beginning after December 31, 2024.
The statute
“the aggregate amount of taxes taken into account under paragraphs (1), (2), and (3) of subsection (a) and paragraph (5) of this subsection for any taxable year shall not exceed the applicable limitation amount (half the applicable limitation amount in the case of a married individual filing a separate return).”
26 U.S.C. 164(b)
“foreign real property taxes shall not be taken into account under subsection (a)(1)”
26 U.S.C. 164(b)
“The preceding sentence shall not apply to any foreign taxes described in subsection (a)(3) or to any taxes described in paragraph (1) and (2) of subsection (a) which are paid or accrued in carrying on a trade or business or an activity described in section 212.”
26 U.S.C. 164(b)
“(i) in the case of any taxable year beginning in calendar year 2025, $40,000, (ii) in the case of any taxable year beginning in calendar year 2026, $40,400, (iii) in the case of any taxable year beginning after calendar year 2026 and before 2030, 101 percent of the dollar amount in effect under this subparagraph for taxable years beginning in the preceding calendar year, and (iv) in the case of any taxable year beginning after calendar year 2029, $10,000.”
26 U.S.C. 164(b)
“Except as provided in clause (iii), in the case of any taxable year beginning before January 1, 2030, the applicable limitation amount shall be reduced by 30 percent of the excess (if any) of the taxpayer’s modified adjusted gross income over the threshold amount (half the threshold amount in the case of a married individual filing a separate return).”
26 U.S.C. 164(b)
“(I) in the case of any taxable year beginning in calendar year 2025, $500,000, (II) in the case of any taxable year beginning in calendar year 2026, $505,000, and (III) in the case of any taxable year beginning after calendar year 2026, 101 percent of the dollar amount in effect under this subparagraph for taxable years beginning in the preceding calendar year.”
26 U.S.C. 164(b)
“The reduction under clause (i) shall not result in the applicable limitation amount being less than $10,000.”
26 U.S.C. 164(b)
“the term “modified adjusted gross income” means adjusted gross income increased by any amount excluded from gross income under section 911, 931, or 933.”
26 U.S.C. 164(b)
“At the election of the taxpayer for the taxable year, subsection (a) shall be applied— (i) without regard to the reference to State and local income taxes, and (ii) as if State and local general sales taxes were referred to in a paragraph thereof.”
26 U.S.C. 164(b)
“The amendments made by this section shall apply to taxable years beginning after December 31, 2024.”
Pub. L. 119-21, sec. 70120(c)
“In the case of— (A) a married individual filing a separate return where either spouse itemizes deductions, (B) a nonresident alien individual, (C) an individual making a return under section 443(a)(1) for a period of less than 12 months on account of a change in his annual accounting period, or (D) an estate or trust, common trust fund, or partnership, the standard deduction shall be zero.”
26 U.S.C. 63(c)(6)
“the amount of the itemized deductions otherwise allowable for the taxable year (determined without regard to this section) shall be reduced by 2 ⁄ 37 of the lesser of— (1) such amount of itemized deductions, or (2) so much of the taxable income of the taxpayer for the taxable year (determined without regard to this section and increased by such amount of itemized deductions) as exceeds the dollar amount at which the 37 percent rate bracket under section 1 begins with respect to the taxpayer.”
26 U.S.C. 68(a), as amended by Pub. L. 119-21 sec. 70111
“The amendments made by this section shall apply to taxable years beginning after December 31, 2025.”
Pub. L. 119-21, sec. 70111(c)
The IRS
“The overall limit on the deduction for state and local income, sales, and property taxes has increased to $40,000 ($20,000 if married filing separately). The overall limit is reduced if your modified adjusted gross income is more than $500,000 ($250,000 if married filing separately) but will not be reduced below $10,000 ($5,000 if married filing separately).”
IRS Instructions for Schedule A (2025)
“In most cases, your federal income tax will be less if you take the larger of your itemized deductions or your standard deduction.”
IRS Instructions for Schedule A (2025)
“You can elect to deduct state and local general sales taxes instead of state and local income taxes. You can't deduct both.”
IRS Instructions for Schedule A (2025)
“The deduction for state and local taxes is generally limited to $40,000 ($20,000 if married filing separately). State and local taxes subject to this limit are the taxes that you include on lines 5a, 5b, and 5c.”
IRS Instructions for Schedule A (2025)
“Enter on line 5b the state and local taxes you paid on real estate you own that wasn't used for business, but only if the taxes are assessed uniformly at a like rate on all real property throughout the community, and the proceeds are used for general community or governmental purposes.”
IRS Instructions for Schedule A (2025)
“Enter on line 5c the state and local personal property taxes you paid, but only if the taxes were based on value alone and were imposed on a yearly basis.”
IRS Instructions for Schedule A (2025)
“Foreign personal or real property taxes.”
IRS Instructions for Schedule A (2025), Taxes You Can't Deduct
“If Form 1040 or 1040-SR, line 11b is equal to or less than $500,000 ($250,000 if married filing separately), and you didn’t complete Form 2555 or Form 4563, or you didn’t exclude income from Puerto Rico, enter the smaller of line 5d or $40,000 ($20,000 if married filing separately). If Form 1040 or 1040-SR, line 11b is more than $500,000 ($250,000 if married filing separately), or if you completed Form 2555, Form 4563, or excluded income from Puerto Rico, complete the State and Local Tax Deduction Worksheet to figure the amount to enter on line 5e.”
IRS Instructions for Schedule A (2025)
“Enter the larger of the amount on line 8 or $10,000”
IRS Instructions for Schedule A (2025)
“Enter the smaller of the amount on line 9 (half the amount on line 9 if married filing separately) or the amount from Schedule A, line 5d here and on Schedule A, line 5e”
IRS Instructions for Schedule A (2025)
“If you are eligible, you can claim these deductions even if you itemize on Schedule A.”
IRS Instructions for Schedule A (2025), What's New (new Schedule 1-A deductions, including the enhanced deduction for seniors)
“Enter the smaller of line 5d or $40,400 ($20,200 if married filing separately). If Form 1040 or 1040-SR, line 11b, is more than $505,000 ($252,500 if married filing separately), or if you completed Form 2555, Form 4563, or excluded income from Puerto Rico, see instructions”
IRS draft 2026 Schedule A, line 5e
“Married Individuals Filing Joint Returns and Surviving Spouses (§ 1(j)(2)(A)) $32,200 Heads of Households (§ 1(j)(2)(B)) $24,150 Unmarried Individuals (other than Surviving Spouses and Heads of Households) (§ 1(j)(2)(C)) $16,100 Married Individuals Filing Separate Returns (§ 1(j)(2)(D)) $16,100”
IRS Rev. Proc. 2025-32, section 4.14(1) (2026)
“the additional standard deduction amount under § 63(f) for the aged or the blind is $1,650. The additional standard deduction amount is increased to $2,050 if the individual is also unmarried and not a surviving spouse.”
IRS Rev. Proc. 2025-32, section 4.14(3) (2026)
“the additional standard deduction amount under § 63(f) for the aged or the blind is $1,600. The additional standard deduction amount is increased to $2,000 if the individual is also unmarried and not a surviving spouse.”
IRS Rev. Proc. 2024-40, section 2.15(3) (2025; Rev. Proc. 2025-32 section 3.01 removes only section 2.15(1))
“for taxable years beginning after December 31, 2024, the basic standard deduction amounts provided in § 63(c)(2) are increased to $15,750 for single individuals and married individuals filing separate returns; $23,625 for heads of households; and $31,500 for married individuals filing a joint return and surviving spouses. These amounts are adjusted for inflation for taxable years beginning after 2025.”
IRS Rev. Proc. 2025-32, section 2.08
SALT deduction questions
What is the SALT deduction cap for 2026?
The cap is $40,400 for 2026, or $20,200 if you are married filing separately. For 2025 it is $40,000 ($20,000 if married filing separately). Before Public Law 119-21 it was $10,000 ($5,000 if married filing separately). The cap applies to your state and local income or sales tax, real property tax and personal property tax combined.
Who gets a smaller SALT cap?
Filers with modified adjusted gross income above $500,000 for 2025 or $505,000 for 2026 ($250,000 and $252,500 if married filing separately). For a single, head of household or joint filer the cap falls by 30 cents for each dollar above the threshold (15 cents if married filing separately, which reaches the $5,000 floor at $350,000 in 2025) and stops falling at $10,000 ($5,000 if married filing separately). That floor is reached at $600,000 of modified AGI in 2025 and about $606,333 in 2026.
What taxes count toward the SALT cap?
State and local income tax or general sales tax (you pick one), state and local real property tax, and state and local personal property tax. These are the amounts on Schedule A lines 5a, 5b and 5c. Foreign real property taxes are not deductible here, and neither are charges for specific services or improvements that raise the value of your property.
Can I deduct both state income tax and sales tax?
No. The IRS says you can elect to deduct state and local general sales taxes instead of state and local income taxes, and you can't deduct both. Whichever you choose, it counts toward the same cap together with your property taxes.
Does the SALT cap matter if I take the standard deduction?
No. The cap limits an itemized deduction, so it only matters if your total itemized deductions beat the standard deduction. For 2026 the standard deduction is $16,100 for single filers, $24,150 for head of household and $32,200 for married couples filing jointly, so a higher SALT cap helps most when your state and local taxes plus mortgage interest and gifts come close to or pass those amounts.
What happens to the SALT cap in 2030?
The statute sets the applicable limitation amount back to $10,000 for taxable years beginning after 2029, and the income phase-down does not apply from 2030. For 2027 to 2029 the cap rises 1% a year from $40,400: $40,804, $41,212.04 and $41,624.1604. Congress could change these rules before then.
How does the SALT cap work if I am married filing separately?
Your cap is half the normal amount: $20,000 for 2025 and $20,200 for 2026. The phase-down starts at half the threshold ($250,000 for 2025). The IRS worksheet takes 30% of the excess off the full amount, applies the $10,000 floor, then halves the result, so the floor for a separate return is $5,000 and each dollar of income above the threshold costs 15 cents of cap.
Sources (checked October 28, 2026): Pub. L. 119-21, secs. 70111 and 70120 · 26 U.S.C. 164 · 26 U.S.C. 63 · 26 U.S.C. 68 · IRS Instructions for Schedule A (2025) · IRS draft 2026 Schedule A · IRS Rev. Proc. 2025-32 · IRS Rev. Proc. 2024-40