SALT Cap Calculator (2026)
The state and local tax deduction cap is $40,400 in 2026 — see how much of your SALT is deductible at your income.
Estimate your deduction
Results update instantlyProperty taxes plus state and local income (or sales) taxes — itemizers only.
Roughly your adjusted gross income — found on last year’s return or your paystub YTD.
Your 2026 deductible SALT
$26,000
Estimated tax savings: $9,100 · taxed in the 35% bracket
| SALT paid in 2026 | $26,000 |
| Cap at your income (after phase-down) | $40,400 |
| Phase-down of the cap | −$0 |
| Your deduction | $26,000 |
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How the 2026 SALT cap works
The cap on deducting state and local taxes — property taxes plus state income or sales taxes — rose from $10,000 to $40,000 for 2025 and is $40,400 for tax year 2026. You must itemize to claim it.
High earners get less: above $505,000 MAGI, the cap shrinks by 30% of the excess, falling back toward the old $10,000 floor. The floor is reached at about $606,000 MAGI.
The higher cap is temporary. Under current law it applies to 2026 and rises 1% per year through 2029, then reverts to $10,000 in 2030.
Worked example
The Chens pay $31,000 of property tax and $14,000 of state income tax — $45,000 of SALT — with $380,000 MAGI. Below $505,000, the full $40,400 cap applies: they deduct $40,400, and $4,600 of their SALT is disallowed.
Who benefits from the higher cap
- You itemize deductions on Schedule A
- You pay significant property tax and/or state income tax
- Your MAGI is under $505,000 for the full $40,400 cap
- You keep records of taxes actually paid during 2026
2026 phase-out thresholds
| MAGI range | Cap in effect | Notes |
|---|---|---|
| Up to $505,000 | $40,400 | Full 2026 cap |
| $505,000 – $606,000 | Phases down 30% of excess | e.g. $26,900 cap at $550,000 MAGI |
| Above $606,000 | $10,000 | Floor — same as pre-OBBBA |
The phase-down never reduces the cap below $10,000.
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Frequently asked questions
Which taxes count toward SALT?
State and local property taxes plus either state and local income taxes or sales taxes (you choose the larger). Federal taxes never count.
Do I need to itemize?
Yes. SALT is an itemized deduction on Schedule A — if you take the standard deduction, the cap doesn’t affect you.
What happens above $505,000 MAGI?
The $40,400 cap is reduced by 30% of MAGI over $505,000. At about $606,000 MAGI it bottoms out at the $10,000 floor.
Is the $40,400 cap permanent?
No. It started at $40,000 for 2025, is $40,400 for 2026, grows 1% annually through 2029, and reverts to $10,000 in 2030 under current law.
Is the cap per person or per return?
Per return — $40,400 whether you file single or jointly (married filing separately gets half).