OBBBA deduction income limits for 2026, side by side
Every OBBBA deduction shrinks as income rises, but the thresholds and rates differ. This table puts them together. Income here means modified adjusted gross income (MAGI).
| Deduction | Max | Phase-out starts (single / joint) | Phase-out rate |
|---|---|---|---|
| Overtime | $12,500 / $25,000 | $150,000 / $300,000 | $100 per $1,000 |
| Tips | $25,000 | $150,000 / $300,000 | $100 per $1,000 |
| Car loan interest | $10,000 | $100,000 / $200,000 | $200 per $1,000 |
| Senior (65+) | $6,000 each | $75,000 / $150,000 | 6% of excess |
| SALT cap (2026) | $40,400 | $505,000 | 30% of excess, $10,000 floor |
Try the Schedule 1-A Estimator
How to read it
For the first four, the “max” is the largest deduction; the phase-out cuts it. Amounts of MAGI over the threshold are rounded up to the next $1,000 for the per-$1,000 reductions. SALT is different: the phase-down lowers the cap, and you still deduct the lesser of your SALT and the reduced cap.
Example: $160,000 single
At $160,000 MAGI, a single filer loses $1,000 of an overtime deduction, $1,000 of a tips deduction, the whole car loan deduction if interest is under $12,000 (the reduction is $12,000), and the entire senior deduction ($85,000 over × 6% = $5,100 reduction, leaving $900).
Plan around the thresholds
Contributions to a traditional 401(k) or HSA lower MAGI and may keep more of a deduction. Ask a tax professional what works for you.
Frequently asked questions
What is MAGI for these deductions?
Generally adjusted gross income plus certain add-backs. Schedule 1-A has the exact calculation.
Are thresholds the same for married filing separately?
Married couples must generally file jointly for overtime, tips and senior deductions.
Do the thresholds change each year?
The statutory thresholds for these deductions are fixed; the SALT threshold and cap are adjusted by 1% a year through 2029.
Schedule 1-A · SALT deduction · Auto loan interest · Schedule 1-A Estimator
This article is educational information, not tax advice. Rules can change and your situation may differ. Confirm details on IRS.gov or with a tax professional. Figures reflect law and IRS guidance as of 2026-10-21. See our methodology.