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Walk-through

How to Use This Calculator

5 steps

1

Enter the taxes you paid

Enter your state/local income (or sales) tax and your property tax. You can deduct the larger of income or sales tax — not both — plus property tax.

2

Set filing status and MAGI

Choose your filing status and enter your modified AGI. MAGI drives the phase-down that shrinks the cap above $505,000 in 2026 — or $252,500 for married filing separately.

3

Add mortgage interest and charitable gifts

Add deductible mortgage interest and charitable contributions. Together with your usable SALT, these decide whether itemizing beats the standard deduction.

4

Read your usable SALT and the verdict

Read the usable SALT deduction and the itemize-vs-standard verdict. The stat cells show how much SALT is capped away and your total itemized amount.

5

Check the phase-out and 2030 outlook

Open the Phase-Out and 2025–2030 Outlook tabs to see the cap curve at your income and how the deduction falls when the cap reverts to $10,000 in 2030.

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Reference

Formula & Methodology

3 formulas

Usable SALT deduction

usableSALT = min(stateLocalTax + propertyTax, cap)

Your SALT deduction is the smaller of the state/local plus property tax you actually paid and your SALT cap for that year and filing status.

SALT cap with MAGI phase-down

cap = max(floor, base − 0.30 × max(0, MAGI − threshold))

The cap starts at the base ($40,400 in 2026; half for MFS), loses 30% of every dollar of MAGI over the threshold, and never falls below the $10,000 floor ($5,000 MFS).

Itemize vs. standard deduction

itemize if (usableSALT + mortgageInterest + charitable) > standardDeduction

Itemizing beats the standard deduction only when your usable SALT plus mortgage interest and charitable gifts exceed the standard deduction for your filing status.

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High YMYL

Trust, Methodology & Sources

Reviewed by Calculover Editorial Review · Updated 2026-07-12 · 3 sources

Editorial accountability

Author: Quinn Sumner{{^authorProfileUrl}}Quinn Sumner{{/authorProfileUrl}} - Editor

Owner: Quinn Sumner - Editorial owner

Reviewer: Calculover Editorial Review - Government-source and limitation review

Last reviewed: 2026-07-12

Last verified: 2026-07-12

Data effective: 2026-01-01

Methodology

The calculator applies the OBBBA SALT cap (IRC §164(b)(6) as amended by P.L. 119-21): a base cap of $40,400 for 2026 (half for married filing separately), reduced by 30% of modified AGI over $505,000 down to a $10,000 floor, and reverting to $10,000 in 2030. Usable SALT is the lesser of tax paid and the cap; itemizing is compared against the Rev. Proc. 2025-32 standard deduction.

Assumption: SALT is the larger of your state/local income OR sales tax, plus property tax — you enter one income/sales figure, not both.

Assumption: Modified AGI is treated as approximately equal to AGI, which holds for most filers without foreign or other add-backs.

Assumption: 2025 and 2026 caps, thresholds, and standard deductions are the enacted figures; 2027–2029 apply the statutory ~1% per year indexing and are projected.

Assumption: The itemize-vs-standard comparison counts only SALT, mortgage interest, and charitable gifts; other itemized deductions are not modeled.

Limitations & guidance

This tool estimates the federal SALT deduction only; it does not compute your total tax bill, the AMT, or any state tax benefit.

It does not model every itemized deduction (medical, casualty, and others) or tax credits, and does not handle trusts, estates, or part-year residency.

Out-year figures for 2027 through 2030 assume current law; Congress could extend, change, or repeal the expanded cap before it sunsets.

Professional guidance: This calculator is for general education only and is not tax, legal, or financial advice. SALT rules are complex and change; confirm your figures with the IRS or a qualified tax professional before you file.

Primary sources

IRS Rev. Proc. 2025-32 — 2026 inflation adjustments (IR-2025-103) - Internal Revenue Service (2025)

Topic No. 503, Deductible Taxes - Internal Revenue Service (2026)

SALT Deduction Changes in the One Big Beautiful Bill Act - Bipartisan Policy Center (2025)

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Glossary

Key Terms Explained

8 terms

SALT State and local taxes: the state/local income (or sales) tax plus property tax you can deduct on Schedule A, subject to the annual cap.

SALT deduction cap The most SALT you can deduct in a year — $40,400 for 2026 (half for married filing separately), up from the $10,000 TCJA cap.

MAGI Modified adjusted gross income — your AGI with certain items added back. For most filers it is very close to AGI; it drives the SALT phase-down.

Phase-down The reduction of the cap for high earners: 30 cents of cap lost per dollar of MAGI above the threshold, down to a $10,000 floor.

Standard vs. itemized deduction You take the larger of a flat standard deduction or your itemized total (SALT + mortgage interest + charitable). SALT only helps if you itemize.

Married filing separately (MFS) A status where each spouse files their own return. It halves the SALT cap, threshold, and floor — $20,200 / $252,500 / $5,000 in 2026.

Property tax Tax on real estate and certain personal property. It counts toward SALT alongside state/local income or sales tax, under the combined cap.

2030 reversion Under current law the expanded cap sunsets: in 2030 it drops to $10,000 ($5,000 MFS) with no income phase-down — the 'SALT cliff.'

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Scenarios

Real-World Examples

3 worked examples

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Maria & Sam, high-tax state

Full SALT usable

SALT paid $30,000 (18k income + 12k property) MAGI $250,000 Filing / year MFJ, 2026 Mortgage + charity $14,000 + $6,000

At $250k MAGI they are below the $505k threshold, so the full $40,400 cap applies and all $30,000 of SALT is deductible. Their $50,000 itemized total beats the $32,200 standard deduction, so itemizing saves $17,800.

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High earner, $600k MAGI

Cap phased down

SALT paid $30,000 MAGI $600,000 Filing / year MFJ, 2026

MAGI is $95,000 over the $505,000 threshold, so the cap falls by 30% × $95,000 = $28,500, to $11,900. Only $11,900 of their $30,000 SALT is deductible — the other $18,100 is lost to the phase-down.

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Same couple in 2030

The 2030 cliff

SALT paid $30,000 MAGI $250,000 Filing / year MFJ, 2030

In 2030 the expanded cap sunsets and reverts to $10,000 with no income limit. The same $30,000 of SALT now yields only a $10,000 deduction — $20,000 more is capped away than in 2026.

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Deep Dive

The $40,000 SALT Cap: Who Benefits and How the Phase-Out Works

4 chapters · 4 min read

The One Big Beautiful Bill Act raised the SALT deduction cap from $10,000 to more than $40,000 for 2025 through 2029 — a major change for homeowners in high-tax states. But the bigger cap phases out for high earners and disappears in 2030. Here is who benefits, how the math works, and why the next few years may be the best window to itemize.

What the SALT cap actually limits

The SALT deduction covers the state and local taxes you pay: the larger of your state/local income or sales tax, plus property tax. Before 2018 it was unlimited; the Tax Cuts and Jobs Act capped it at $10,000. The OBBBA raised the cap to $40,000 in 2025 and $40,400 in 2026, indexed about 1% a year through 2029. Married couples filing separately get exactly half of every figure.

The MAGI phase-down for high earners

The expanded cap is not for everyone. Once your modified AGI exceeds $505,000 in 2026, the cap shrinks by 30 cents for every dollar of MAGI over that line. It keeps falling until it hits a $10,000 floor — reached around $606,000 of MAGI. So a household at $600,000 MAGI sees its cap cut to about $11,900, not the full $40,400. The threshold and the floor are both halved for married-filing-separately taxpayers.

Does itemizing still beat the standard deduction?

SALT only helps if you itemize, and itemizing only helps if your itemized deductions beat the standard deduction — $32,200 for joint filers in 2026. Add your usable SALT to mortgage interest and charitable gifts. If that total clears the standard deduction, itemize; if not, the standard deduction wins. The bigger SALT cap tips many more high-tax-state homeowners back into itemizing than the old $10,000 cap did.

Why 2029 may be the last good year

Under current law the expanded cap is temporary. In 2030 it reverts to $10,000 ($5,000 MFS) with no income phase-down — the 'SALT cliff.' For anyone whose SALT is well above $10,000, the deduction drops sharply that year. If you have flexibility on when you pay deductible taxes, the 2025–2029 window is when the larger cap is worth the most. Confirm the current-year figures with the IRS, since Congress could extend or change the rules before 2030.

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Questions

Frequently Asked Questions

7 questions

What is the 2026 SALT deduction cap?+

For 2026 the cap is $40,400 for single, head-of-household, and married-filing-jointly taxpayers, and $20,200 for married filing separately. It was $40,000 in 2025 and indexes up about 1% a year through 2029.

Does the SALT cap phase out at higher incomes?+

Yes. Above $505,000 of MAGI in 2026 (half that for MFS), the cap drops 30 cents per dollar of MAGI over the threshold, down to a $10,000 floor ($5,000 MFS) reached near $606,000 of MAGI.

Is it worth itemizing now instead of taking the standard deduction?+

It depends on your numbers. Itemizing beats the standard deduction only when your usable SALT plus mortgage interest, charitable gifts, and other itemized deductions exceed the standard deduction — $32,200 for joint filers in 2026. This calculator runs the comparison for you.

How are married-filing-separately taxpayers treated?+

Every figure is halved: the cap is $20,200 for 2026, the phase-down threshold is $252,500, and the floor is $5,000. So each spouse can deduct at most half of what a joint filer can.

Does the cap include property tax?+

Yes. SALT combines your property tax with the larger of your state/local income or sales tax. It all counts against one combined cap — you don't get a separate limit for each type of tax.

When does the $40,000 cap end?+

Under current law it is temporary. The expanded cap applies for 2025 through 2029, then reverts to $10,000 ($5,000 MFS) in 2030 with no income phase-down, unless Congress changes the law.

Should I deduct income tax or sales tax?+

You can deduct either your state/local income tax or your general sales tax, but not both — pick whichever is larger. Enter that amount here, then add your property tax separately.

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SALT Deduction Cap Calculator

How to Use This Calculator

Enter the taxes you paid

Set filing status and MAGI

Add mortgage interest and charitable gifts

Read your usable SALT and the verdict

Check the phase-out and 2030 outlook

Formula & Methodology

Trust, Methodology & Sources

Key Terms Explained

Real-World Examples

Maria & Sam, high-tax state

High earner, $600k MAGI

Same couple in 2030

The $40,000 SALT Cap: Who Benefits and How the Phase-Out Works

What the SALT cap actually limits

The MAGI phase-down for high earners

Does itemizing still beat the standard deduction?

Why 2029 may be the last good year

Frequently Asked Questions

Get a branded PDF of your results

SALT Deduction Cap Calculator

How to Use This Calculator

Enter the taxes you paid

Set filing status and MAGI

Add mortgage interest and charitable gifts

Read your usable SALT and the verdict

Check the phase-out and 2030 outlook

Formula & Methodology

Trust, Methodology & Sources

Key Terms Explained

Real-World Examples

The $40,000 SALT Cap: Who Benefits and How the Phase-Out Works

What the SALT cap actually limits

The MAGI phase-down for high earners

Does itemizing still beat the standard deduction?

Why 2029 may be the last good year

Frequently Asked Questions

Get a branded PDF of your results

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