SALT Deduction Cap Calculator 2026
Calculate your 2026 state and local tax deduction under the $40,400 SALT cap, including the 30% MAGI phasedown above $505,000 and the $10,000 floor.
SALT Deduction Cap Calculator 2026
Filing Status
Married filing separately: the SALT cap is cut in half to $20,200 with a $5,000 floor, and the MAGI phasedown starts at $252,500. Both spouses must also use the same method (both itemize or both take the standard deduction).
State and Local Tax Election
Schedule A line 5a forces a choice: state and local income tax, OR general sales tax. You cannot deduct both.
State Income Tax Paid
Total state income tax withheld plus estimated payments and prior-year balances paid in 2026.
Local / City Income Tax Paid
City or county wage taxes (NYC, Philadelphia, Detroit, etc.). Leave at $0 if none apply.
General Sales Tax Paid
Either your actual receipts total or the IRS optional sales tax tables plus big-ticket items. The IRS Sales Tax Deduction Calculator handles the table math.
Property Tax Paid
Real estate tax plus personal property tax (vehicle registration based on value). Counts regardless of the income or sales election.
Modified Adjusted Gross Income (MAGI)
Drives the 30% phasedown above $505,000 ($252,500 MFS). Not sure of your MAGI? Use the MAGI Calculator.
Your total SALT is within the effective cap, so every dollar paid is deductible on Schedule A.
Estimates only, not tax or legal advice. SALT only matters if you itemize on Schedule A. Download Tax47 for a full return that applies the cap automatically alongside every other 2026 OBBBA change.
Want the Full Schedule A Picture?
Tax47 builds your return from W-2, 1099, and Schedule C data and applies the SALT cap, phasedown, and standard-vs-itemized comparison automatically. Download Tax47 for a complete estimate.
How the 2026 SALT Cap Works Under the One Big Beautiful Bill Act
From 2018 through 2024, the Tax Cuts and Jobs Act capped the state and local tax deduction at a flat $10,000 for all filers (and $5,000 for married filing separately). The One Big Beautiful Bill Act (P.L. 119-21, signed in 2025) lifted that ceiling. For 2025 the cap jumped to $40,000, and the statute increases it by 1% each year through 2029. That puts the 2026 number at $40,400 for single, married filing jointly, head of household, and qualifying surviving spouse filers, and $20,200 for married filing separately.
The cap is the combined limit on three things added together: either state and local income tax OR general sales tax (your choice on Schedule A line 5a), plus real estate tax, plus personal property tax. Mortgage interest, charitable contributions, and medical expenses are separate itemized deductions and sit outside this cap. In 2030, unless Congress extends the higher ceiling, SALT reverts to the flat $10,000 limit with no MAGI phasedown at all.
The $505,000 MAGI Phasedown, With Examples
OBBBA also added a phasedown that erodes the higher cap as income rises. Once your modified adjusted gross income passes $505,000 in 2026 ($252,500 for MFS), the cap is reduced by 30 cents for every dollar of MAGI above that threshold. The cap can never drop below the $10,000 floor ($5,000 MFS), so high earners always get at least the old TCJA-level deduction. Three quick examples make this concrete:
- MAGI $480,000 (MFJ), $35,000 SALT paid. No phasedown. The effective cap stays at $40,400, the full $35,000 is deductible, and nothing is lost.
- MAGI $560,000 (MFJ), $50,000 SALT paid. Excess MAGI is $55,000. The reduction is 30% of that, or $16,500. The effective cap drops to $23,900, the deduction is $23,900, and $26,100 is lost.
- MAGI $650,000 (MFJ), $50,000 SALT paid. Excess MAGI is $145,000, and 30% would be $43,500, but the floor clamps the reduction at $30,400 (the gap between the $40,400 cap and the $10,000 floor). The effective cap is $10,000, the deduction is $10,000, and $40,000 is lost.
The full phasedown for non-MFS filers lands at about $606,333 of MAGI. Any higher and you are stuck at the $10,000 floor for the rest of the bracket. MFS filers hit their $5,000 floor at roughly $303,167.
Income Tax vs Sales Tax: Which Election Is Better?
Schedule A line 5a forces a single choice between state and local income tax OR general sales tax. You cannot deduct both. For most W-2 earners in states with broad income taxes (California, New York, New Jersey, Oregon, etc.), the income tax option wins by a wide margin. Sales tax usually wins for residents of states with no income tax (Florida, Texas, Washington, Nevada, Tennessee, South Dakota, Wyoming, and Alaska), and it can also win in a low-income-tax state during a year with a major taxable purchase, like a car, boat, or RV.
If you go the sales tax route, the IRS publishes optional sales tax tables you can use as a starting point and add big-ticket items to. The IRS Sales Tax Deduction Calculator walks through the table math. The calculator above flips the visible inputs based on your election and surfaces a "switch for $X more" hint when the other option would give you a larger deduction.
Should You Itemize at All in 2026?
SALT only matters if you itemize. The 2026 standard deduction under OBBBA indexing comes in around $16,100 for single filers and $32,200 for married filing jointly, so your full Schedule A total (SALT after the cap, plus mortgage interest, plus charitable, plus qualifying medical above 7.5% of AGI) has to clear that bar before itemizing pays off. With the higher 2026 SALT cap, more households will tip into itemizing than under the old $10,000 limit, especially in high-tax states with large property tax bills.
Run the Itemized vs Standard Deduction Calculator to see which path wins. For homeowners, the Mortgage Interest Deduction Calculator handles the other big itemized line. And to see what each deducted dollar is actually worth in tax, the Tax Bracket Calculator shows your marginal rate.
Frequently Asked Questions
Common questions about salt deduction cap calculator 2026
What is the SALT deduction cap for 2026?
For 2026, the state and local tax (SALT) cap is $40,400 for single, married filing jointly, head of household, and qualifying surviving spouse filers, and $20,200 for married filing separately. The cap rose from $40,000 in 2025 under the One Big Beautiful Bill Act and is indexed 1% per year through 2029, then reverts to a flat $10,000 in 2030 unless Congress acts.
How does the MAGI phasedown work?
Once your modified adjusted gross income passes $505,000 ($252,500 if married filing separately) in 2026, the cap is reduced by 30 cents for every dollar of MAGI above that threshold. The cap can never drop below the $10,000 floor ($5,000 MFS), so the phasedown finishes around $606,333 of MAGI for most filers. Use the /tools/magi-calculator/ to get your MAGI right before plugging it in here.
Can I deduct both state income tax and sales tax?
No. Schedule A line 5a forces a single choice between state and local income tax OR general sales tax. You then add real estate tax (line 5b) and personal property tax (line 5c) to whichever election you picked, and the combined amount runs up against the SALT cap. The calculator's election toggle helps you see which option deducts more.
Does the SALT cap apply if I take the standard deduction?
No. SALT only matters if you itemize on Schedule A. If your total itemized deductions (SALT plus mortgage interest, charitable contributions, and qualifying medical expenses) are less than your standard deduction, the cap is irrelevant. Run the /tools/itemized-vs-standard-deduction-calculator/ to confirm itemizing actually beats your standard deduction.
Is property tax included in the $40,400 cap?
Yes. Real estate tax, personal property tax (vehicle registration based on value, for example), and either state and local income tax or general sales tax all share the single SALT cap. Property tax counts against the limit regardless of whether you elect income tax or sales tax on line 5a.
Is mortgage interest part of SALT?
No. Mortgage interest and points are a separate itemized deduction on Schedule A lines 8a through 10, with their own rules and a separate $750,000 acquisition-debt cap for most loans. They sit outside the SALT limit. See the /tools/mortgage-interest-deduction-calculator/ for that side of Schedule A.
Does the pass-through entity tax (PTET) workaround still work in 2026?
Yes. The final OBBBA text did not restrict state PTET elections, so most state PTET regimes remain a viable workaround for pass-through business owners. This calculator covers individual SALT only because PTET is deducted at the entity level on Form 1065 or 1120-S, not on your personal Schedule A.
What happens to the SALT cap after 2029?
Under the One Big Beautiful Bill Act, the higher cap and its MAGI phasedown apply for tax years 2025 through 2029. In 2030 the cap reverts to a flat $10,000 with no phasedown, regardless of income. Married filing separately would go back to $5,000. Congress could extend or change the rules before then, but the current statute sunsets the higher cap.