United States · IRS tax deduction
SALT deduction cap calculator.
Find your 2026 limit on deducting state and local taxes, then see whether itemizing still beats the standard deduction.
For 2026 you can deduct up to $40,400 of state and local taxes ($20,200 if married filing separately). The cap falls by 30% of your modified AGI over $505,000, down to a $10,000 floor.
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How the cap works
Cap = $40,400 − 30% × (MAGI − $505,000), never below $10,000 and never above $40,400. Deductible SALT = the smaller of the taxes you paid and the cap. Then compare allowed SALT + your other itemized deductions with the standard deduction.
Worked example
Married couple filing jointly, MAGI $560,000. They paid $28,000 of state income tax and $14,000 of property tax ($42,000 total) and have $24,000 of other itemized deductions. MAGI is $55,000 over $505,000, so the cap is $40,400 − (0.30 × $55,000) = $23,900. Allowed SALT is $23,900 and $18,100 is lost. Itemized total: $23,900 + $24,000 = $47,900, against a $32,200 standard deduction. Itemizing wins by $15,700, about $3,768 of federal tax at 24%.
Rules and as-of dates (verified October 1, 2026)
- SALT cap: $40,400 ($20,200 separate) (source: 26 U.S.C. 164(b)(7)(A)(ii))
- Phase-down threshold (MAGI): $505,000 ($252,500 separate) (source: 164(b)(7)(B)(ii))
- Reduction rate: 30% of the excess (source: 164(b)(7)(B)(i))
- Floor: $10,000 ($5,000 separate) (source: 164(b)(7)(B)(iii))
- Standard deduction: $32,200 joint, $24,150 head of household, $16,100 single or separate (source: Rev. Proc. 2025-32, section 3.14(1))
- Age 65+ or blind, per box: $1,650 ($2,050 if unmarried) (source: Rev. Proc. 2025-32, section 3.14(3))
Years after 2026: the cap and threshold are each 101% of the prior year through 2029, then the cap is $10,000 from 2030. This tool covers 2026 only, because the statute does not say how the IRS will round later years.
What this tool does not do
- It does not compute married filing separately above $252,500 of MAGI, because the statute does not spell out how the 30% reduction combines with the halved amounts.
- It ignores other limits on itemized deductions, the alternative minimum tax and state rules.
- It does not check mortgage interest, charity or medical limits. Enter your already-limited amounts.
Frequently asked questions
What is the SALT deduction cap for 2026?
$40,400 for tax year 2026 ($20,200 if married filing separately), under 26 U.S.C. 164(b)(7). It was $40,000 for 2025 and rises 1% a year through 2029, then returns to $10,000 for 2030 and later.
When does the cap phase down?
When modified AGI is over $505,000 for 2026 ($252,500 married filing separately). The cap is cut by 30% of the excess, but never below $10,000 ($5,000 married filing separately). For a single, head-of-household or joint filer the cap hits $10,000 at about $606,334 of MAGI.
What counts toward the cap?
State and local real and personal property taxes plus state and local income taxes, or general sales taxes if you elect them instead. Taxes paid in carrying on a trade or business are outside the cap.
What is modified adjusted gross income here?
Your adjusted gross income plus any amount excluded under section 911 (foreign earned income), 931 or 933 (territory income). Section 164(b)(7)(B)(iv).
Should I itemize or take the standard deduction?
Itemize only if your allowed SALT plus mortgage interest, charitable gifts and your other itemized deductions beat the standard deduction. For 2026 that is $16,100 single, $24,150 head of household and $32,200 joint (Rev. Proc. 2025-32), plus extra for age 65 or older or blindness.
Does a pass-through entity tax workaround still help?
This calculator does not model it. Taxes paid by a business entity can sit outside the individual cap, but eligibility depends on your state and entity type, so ask a tax professional.
Does this cover state income tax on my state return?
No. This is federal only, and it is not tax advice. Your state sets its own rules.
Sources and citation
Official sources: 26 U.S.C. 164(b)(6)–(7) and IRS Rev. Proc. 2025-32, section 3.14. Calculations run in your browser; nothing you type is sent anywhere.
Cite this page: TNAADO Tools, “SALT Deduction Cap Calculator 2026,” https://tools.tnaado.ca/us/salt-deduction-cap-calculator.html, rules verified October 1, 2026.
Estimate only
This page is educational and is not tax advice. Your actual deduction depends on your full return. Confirm with the IRS Schedule A instructions or a qualified tax professional before filing.