U.S. · Tax forms
Schedule A line 5e, the SALT deduction.
The 2025 cap, who must use the worksheet, and how the phase-down works.
Line 5e is the smaller of line 5d or $40,000 ($20,000 if married filing separately). If Form 1040 line 11b is over $500,000 ($250,000 if married filing separately), or you completed Form 2555 or Form 4563 or excluded Puerto Rico income, use the State and Local Tax Deduction Worksheet instead.
Look up a Schedule A line
Result
Schedule A line 5e on the 2025 form
The 2025 form prints this line as: “Enter the smaller of line 5d or $40,000 ($20,000 if married filing separately). If Form 1040 or 1040-SR, line 11b is more than $500,000 ($250,000 if married filing separately), or if you completed Form 2555, Form 4563, or excluded income from Puerto Rico, see instructions.”
| Line | Meaning | What the IRS says |
|---|---|---|
| Line 5d | Add lines 5a through 5c | Your total state and local taxes before the cap |
| Line 5e | State and local tax deduction | Smaller of line 5d or $40,000 ($20,000 married filing separately) |
| Simple case | Line 11b at or under $500,000 | $250,000 if married filing separately, and no Form 2555, Form 4563 or Puerto Rico exclusion |
| Worksheet case | Line 11b over $500,000 | $250,000 if married filing separately. Complete the worksheet |
| Also worksheet | Form 2555, Form 4563 or Puerto Rico | Completed Form 2555 or 4563, or excluded Puerto Rico income |
| Worksheet line 1 | Is line 5d over $10,000? | $5,000 if married filing separately. If not, enter line 5d on 5e and stop |
| Worksheet 6-7 | Excess income times 30% | Line 4 minus $500,000 ($250,000 MFS), multiplied by 30% |
| Worksheet 9 | Floor of $10,000 | Larger of worksheet line 8 or $10,000 (half of line 9 if married filing separately) |
Do you need the worksheet?
If Form 1040 or 1040-SR line 11b is $500,000 or less ($250,000 if married filing separately) and you did not complete Form 2555 or Form 4563 or exclude income from Puerto Rico, there is no worksheet: enter the smaller of line 5d or $40,000 ($20,000 if married filing separately). Otherwise complete the State and Local Tax Deduction Worksheet in the instructions. The worksheet also lets you skip everything when line 5d is $10,000 ($5,000 if married filing separately) or less.
How the worksheet phases the cap down
The worksheet starts at $40,000, adds line 11b to any Puerto Rico, Form 2555 and Form 4563 excluded amounts, and subtracts $500,000 ($250,000 if married filing separately). If that excess is positive it multiplies it by 30% and subtracts the result from $40,000. It then takes the larger of that figure or $10,000, and line 5e is the smaller of that (half of it if married filing separately) or line 5d.
Worked example
Ravi and Nia (made-up, married filing jointly) have line 5d of $38,000 and line 11b of $520,000. Line 4 is $520,000 and the excess over $500,000 is $20,000, so the reduction is $6,000. Worksheet line 8 is $34,000 and line 9 is $34,000 (above the $10,000 floor). Line 10, the smaller of $34,000 or line 5d of $38,000, is $34,000, which is entered on line 5e. At line 11b of $500,000 or less they would enter $38,000, the smaller of line 5d or $40,000.
Related lines
Line 5e then adds with line 6 on line 7. Line 5b real estate tax is covered on its own page, and for a full model with your own numbers see the SALT calculator linked below.
More Schedule A line pages
Other pages in this set: Schedule A line 5b, Schedule A line 7, Schedule A line 11, Schedule A line 16.
Sources
- Instructions for Schedule A (Form 1040) (2025): the line-by-line instructions on this page. Page last reviewed or updated April 30, 2026. Read November 2, 2026.
- Schedule A (Form 1040) 2025: the printed line wording and arithmetic on the form. Read November 2, 2026.
Tax year 2025 edition (returns filed in 2026). Line numbers, dollar limits and wording are those printed in the 2025 form and instructions and change by year. Names in worked examples are made up.
Frequently asked questions
What goes on Schedule A line 5e?
The smaller of line 5d or $40,000 ($20,000 if married filing separately), unless your income is over $500,000 ($250,000 if married filing separately) or you completed Form 2555 or Form 4563 or excluded Puerto Rico income, in which case use the worksheet.
When do I use the State and Local Tax Deduction Worksheet?
When Form 1040 line 11b is more than $500,000 ($250,000 if married filing separately), or you completed Form 2555 or Form 4563, or excluded income from Puerto Rico.
How much does the cap shrink for higher incomes?
The worksheet reduces $40,000 by 30% of the amount your income measure is over $500,000 ($250,000 if married filing separately), but never below $10,000 ($5,000 if married filing separately).
What if my state and local taxes are $10,000 or less?
The worksheet says that if line 5d is $10,000 ($5,000 if married filing separately) or less, enter line 5d on line 5e and skip the rest.
Does line 5e include sales tax or income tax?
Line 5d adds line 5a (income taxes or general sales taxes, not both), 5b and 5c. Line 5e then caps that total.
Not tax advice
This page summarizes IRS instructions, mostly written for the people who prepare the form, and is not tax, legal or financial advice. A CPA or an enrolled agent can confirm what a line means for your return. Everything runs in your browser; nothing you enter is sent anywhere.