SALT Deduction Calculator

Calculate your SALT deduction with the $10,000 cap. See how much you lose to the cap.

By Konstantin Iakovlev · Updated April 2026 · Source: IRS — Forms, Instructions & Publications

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Filing Status

Total SALT

$15,500.00

Capped Deduction

$15,500.00

Lost Deduction

$0.00

SALT Deduction Breakdown

State Income Tax$8,000.00
Property Tax$6,000.00
Sales Tax$1,500.00
Total SALT$15,500.00
SALT Cap ($40,400)$40,400.00
Deductible Amount$15,500.00
Lost to Cap$0.00

Tax Impact

Tax Cost of Cap (24% bracket)$0.00
Standard Deduction$16,100.00
SALT Alone vs StandardSALT below standard deduction

Use the SALT Deduction Calculator above to calculate your results. Enter your values and see instant results — all calculations run in your browser.

Disclaimer: This calculator is for informational purposes only and does not constitute tax, financial, or legal advice. Results are estimates based on the information you provide and current rates. Always consult a qualified tax professional or financial advisor for advice specific to your situation.

How It Works

The State and Local Tax (SALT) deduction cap limits the itemized deductions of many federal filers. The One Big Beautiful Bill Act raised it from $10,000 to $40,400 for 2026 (up from $40,000 in 2025, indexed 1% a year through 2029), after which it is scheduled to revert to $10,000 in 2030. Seeing your potential deduction alongside any amount you forfeit to the cap turns an abstract rule into a concrete planning figure.

The math starts by adding up your state and local income taxes, real estate taxes, and personal property taxes paid. That combined total is then measured against the $40,400 federal SALT cap ($20,200 for married filing separately), which is the same whether you file single or as a married couple filing jointly. Your deductible SALT amount is whichever is smaller, your total taxes paid or the cap, and anything above that line is non-deductible. Filers with modified AGI above $505,000 see the cap phase down toward a $10,000 floor.

One detail that surprises filers: the cap is applied per household, not per spouse, so married couples filing jointly share a single $40,400 ceiling. This tool addresses the federal cap alone, while a number of states have built their own workarounds or credits for state and local taxes paid. Leaving out eligible items, such as personal property taxes on vehicles, is the most frequent way people understate their own calculation.

Example: High-Tax State Homeowner

  1. 1 Sarah and Tom, a married couple in a high-tax state, paid $32,000 in state income taxes, $15,000 in real estate taxes, and $3,000 in personal property taxes in 2026. Their combined state and local taxes totaled $50,000.
  2. 2 Inputting these figures into the calculator, the total eligible SALT is $50,000. The federal SALT deduction cap for 2026 is $40,400 (raised from $10,000 by the One Big Beautiful Bill Act).
  3. 3 Their deductible SALT amount is limited to $40,400. They 'lose' $9,600 ($50,000 - $40,400) in potential federal deductions due to the cap.
  4. 4 This $9,600 non-deductible amount means their taxable income will be $9,600 higher than it would have been without the cap, potentially increasing their federal tax liability. Had the couple's SALT been $40,400 or less, they would deduct it in full under the higher 2026 cap.

Source: IRS — Forms, Instructions & Publications · Last updated: April 2026

Frequently Asked Questions

What is the SALT deduction cap for 2026?
The SALT (State and Local Tax) deduction cap for 2026 is $40,400 per return ($20,200 for married filing separately), raised from $10,000 by the One Big Beautiful Bill Act (up from $40,000 in 2025, indexed 1% a year through 2029). It covers state income tax (or sales tax), property tax, and local taxes combined. Filers with modified AGI above $505,000 see the cap phase down toward a $10,000 floor, and it reverts to $10,000 in 2030.
How much am I losing to the SALT cap?
If your combined state income and property taxes exceed the 2026 cap of $40,400, the excess is your lost deduction. Because the One Big Beautiful Bill Act quadrupled the cap from $10,000, most homeowners now deduct their SALT in full — only those paying more than $40,400, or high earners hit by the phase-out above $505,000 of modified AGI, lose part of it.
Is there a workaround for the SALT cap?
Some states offer a pass-through entity tax (PTET) election that lets business owners deduct state taxes at the entity level, bypassing the individual SALT cap (now $40,400 for 2026). It is available in over 30 states and still helps filers whose SALT exceeds the cap. Consult a tax professional to see if this applies to your situation.

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