SALT Deduction Calculator: $40,000 Cap (2025–2029)
The state-and-local tax deduction cap rose from $10,000 to $40,000 for 2025 ($40,400 for 2026), phasing down to $10,000 for higher incomes. This tool shows whether itemizing now beats the standard deduction.
Last updated: October 20, 2026
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- Cap: $40,000 for 2025, rising 1% per year through 2029, then returning to $10,000 in 2030. IRC §164(b)(7)(A)
- Phase-down: the cap is reduced by 30% of MAGI above $500,000 ($505,000 in 2026), but never below $10,000. IRC §164(b)(7)(B)
- Same cap and threshold for single and joint filers. Married filing separately receives half; MFS is not supported in this version.
- It only helps if you itemize. The result compares your itemized total with the standard deduction ($15,750 single / $31,500 joint for 2025).
FAQ
Is the cap per person or per return?
Per return. Single and married-joint filers have the same $40,000 cap. Married filing separately receives half.
What counts as SALT?
State and local income (or sales) tax plus real estate and personal property taxes. This calculator asks for income and property taxes.
What happens above $600,000 of income?
For 2025, the 30% phase-down reaches the $10,000 floor at $600,000 of MAGI.
Does the PTET workaround still work?
Pass-through entity tax elections were preserved. This calculator does not model them.
Can I deduct charity without itemizing?
Starting in 2026, a non-itemizer charitable deduction applies, subject to statutory limits. It is not modeled here.
When does the cap revert?
Tax year 2030, when the applicable SALT limit returns to $10,000.
Methodology
effective cap = max(10000, statutory cap − 0.30 × max(0, MAGI − threshold)); itemized = min(state/local income tax + property tax, effective cap) + mortgage interest + charity. The year-indexed Pub. L. 119-21 §70120 / IRC §164(b)(7) table (cap / threshold) is: 2025 $40,000 / $500,000; 2026 $40,400 / $505,000; 2027 $40,804 / $510,050; 2028 $41,212.04 / $515,150.50; 2029 $41,624.16 / $520,302.01. The cap returns to $10,000 in 2030 and the temporary phase-down ends. Single, Head of Household, and joint returns use these values; MFS receives half the cap and half the threshold but is unsupported in the UI. The itemized total is compared with the shared standard-deduction table. The old-law tax comparison uses a $10,000 cap and an exact shared bracket walk. MAGI is treated as AGI; Head of Household uses single-filer tax brackets.Sources: IRC §164(b)(6)/(7), as amended by Pub. L. 119-21 §70120 (139 Stat. 169–170); Rev. Proc. 2024-40 / 2025-32 — accessed October 2026Last updated: October 20, 2026 · Reviewed against official IRS guidanceContinue with OBBBA Tax Center · SALT cap timeline guide · 2026 itemize vs. standard guide