What is the SALT deduction cap in 2026?

$40,400 for 2026 (up from $40,000 in 2025), or $20,200 for married filing separately. It phases down for very high incomes and reverts to $10,000 in 2030.

At what income does the SALT cap phase down?

For 2026 the cap is reduced by 30 cents per dollar of modified AGI above $505,000, but never below the $10,000 floor — reaching the floor at about $606,000.

Does the SALT deduction help if I take the standard deduction?

No. SALT is an itemized deduction, so it only reduces your tax if your total itemized deductions exceed the standard deduction ($16,100 single / $32,200 joint in 2026).

SALT Deduction Cap Calculator (2026)

See how much state and local tax you can deduct after the new $40,000 SALT cap — with the high-income phase-down and an itemize-vs-standard check.

Last updated: June 2026 By the FedCalc Editorial Team · checked against IRC §164(b)(6) & IRS guidance

The short answer: The One Big Beautiful Bill Act raised the SALT deduction cap to $40,000 in 2025 and $40,400 in 2026 (up from $10,000). For very high incomes the cap phases down by 30¢ per dollar of MAGI over $505,000 to a $10,000 floor, and the whole increase reverts to $10,000 in 2030. SALT only helps if you itemize. Confirmed

✓ Free, no sign-up ✓ Runs in your browser ✓ 2026 cap, phase-down & standard deduction built in

Try:

This calculator needs JavaScript. Quick reference: the 2026 SALT cap is $40,400 ($20,200 MFS), phasing down 30% above $505,000 of income to a $10,000 floor, reverting to $10,000 in 2030. SALT only helps if you itemize.

How the 2026 SALT cap works

The state and local tax (SALT) deduction lets you deduct state income (or sales) tax plus property tax if you itemize. The 2017 tax law capped it at $10,000; the One Big Beautiful Bill Act (IRC §164(b)(6)) raised the cap to $40,000 for 2025 and $40,400 for 2026, rising about 1% per year through 2029 — then reverting to $10,000 in 2030.

The key numbers

Rule	2026 amount	Status
SALT cap	$40,400 ($20,200 MFS)	Confirmed
Phase-down begins (MAGI)	$505,000	Confirmed
Phase-down rate	30% of income over threshold	Confirmed
Floor (cap never goes below)	$10,000 ($5,000 MFS)	Confirmed
2030 reversion	$10,000	Confirmed

Important: SALT only helps if you itemize

SALT is an itemized deduction. It reduces your tax only if your total itemized deductions (SALT + mortgage interest + charity, etc.) exceed the standard deduction — $16,100 single / $32,200 joint in 2026. The calculator checks this for you and tells you whether itemizing wins. (The calculator covers Single and Married Filing Jointly. Married-filing-separately filers should halve the cap and floor to $20,200 / $5,000.)

Frequently asked questions

What is the SALT cap in 2026?

$40,400 ($20,200 for married filing separately), up from $40,000 in 2025. It reverts to $10,000 in 2030.

At what income does it phase down?

The cap drops 30¢ per dollar of MAGI above $505,000, never below $10,000 — hitting the floor around $606,000.

Does SALT help if I take the standard deduction?

No — only if your total itemized deductions exceed the standard deduction.

Methodology & sources

Allowed cap = max($10,000, $40,400 − 30% × MAGI over $505,000); SALT deduction = min(SALT paid, cap). Benefit shown only if total itemized beats the 2026 standard deduction. Rules follow IRC §164(b)(6).

Congress.gov — P.L. 119-21
One Big Beautiful Bill Act §70120 (IRC §164(b)(6))

Spotted an error? Tell us.

FedCalc Editorial Team
We build free calculators for new U.S. federal programs and check every formula against the underlying law and IRS guidance. Estimates only — not tax advice.

Disclaimer: Educational estimate based on IRC §164(b)(6) and IRS guidance as of June 2026. Not tax advice. FedCalc is independent and not affiliated with the U.S. government or IRS.