SALT Deduction Calculator (2026)
The limit on deducting state and local taxes (SALT) jumped from $10,000 to $40,400 for 2026. That means many homeowners in high-tax states may want to itemize again. Enter your taxes and other deductions to see whether itemizing now beats the standard deduction.
What changed
From 2018 to 2024 you could deduct at most $10,000 of state and local taxes, so most people stopped itemizing. The 2025 tax law raised the cap to $40,000 for 2025 and $40,400 for 2026, rising 1% a year through 2029. For tax years after 2029 it is scheduled to drop back to $10,000.
2026 SALT rules
Examples (2026)
| Situation | Itemized | Saves vs old cap |
|---|---|---|
| Married, $150,000 income, $16,000 SALT, $12,000 mortgage interest | $30,000 (standard is better) | $0 |
| Married, $250,000 income, $30,000 SALT, $18,000 mortgage interest | $52,000 | $4,484 |
| Single, $90,000 income, $7,000 SALT, no mortgage | $7,500 (standard is better) | $0 |
| Married, $560,000 income, $55,000 SALT (cap shrinks) | $48,900 | $4,824 |
What counts as SALT
- State and local income tax withheld from your paychecks or paid with your return.
- Or, instead of income tax, state and local sales tax (useful in states with no income tax).
- Property tax on your home, land and some personal property like cars.
- Not included: tax paid on a rental or business property, which is deducted elsewhere.
How this calculator works
It finds your 2026 SALT cap, reduced by 30% of income above $505,000 but never below $10,000. It caps your state and local taxes, adds mortgage interest, charity and other deductions, and compares the total with the standard deduction. Then it figures your federal income tax with the bigger of the two, and also compares it with what you would have deducted under the old $10,000 cap.
FAQ
What is the SALT cap for 2026?
$40,400 for single and married filing jointly, and $20,200 for married filing separately. It shrinks for incomes over $505,000.
Should I itemize now?
Only if your itemized deductions add up to more than the standard deduction: $16,100 single or $32,200 married filing jointly for 2026.
Can I deduct sales tax instead of income tax?
Yes. You can choose either state and local income tax or sales tax, not both. Property tax can be added either way.
Does the higher cap last forever?
No. It rises 1% a year through 2029, then is scheduled to fall back to $10,000.
Is the $40,400 per person?
No. It is per tax return, so a married couple filing jointly shares one $40,400 cap.
Rules and rates last checked: October 2026. This is an estimate for general information only, not financial, tax or legal advice. Check IRS.gov or a tax professional before you file.