Free calculator · Tax year 2026
How much SALT can you actually deduct in 2026?
For tax year 2026 the SALT deduction is capped at $40,400 — up from $10,000 — but the cap shrinks once your income passes about $505,000 and bottoms out back at $10,000. And it only helps if itemizing beats your standard deduction, which for many filers it still does not.
Your cap this year$40,400
SALT above the cap (not deductible)$0
Federal tax this saves you$1,152
Estimate for tax year 2026, federal only, using the same calculation engine as the Spaife app. It does not model every situation.
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Common questions
- How much state and local tax can I deduct in 2026?
- Up to $40,400 ($20,200 if married filing separately), instead of the $10,000 cap that applied before. The One Big Beautiful Bill Act (Pub. L. 119-21, §70120) raised it and indexes it by 1% a year through 2029.
- Does the higher SALT cap phase out at higher incomes?
- Yes. Above roughly $505,000 of modified AGI the cap is reduced by 30 cents per dollar of income over the threshold, until it reaches a $10,000 floor. High earners in high-tax states can end up back where they started.
- Do I get the SALT deduction if I take the standard deduction?
- No. SALT is an itemized deduction, so it only helps if your total itemized deductions beat your standard deduction. This calculator runs both and shows the actual tax difference.
- What counts as SALT?
- State and local income taxes (or sales taxes instead, not both) plus property taxes. Enter the total you expect to pay for the year.
Sources
- 26 U.S.C. §164(b)(6) — limitation on state and local tax deduction.
- One Big Beautiful Bill Act, Pub. L. 119-21, §70120 — raised cap, 1%/yr indexation through 2029, and the high-income phase-down.
- 26 U.S.C. §63 — itemized vs. standard deduction.