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SALT Deduction Calculator — $40,400 Cap (OBBBA)

Enter your state, local, and property taxes to see how much you can deduct under the 2026 $40,400 SALT cap — and what it saves vs the old $10,000 limit.

Updated July 2026 · Figures verified July 2026 (sources) · Editorial standards

Tax saved vs the old $10,000 cap
$3,428
SALT you can deduct (TY2026)
$25,000
Your cap after the phase-down
$40,400
SALT paid$25,000Extra deduction vs old cap$15,000Lost to the cap$0

Your taxes paid

$
$

Key figures

Tax saved vs the old $10,000 cap
$3,428
SALT you can deduct
$25,000
Cap after phase-down
$40,400
SALT lost to the cap
$0

Under the TY2026 $40,400 cap you deduct $25,000 of SALT — $15,000 more than the old $10,000 cap allowed, saving about $3,428 of federal tax.SALT only helps if you itemize — compare your total itemized deductions with the standard deduction ($16,100 single / $32,200 joint for 2026). The cap steps up ~1%/year through 2029, then reverts to $10,000 in 2030.

Tax saved vs the old $10,000 cap
$3,428
By KalkWiseVerified against official sources Updated July 2026

What is the salt deduction calculator 2026?

In short

A married filer paying $25,000 of state and property taxes with $250,000 MAGI deducts the full $25,000 under the 2026 $40,400 SALT cap — $15,000 more than the old $10,000 limit, saving about $3,428 across the 22–24% brackets. Above $505,000 MAGI the cap phases down 30% of the excess, hitting the $10,000 floor around $606,000.

This calculator applies the OBBBA SALT rules for 2026: the cap raised from $10,000 to $40,400, the 30% phase-down of the cap above $505,000 MAGI, and the $10,000 floor — then shows how much of your state, local, and property tax you can actually deduct and what that's worth versus the old cap.

How to use this calculator

  1. 1Enter your total SALT paid: state/local income tax (or sales tax) plus property taxes for the year.
  2. 2Enter your MAGI — above $505,000 the $40,400 cap shrinks by 30 cents per extra dollar.
  3. 3Pick your filing status (married filing separately gets half the cap and threshold — not modeled).
  4. 4Compare the allowed deduction and the tax saved versus the old $10,000 cap.

The formula

cap=max($10,000,$40,000−30%×MAGI excess)
allowed=min(SALT paid,cap)
saved vs old cap=tax(TI)−tax(TI−extra)
Cap = max($10,000, $40,400 − 30% × max(0, MAGI − $505,000)). Allowed SALT = min(SALT paid, cap). Savings vs old cap = tax(taxable) − tax(taxable − extra deduction).
$40,400
— 2026 cap — indexes ~1%/yr through 2029, reverts to $10,000 in 2030
30%
— Phase-down rate on MAGI above $505,000 (2026 threshold, indexes ~1%/yr)
$10,000
— Floor — the cap never drops below this, so nobody is worse off than the old law

Worked example

The scenario

gives

The result

Common use cases

  • Homeowners in high-tax states (NJ, NY, CA, IL, CT) sizing the benefit of the $40,400 cap
  • High earners near $505,000 MAGI planning income timing around the 30% phase-down
  • Deciding whether itemizing now beats the standard deduction after the cap increase

Limitations & assumptions

  • SALT is an itemized deduction — it only helps if your total itemized deductions beat the standard deduction ($16,100 single / $32,200 joint for 2026). The bracket estimate here assumes the standard deduction as the baseline.
  • Married filing separately uses half the cap, threshold, and floor ($20,200 / $252,500 / $5,000) — not modeled here.
  • The cap and threshold index ~1% per year through 2029; this calculator uses the 2026 amounts ($40,400 / $505,000).
  • AMT interactions and state PTET workarounds for pass-through owners are not modeled.

Frequently asked questions

$40,400 per return ($20,200 married filing separately) — roughly quadruple the old $10,000 cap — for taxpayers with MAGI up to $505,000. It rises about 1% per year through 2029, then reverts to $10,000 in 2030.

Disclaimer: KalkWise calculators are provided for general informational and educational purposes only and do not constitute financial, investment, tax, or legal advice. Results are estimates based on the figures you enter and the assumptions described above. Actual outcomes will vary. Consult a qualified professional before making financial decisions.