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SALT Deduction Cap Calculator (2026 $40,400 Limit)

What does this come to under the current IRS rules?

The state and local tax deduction after the 2026 cap and the income phase-down toward the $10,000 floor.

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  • Nothing stored or sent
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Your figures
Example figuresIllustrative only. Type over them with your own.
Deductible SALT
$23,900
State and local tax deduction allowed
Statutory cap
$40,400
Cap after income reduction
$23,900
Drawn to one scale
Statutory cap$40,400
Cap after income reduction$23,900
Deductible SALT$23,900
Not deductible$31,100
All results
MeasureResult
Statutory cap$40,400
Cap after income reduction$23,900
Deductible SALT$23,900
Not deductible$31,100
How this was worked out
Work shownrecomputed as you type
Limit = max($10,000, $40,400 - 30% x (MAGI - $505,000))
Married filing separately: $20,200, threshold $252,500, floor $5,000
Deduction = lesser of SALT paid and the limit

Illustrative arithmetic on the figures you enter. Check the result against your firm's methodology before relying on it.

The formulas

  • Limit = max($10,000, $40,400 - 30% x (MAGI - $505,000))
  • Married filing separately: $20,200, threshold $252,500, floor $5,000
  • Deduction = lesser of SALT paid and the limit

How it works

Tax year: 2026.

For 2026 the state and local tax deduction is capped at $40,400 ($20,200 if married filing separately). The cap is reduced when modified AGI is above $505,000 ($252,500 married filing separately), by 30 percent of the excess, but not below $10,000 ($5,000 married filing separately). The cap, threshold, 30 percent rate and floor are set by section 164(b)(7) as amended by Public Law 119-21.

The tool applies the lesser of SALT paid and the reduced limit. It assumes you itemize and that the paid amount is already limited to taxes the law allows.

Illustrative figures only. Check the result against your firm's methodology before relying on it.

Common questions

What is the 2026 SALT cap?

$40,400, or $20,200 if married filing separately.

At what income does the cap start to fall?

Modified AGI over $505,000 ($252,500 married filing separately).

What is the lowest the cap goes?

$10,000, or $5,000 if married filing separately.

Sources

Runs in your browser. The figures you type are not sent to CORAA or stored. Check the result against your firm's methodology before relying on it.

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