The SALT deduction cap was raised well above the prior $10,000 flat limit, but the higher cap itself phases back down to that same floor for high earners.
How it works
Below the phase-out MAGI threshold, the full higher cap applies. Above that threshold, the cap reduces at a 30% rate for every dollar of MAGI above it, until reaching the $10,000 (or $5,000 for married filing separately) floor. The deductible SALT amount is whichever is smaller: SALT actually paid, or the effective cap.
What this does not include
Both the cap and the phase-out threshold rise 1% annually through 2029, then the cap is scheduled to revert to the original $10,000 flat limit in 2030 — this calculator uses the 2026 figures specifically, not later years.
How to use this calculator
- Enter your filing status, MAGI, and total state and local taxes paid.
Frequently asked questions
What counts as SALT for this deduction?
State and local income or sales taxes, plus property taxes, combined and subject to the same overall cap.
Why does the cap phase back down for high earners?
The higher cap was designed to primarily benefit middle- and upper-middle-income taxpayers in high-tax states, while limiting the benefit for the highest earners back toward the original $10,000 cap.
Does this cap revert to $10,000 for everyone eventually?
Yes — under current law, the entire higher-cap structure is scheduled to expire and revert to the original $10,000 flat cap starting in 2030, absent further legislative changes.
