How the 2025 SALT cap works
For 2025 the One Big Beautiful Bill Act raised the state-and-local-tax deduction cap to $40,000 ($20,000 married filing separately), up from $10,000. SALT remains an itemized deduction (Schedule A) — you must itemize to use it.
High-income phase-outAbove $500,000 MAGI ($250,000 MFS), the cap is reduced by 30% of the excess, but never below $10,000 ($5,000 MFS). By roughly $600,000 MAGI the cap is back to $10,000.
Example. A joint filer with $900,000 MAGI who paid $55,000 in state and local taxes. The 30% phase-out drives the cap to the $10,000 floor, so the deduction is $10,000.
How this calculator works
The tool applies the $40,000 cap ($20,000 MFS), subtracts 30% of MAGI over $500,000 ($250,000 MFS) but not below the $10,000 ($5,000 MFS) floor, then takes the lesser of that cap and the taxes you paid — mirroring the IRS Schedule A worksheet. The cap rises about 1% per year through 2029.
Sources
Disclaimer. This calculator provides simplified estimates of federal tax only and is not tax, legal, or financial advice. Figures are based on IRS guidance as of July 2026 and may change; some 2026 rules are from proposed regulations. Consult a qualified tax professional for your situation.