{
  "id": "salt-deduction",
  "version": "cb36165d4663",
  "status": "published",
  "name": "SALT Deduction Calculator",
  "question": "What is my SALT deduction?",
  "summary": "Works out the 2026 state and local tax (SALT) deduction on Schedule A: income or sales, real estate and personal property taxes up to the $40,400 limit, which falls by 30% of modified AGI over $505,000 but not below $10,000.",
  "category": "finance",
  "subcategory": "tax-and-pay",
  "url": "https://www.acalculator.org/finance/salt-deduction-calculator",
  "markdown": "https://www.acalculator.org/finance/salt-deduction-calculator.md",
  "kind": "function",
  "method": "Taxes paid = income or sales taxes + real estate taxes + personal property taxes. Limit = the larger of $40,400 − 30% × (modified AGI − $505,000, not below 0) and $10,000; married filing separately: half of the larger of $40,400 − 30% × (modified AGI − $252,500, not below 0) and $10,000. SALT deduction = the smaller of taxes paid and the limit.",
  "assumptions": [
    "Tax year 2026 (IRC 164(b)(7) as amended by P.L. 119-21). Every amount is between −$1 trillion and $1 trillion; taxes are not below $0.",
    "Modified AGI is AGI plus excluded foreign earned income and Puerto Rico or possession income.",
    "Foreign real estate taxes and taxes paid in a business or rental (Schedule C, E or F) are not part of the limit and are not entered here.",
    "The itemized comparison adds your other deductions to the SALT deduction; it leaves out the 2026 limit on itemized deductions for the 37% bracket and the extra standard deduction for age 65 or blindness. An estimate, not tax advice."
  ],
  "inputs": {
    "$schema": "https://json-schema.org/draft/2020-12/schema",
    "type": "object",
    "properties": {
      "status": {
        "title": "Filing status",
        "description": "Your 2026 federal filing status; married filing separately halves the limit and the threshold.",
        "type": "string",
        "enum": [
          "single",
          "mfj",
          "mfs",
          "hoh",
          "qss"
        ]
      },
      "magi": {
        "title": "Modified AGI",
        "description": "Adjusted gross income (Form 1040 line 11) plus any foreign earned income or Puerto Rico or possession income you excluded.",
        "type": "number",
        "x-unit": "USD",
        "minimum": -1000000000000,
        "maximum": 1000000000000
      },
      "income": {
        "title": "State and local income taxes",
        "description": "State and local income taxes you paid in 2026, or general sales taxes if you deduct those instead (line 5a).",
        "type": "number",
        "x-unit": "USD",
        "minimum": 0,
        "maximum": 1000000000000
      },
      "property": {
        "title": "Real estate taxes",
        "description": "State and local real estate taxes on property you own, not foreign real estate taxes (line 5b).",
        "type": "number",
        "x-unit": "USD",
        "minimum": 0,
        "maximum": 1000000000000
      },
      "personal": {
        "title": "Personal property taxes (optional)",
        "description": "State and local taxes based on the value of personal property, such as a car (line 5c).",
        "type": "number",
        "x-unit": "USD",
        "minimum": 0,
        "maximum": 1000000000000
      },
      "other": {
        "title": "Other itemized deductions (optional)",
        "description": "Your other Schedule A deductions, such as mortgage interest and gifts to charity, to compare with the standard deduction.",
        "type": "number",
        "x-unit": "USD",
        "minimum": 0,
        "maximum": 1000000000000
      }
    }
  },
  "outputs": {
    "deduction": {
      "label": "SALT deduction",
      "description": "The smaller of your state and local taxes and your 2026 SALT limit (Schedule A line 5e).",
      "format": "money"
    },
    "total": {
      "label": "State and local taxes paid",
      "description": "Income or sales taxes + real estate taxes + personal property taxes (line 5d).",
      "format": "money"
    },
    "limit": {
      "label": "Your 2026 SALT limit",
      "description": "$40,400 − 30% of modified AGI over $505,000, not below $10,000; married filing separately: half of that, with a $252,500 threshold.",
      "format": "money"
    },
    "phaseDown": {
      "label": "Cut by the income phase-down",
      "description": "How much the phase-down took off the full limit ($40,400, or $20,200 married filing separately).",
      "format": "money"
    },
    "overLimit": {
      "label": "Taxes over the limit",
      "description": "State and local taxes you paid that you cannot deduct: taxes paid − the SALT deduction.",
      "format": "money"
    },
    "itemized": {
      "label": "Itemized deductions",
      "description": "The SALT deduction + your other itemized deductions (shown when you type them).",
      "format": "money"
    },
    "standard": {
      "label": "2026 standard deduction",
      "description": "The basic standard deduction for your filing status, to compare with itemizing.",
      "format": "money"
    }
  },
  "defaultAnswer": {
    "inputs": {
      "status": "mfj",
      "magi": 300000,
      "income": 22000,
      "property": 26000
    },
    "outputs": {
      "deduction": 40400,
      "total": 48000,
      "limit": 40400,
      "phaseDown": 0,
      "overLimit": 7600,
      "standard": 32200
    },
    "text": "With $48,000.00 of state and local taxes and $300,000.00 of modified AGI, your 2026 SALT deduction is $40,400.00."
  },
  "examples": [
    {
      "given": {
        "status": "mfj",
        "magi": 300000,
        "income": 22000,
        "property": 26000
      },
      "expect": {
        "total": 48000,
        "limit": 40400,
        "phaseDown": 0,
        "deduction": 40400,
        "overLimit": 7600,
        "standard": 32200
      },
      "source": "26 U.S.C. 164(b)(6) and (b)(7) as amended by P.L. 119-21 section 70120 ($40,400 for 2026, less 30% of modified AGI over $505,000, not below $10,000), https://www.law.cornell.edu/uscode/text/26/164; IRS Rev. Proc. 2025-32 section 4.14 (standard deduction $32,200); hand calculation in content.mdx; Python 3 check in docs/progress/WP-142/xcheck.py"
    },
    {
      "given": {
        "status": "mfj",
        "magi": 600000,
        "income": 28000,
        "property": 12000,
        "other": 25000
      },
      "expect": {
        "limit": 11900,
        "phaseDown": 28500,
        "deduction": 11900,
        "overLimit": 28100,
        "itemized": 36900
      },
      "source": "26 U.S.C. 164(b)(6) and (b)(7) as amended by P.L. 119-21 section 70120 ($40,400 for 2026, less 30% of modified AGI over $505,000, not below $10,000), https://www.law.cornell.edu/uscode/text/26/164; IRS Instructions for Schedule A (2025), line 5e and the State and Local Tax Deduction Worksheet (married filing separately: half the threshold, then half of line 9), https://www.irs.gov/instructions/i1040sca (lines 6 to 9); hand calculation in content.mdx; Python 3 check in docs/progress/WP-142/xcheck.py"
    },
    {
      "given": {
        "status": "single",
        "magi": 700000,
        "income": 45000,
        "property": 15000
      },
      "expect": {
        "limit": 10000,
        "phaseDown": 30400,
        "deduction": 10000,
        "overLimit": 50000
      },
      "source": "26 U.S.C. 164(b)(6) and (b)(7) as amended by P.L. 119-21 section 70120 ($40,400 for 2026, less 30% of modified AGI over $505,000, not below $10,000), https://www.law.cornell.edu/uscode/text/26/164 (clause (B)(iii), the $10,000 floor); IRS Instructions for Schedule A (2025), line 5e and the State and Local Tax Deduction Worksheet (married filing separately: half the threshold, then half of line 9), https://www.irs.gov/instructions/i1040sca (line 9); Python 3 check in docs/progress/WP-142/xcheck.py"
    },
    {
      "given": {
        "status": "mfs",
        "magi": 300000,
        "income": 30000,
        "property": 20000
      },
      "expect": {
        "limit": 13075,
        "phaseDown": 7125,
        "deduction": 13075,
        "overLimit": 36925
      },
      "source": "IRS Instructions for Schedule A (2025), line 5e and the State and Local Tax Deduction Worksheet (married filing separately: half the threshold, then half of line 9), https://www.irs.gov/instructions/i1040sca (line 5 $252,500 for 2026, line 10 half of line 9); 26 U.S.C. 164(b)(6) and (b)(7) as amended by P.L. 119-21 section 70120 ($40,400 for 2026, less 30% of modified AGI over $505,000, not below $10,000), https://www.law.cornell.edu/uscode/text/26/164; hand calculation in content.mdx; Python 3 check in docs/progress/WP-142/xcheck.py"
    },
    {
      "given": {
        "status": "single",
        "magi": 120000,
        "income": 6500,
        "property": 4200,
        "personal": 350.5
      },
      "expect": {
        "total": 11050.5,
        "deduction": 11050.5,
        "overLimit": 0,
        "limit": 40400,
        "standard": 16100
      },
      "source": "26 U.S.C. 164(b)(6) and (b)(7) as amended by P.L. 119-21 section 70120 ($40,400 for 2026, less 30% of modified AGI over $505,000, not below $10,000), https://www.law.cornell.edu/uscode/text/26/164; IRS Rev. Proc. 2025-32 section 4.14 (standard deduction $16,100); Python 3 check in docs/progress/WP-142/xcheck.py"
    }
  ],
  "sources": [
    "26 U.S.C. § 164(b)(6) and (b)(7), Legal Information Institute, as amended by P.L. 119-21 section 70120: the applicable limitation amount ($40,000 for 2025, $40,400 for 2026, 101% of the year before through 2029, $10,000 from 2030), the 30% phase-down over the threshold amount ($500,000 for 2025, $505,000 for 2026; half the threshold for a married person filing separately), the $10,000 floor, and modified AGI. https://www.law.cornell.edu/uscode/text/26/164 (retrieved 2026-10-19)",
    "IRS, Instructions for Schedule A (2025), line 5e and the State and Local Tax Deduction Worksheet: lines 1 to 10, where married filing separately uses $250,000 on line 5 and half of line 9 on line 10. https://www.irs.gov/instructions/i1040sca (retrieved 2026-10-19)",
    "IRS, Rev. Proc. 2025-32 (Internal Revenue Bulletin 2025-45), section 4.14: 2026 standard deduction $32,200 joint and surviving spouse, $24,150 head of household, $16,100 single and married filing separately. https://www.irs.gov/irb/2025-45_IRB (retrieved 2026-10-19)"
  ],
  "related": [
    "mortgage-interest-deduction",
    "income-tax",
    "taxable-income",
    "charitable-donation-tax-deduction"
  ],
  "changelog": []
}