# What is my SALT deduction?

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.

- Page: https://www.acalculator.org/finance/salt-deduction-calculator
- JSON spec: https://www.acalculator.org/finance/salt-deduction-calculator.json
- Version: cb36165d4663

## Default answer

Example with the default inputs (Filing status Married filing jointly, Modified AGI $300,000.00, State and local income taxes $22,000.00, Real estate taxes $26,000.00): With $48,000.00 of state and local taxes and $300,000.00 of modified AGI, your 2026 SALT deduction is $40,400.00.

## Inputs

| Key | Label | Description |
| --- | --- | --- |
| status | Filing status | Your 2026 federal filing status; married filing separately halves the limit and the threshold. |
| magi | Modified AGI | Adjusted gross income (Form 1040 line 11) plus any foreign earned income or Puerto Rico or possession income you excluded. |
| income | State and local income taxes | State and local income taxes you paid in 2026, or general sales taxes if you deduct those instead (line 5a). |
| property | Real estate taxes | State and local real estate taxes on property you own, not foreign real estate taxes (line 5b). |
| personal | Personal property taxes (optional) | State and local taxes based on the value of personal property, such as a car (line 5c). |
| other | Other itemized deductions (optional) | Your other Schedule A deductions, such as mortgage interest and gifts to charity, to compare with the standard deduction. |

## Outputs

| Key | Label | Description |
| --- | --- | --- |
| deduction | SALT deduction | The smaller of your state and local taxes and your 2026 SALT limit (Schedule A line 5e). |
| total | State and local taxes paid | Income or sales taxes + real estate taxes + personal property taxes (line 5d). |
| limit | Your 2026 SALT limit | $40,400 − 30% of modified AGI over $505,000, not below $10,000; married filing separately: half of that, with a $252,500 threshold. |
| phaseDown | Cut by the income phase-down | How much the phase-down took off the full limit ($40,400, or $20,200 married filing separately). |
| overLimit | Taxes over the limit | State and local taxes you paid that you cannot deduct: taxes paid − the SALT deduction. |
| itemized | Itemized deductions | The SALT deduction + your other itemized deductions (shown when you type them). |
| standard | 2026 standard deduction | The basic standard deduction for your filing status, to compare with itemizing. |

## 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.

## Worked examples

1. status = mfj, magi = $300,000.00, income = $22,000.00, property = $26,000.00 gives total = $48,000.00, limit = $40,400.00, phaseDown = $0.00, deduction = $40,400.00, overLimit = $7,600.00, standard = $32,200.00. 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).
2. status = mfj, magi = $600,000.00, income = $28,000.00, property = $12,000.00, other = $25,000.00 gives limit = $11,900.00, phaseDown = $28,500.00, deduction = $11,900.00, overLimit = $28,100.00, itemized = $36,900.00. 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).
3. status = single, magi = $700,000.00, income = $45,000.00, property = $15,000.00 gives limit = $10,000.00, phaseDown = $30,400.00, deduction = $10,000.00, overLimit = $50,000.00. 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).
4. status = mfs, magi = $300,000.00, income = $30,000.00, property = $20,000.00 gives limit = $13,075.00, phaseDown = $7,125.00, deduction = $13,075.00, overLimit = $36,925.00. 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.
5. status = single, magi = $120,000.00, income = $6,500.00, property = $4,200.00, personal = $350.50 gives total = $11,050.50, deduction = $11,050.50, overLimit = $0.00, limit = $40,400.00, standard = $16,100.00. 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).

## FAQ

### How do you calculate the SALT deduction?

Add your state and local income taxes (or sales taxes), real estate taxes and personal property taxes. Your deduction is that total or your 2026 limit, whichever is smaller. The limit is $40,400, cut by 30% of modified AGI over $505,000, but never below $10,000. With $48,000 of taxes and $300,000 of modified AGI, the deduction is $40,400.

### What is the SALT limit for 2026?

The law sets $40,400 for 2026, up from $40,000 for 2025. It rises 1% a year through 2029 and falls back to $10,000 from 2030 (26 U.S.C. 164(b)(7), as amended by P.L. 119-21). Married people filing separately get half.

### How does the income phase-down work?

For every dollar of modified AGI over $505,000, the limit falls by 30 cents, until it reaches $10,000. A joint return with $600,000 of modified AGI is $95,000 over, so the limit is 40,400 − 28,500 = $11,900. Above $606,333.33 of modified AGI the limit stays at $10,000.

### How does married filing separately work?

The IRS worksheet uses half the threshold ($252,500 for 2026), takes 30% of the modified AGI above it off $40,400, keeps at least $10,000, and then halves the result. So the limit runs from $20,200 down to $5,000.

### Which taxes count toward the SALT deduction?

State and local income taxes or general sales taxes (you pick one), state and local real estate taxes, and personal property taxes based on value, such as part of some car registration fees. Foreign real estate taxes, federal taxes, and taxes on a business or rental property you report on Schedule C, E or F do not count toward the limit here.

### Should I itemize to get the SALT deduction?

Only if all your itemized deductions add up to more than your standard deduction: $32,200 married filing jointly, $16,100 single or married filing separately, and $24,150 head of household for 2026. Type your other itemized deductions, such as mortgage interest and gifts to charity, to compare.

### What is modified AGI here?

Your adjusted gross income from Form 1040 line 11, plus any foreign earned income or housing amounts you excluded (Form 2555) and income from Puerto Rico or a U.S. possession that you excluded. For most people it is simply their AGI.

## 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)