The One Big Beautiful Bill Act raised the SALT deduction cap from $10,000 to more than $40,000 for 2025 through 2029 — a major change for homeowners in high-tax states. But the bigger cap phases out for high earners and disappears in 2030. Here is who benefits, how the math works, and why the next few years may be the best window to itemize.

What the SALT cap actually limits

The SALT deduction covers the state and local taxes you pay: the larger of your state/local income or sales tax, plus property tax. Before 2018 it was unlimited; the Tax Cuts and Jobs Act capped it at $10,000. The OBBBA raised the cap to $40,000 in 2025 and $40,400 in 2026, indexed about 1% a year through 2029. For 2026, married filing separately starts at $20,200. Above $252,500 of MAGI, the cap falls 15¢ per $1 until it reaches $5,000 at about $353,833 of MAGI.

Elect income taxes or general sales taxes, never both. Enter eligible personal amounts only, after their own rules. Sales tax can use eligible actual receipts or the IRS optional tables; this calculator does not estimate those tables. Exclude business or rental taxes and amounts deducted elsewhere. Eligible personal real-estate and value-based personal property taxes only. Exclude business or rental property taxes, service charges and nondeductible assessments.

Compare the statutory cap after the MAGI phase-down with the deduction limited by your entered eligible personal taxes. These SALT amounts are before Section 68 and AMT; charity and other itemized deductions are separate. The slider changes MAGI throughout the calculator. Use arrow keys to inspect the next or previous numeric point, or Home and End for the range limits. The buttons select the exact phase-down threshold or floor.

The MAGI phase-down for high earners

For 2026, the cap drops 30¢ per $1 above $505,000 of MAGI until it reaches $10,000. For married filing separately, it drops 15¢ per $1 above $252,500 of MAGI until it reaches $5,000.

Reduce the full cap by 30% of MAGI above the filing-status threshold, with a $10,000 floor. For married filing separately, halve that result after using the separate-filer threshold. This makes the effective reduction 15¢ per $1 of excess MAGI.

Does itemizing still beat the standard deduction?

Compare usable SALT, deductible mortgage interest and deductible charitable gifts with the basic standard deduction. For 2026, the itemized charitable deduction generally includes only otherwise deductible contributions above 0.5% of the contribution base. Nonitemizers may separately deduct eligible cash gifts up to $1,000, or $2,000 when filing jointly. The comparison includes this amount only when entered. A spouse who itemizes on a separate return makes the standard deduction unavailable. Other charitable limits and carryovers require separate review.

This comparison assumes eligibility for the full basic standard deduction. Dependent, nonresident and dual-status rules require separate review. Use the IRS age and blindness tests for the selected year, including death-year rules. The separate Schedule 1-A senior deduction is excluded.

This compares modeled regular-tax deductions, not tax savings or a refund. AMT is not calculated: SALT and the standard deduction are added back for AMT, so a larger regular-tax deduction can still be the wrong tax choice. Compare complete regular-tax and AMT liabilities before deciding. Section 68 is optional here; excluded mode is a comparison before that limit. Supported Section 68 thresholds are for 2026 only.

Each row reuses your entered MAGI, elected tax and eligible property tax without predicting growth. The source is IRC 164(b)(6)–(7), as amended by P.L. 119-21 section 70120. The personal SALT amount above the cap does not create a carryforward.

Known SALT cap and paid-tax arithmetic remain visible when the optional itemized comparison is incomplete. Complete the highlighted comparison context before using its verdict or Share, Copy and CSV reports. Amounts are annual USD for the selected calendar tax year. SALT MAGI is AGI plus income excluded under IRC 911, 931 or 933. Enter it separately from the charitable contribution base and pre-itemized taxable income.

Why 2029 may be the last good year

Under current law the expanded cap is temporary. In 2030 it reverts to $10,000 ($5,000 MFS) with no income phase-down — the 'SALT cliff.' For anyone whose SALT is well above $10,000, the deduction drops sharply that year. If you have flexibility on when you pay deductible taxes, the 2025–2029 window is when the larger cap is worth the most. Confirm the current-year figures with the IRS, since Congress could extend or change the rules before 2030.