2026 SALT Cap Calculator
2026 SALT Deduction Cap Calculator
Calculate your gain under the new SALT cap. Specifically optimized for New York and California taxpayers affected by the 2026 tax law changes.
Estimated Tax Savings: $
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What is the 2026 SALT deduction cap?
The new SALT deduction cap for 2026 is $40,400. This allows taxpayers in high-tax states to deduct significantly more state and local taxes from their federal returns.
How do I calculate salt cap loss or gain?
To calculate your gain, subtract the old $10,000 limit from your total eligible taxes (up to $40,400) and multiply by your federal tax bracket.
Does this apply to NY and CA residents?
Yes, California and New York residents benefit most because their combined property and state income taxes often exceed the previous $10,000 threshold.
How does the SALT cap phase-out calculator work for high earners?
The $40,400 SALT deduction limit begins to phase out once your Modified Adjusted Gross Income (MAGI) exceeds $505,000. For every dollar earned above this threshold, the cap is reduced by 30 cents, though it will not fall below the $10,000 floor.
What is the difference between the SALT cap 2025 calculator and 2026?
The 2025 SALT cap was $40,000. For 2026, the IRS increased the deduction to $40,400 to account for inflation. Our calculator uses the most recent 2026 data to ensure you calculate your gain accurately.
Can business owners calculate gain under the new SALT cap rules?
Yes. Business owners in high-tax states like California and New York can calculate their gain using this tool. Additionally, many can still utilize PTET workarounds to pay state taxes at the entity level and bypass federal limits.
How can I calculate salt cap loss for future years?
While the current $40,400 cap provides significant relief, it is temporary. Taxpayers should calculate potential salt cap loss for years after 2029, as the deduction is currently scheduled to revert to $10,000 in 2030.
Is there an income limit for the $40,400 SALT deduction?
Yes. The expanded cap begins to phase out if your Modified Adjusted Gross Income (MAGI) exceeds $505,000. The deduction is reduced by 30 cents for every dollar over this limit but will not drop below the original $10,000 floor.
Can I still use the PTET workaround in 2026?
Yes. The 2026 tax law changes did not eliminate State-level Pass-Through Entity Tax (PTET) workarounds. Business owners in NY and CA can still pay state taxes at the entity level to potentially bypass the federal SALT cap.
What was the SALT cap in 2025?
For the 2025 tax year, the cap was $40,000. The 2026 increase to $40,400 reflects a standard 1% inflation adjustment.
What happens to the SALT cap after 2029?
The current expanded cap is temporary. Unless Congress acts, the SALT deduction limit is scheduled to revert to the original $10,000 starting in the 2030 tax year.
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