The state and local tax deduction is capped — and for 2025 that cap is $40,000 ($20,000 MFS), phasing down above $500,000 (joint) / $250,000 (single) but never below $10,000. Enter your taxes and income to see exactly how much you can deduct.
🏠 Your State & Local Taxes
💰 Your SALT Deduction
SALT Taxes Paid$10,000
Your SALT Cap$40,000
Deductible Amount$10,000
Amount Disallowed$0
Income Phase-Down AppliedNo
📊 Worked Examples
Scenario
SALT Paid
MAGI (status)
Deduction
Single, modest taxes, under the cap
$10,000
$120,000 (Single)
$10,000
MFJ in a high-tax state, under the cap
$37,000
$300,000 (MFJ)
$37,000
Single above $250k, 30% phase-down applied
$35,000
$300,000 (Single)
$25,000
MFJ at $600k, phased down to the $10k floor
$45,000
$600,000 (MFJ)
$10,000
Married filing separately
$22,000
$200,000 (MFS)
$20,000
The 2025 cap is $40,000 ($20,000 for MFS). For 2025 only it phases down by 30¢ per $1 of MAGI above $500,000 (MFJ) / $250,000 (single), but never below $10,000. SALT only helps if you itemize — if your total itemized deductions are less than the standard deduction, the cap is moot.
📖 How the SALT Deduction Cap Works (Schedule A)
The state and local tax (SALT) deduction lets itemizers write off state income tax (or state sales tax, if you elect it), local income tax, and property tax on Schedule A of Form 1040. Since the 2017 Tax Cuts and Jobs Act, the combined deduction has been capped, and the One Big Beautiful Bill Act raised that cap for 2025.
Key rules for 2025
The cap: $40,000 combined ($20,000 married filing separately), subject to an income limitation but never reduced below $10,000.
The phase-down: the $40,000 limit shrinks by 30¢ for every $1 of MAGI over $500,000 (joint) or $250,000 (single/HOH), hitting the $10,000 floor at $600,000 MFJ or $350,000 single.
What counts: state/local income tax, state/local sales tax (your choice, not both), real estate tax, and personal property tax. Federal income tax, Social Security tax, transfer taxes, and HOA fees do not count.
Itemize first: SALT is only valuable if you itemize. For 2025 the standard deduction is $15,000 single / $30,000 MFJ, so many filers get no benefit from SALT at all.
Business owners: the entity-level SALT cap workaround (PTET) used by many states lets pass-through owners sidestep the individual cap; that election is separate from this calculator.
How to use it
Enter the state and local income (or sales) tax and property tax you paid, your filing status, and your MAGI. The calculator returns the smaller of what you paid and your personal cap, plus the amount disallowed. Compare the result against your standard deduction to decide whether itemizing is worth it.
Frequently Asked Questions
What is the SALT deduction cap for 2025?
The 2025 cap is $40,000 combined for single and joint filers ($20,000 for married filing separately). It phases down by 30¢ per dollar of MAGI above $500,000 (joint) or $250,000 (single), but never drops below $10,000.
Do I have to itemize to claim SALT?
Yes. The SALT deduction is an itemized deduction reported on Schedule A. If your total itemized deductions are lower than the standard deduction ($15,000 single / $30,000 joint for 2025), you take the standard deduction instead and get no separate SALT benefit.
Can I deduct both state income tax and state sales tax?
No. You must choose one or the other. You can add property tax on top of whichever you choose, but income tax and sales tax cannot both be claimed in the same year.
Does the cap apply to property tax separately?
No. Income tax (or sales tax) and property tax share one combined limit. Once the combined amount hits your cap, every additional dollar of either type is disallowed.
What is the PTET workaround?
Many states now let pass-through entities (S-corps, partnerships) pay state tax at the entity level and deduct it on the business return, bypassing the individual SALT cap. Owners then report a reduced K-1. Check whether your state has adopted a PTET election.
⚠️ Important: This calculator applies the 2025 SALT rules: a $40,000 cap ($20,000 MFS) with a 30% phase-down above $500,000 MFJ / $250,000 single and a $10,000 floor. SALT only reduces tax if you itemize and only up to your marginal rate. This is an educational estimate, not tax advice — confirm against the Schedule A instructions and your state's rules.