How to Claim the
SALT Deduction in 2026
The new $40,000 cap is in effect — but you only benefit if you claim it correctly. Here’s exactly what to do on your 2025 federal tax return, which is due April 15, 2026.
First: Should You Itemize or Take the Standard Deduction?
The SALT deduction is only available if you itemize your deductions on Schedule A. This means you need to check whether your total itemized deductions — including SALT, mortgage interest, and charitable contributions — are greater than your standard deduction.
For 2025 (filed in 2026), the standard deduction is $16,100 for single filers and $32,200 for married couples filing jointly. If your itemized deductions exceed these amounts, itemizing makes sense. If you’re a homeowner in a high-tax state, this is almost always the case.
How to Claim Your SALT Deduction — Step by Step
You need three things: your W-2 (shows state income tax withheld in Box 17), your property tax bill or mortgage statement (shows property taxes paid), and any local income tax records if you live in a city like New York City or Philadelphia.
Add up: state income tax paid + local income tax paid + property taxes paid. This is your total SALT amount. If it exceeds $40,000, you can only deduct $40,000. If it’s less, you deduct the full amount.
Schedule A is where all itemized deductions live. Under “Taxes You Paid” (Lines 5a through 5e), enter your state and local income taxes on Line 5a, and your property taxes on Line 5b. The total flows to Line 5e, which is automatically capped at $40,000 under the 2026 rules.
While you’re on Schedule A, also include your mortgage interest (from Form 1098), charitable contributions, and any other qualifying deductions. These combine with your SALT deduction to form your total itemized deduction amount.
The total from Schedule A flows to Line 12 of Form 1040, reducing your taxable income. From there, your tax software calculates your tax liability automatically. File by April 15, 2026 — or October 15 if you file an extension.