SALT Deduction Calculator
See Your Exact Savings
Enter your state and local taxes below. We’ll show you exactly how much you can deduct under the new $40,000 cap — and how much you’ll save on your federal taxes.
What the New SALT Cap Means in Real Dollars
The jump from $10,000 to $40,000 is dramatic — but what does it actually mean for your wallet? Here are real examples across different states and income levels.
| Profile | SALT Taxes Paid | Old Deduction | New Deduction | Tax Savings |
|---|---|---|---|---|
| NY homeowner, 24% bracket | $28,000 | $10,000 | $28,000 | +$4,320 |
| CA professional, 32% bracket | $35,000 | $10,000 | $35,000 | +$8,000 |
| NJ family, 22% bracket | $22,000 | $10,000 | $22,000 | +$2,640 |
| IL earner, 24% bracket | $40,000+ | $10,000 | $40,000 | +$7,200 |
What Taxes Can You Include in Your SALT Deduction?
The SALT deduction covers three main types of taxes you pay to state and local governments. Understanding what qualifies is the first step to maximizing your deduction.
State income taxes — the income tax you pay to your state government each year, shown on your W-2 or state return. Local income taxes — city or county income taxes, common in New York City, Philadelphia, and other municipalities. Property taxes — the annual taxes you pay on your home or other real estate, shown on your mortgage statement or county tax bill.
Note that you cannot deduct federal income taxes, sales taxes (if you deduct state income tax), or taxes on foreign property. You also cannot deduct taxes paid on rental or business property under the personal SALT deduction — those go on different schedules.
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