SALT Deduction Calculator
Calculate State and Local Tax deduction under $10,000 TCJA cap and compare itemized vs standard deduction.
SALT Taxes Paid
SALT Calculation
State Taxes$$5000.00
Local Taxes$$2000.00
Property Taxes$$8000.00
Total SALT Paid$$15000.00
SALT Cap$$10000 maximum
Allowed SALT Deduction$$10000.00
Disallowed (Lost Deduction)$$5000.00
Deduction Comparison
Total Itemized
$$10000.00
SALT + Other deductions
Standard Deduction
$$15000
Better Option
Standard
Deduction Used
$$15000.00
Tax Impact
Marginal Rate
24%
Tax Savings (if itemize)
$$2400.00
Tax Savings (standard)
$$3600.00
Tax Cost of SALT Cap
$$1200.00
SALT Cap Impact
SALT taxes ($$15000.00) exceed $10,000 cap. Lost deduction: $$5000.00. Tax cost: $$1200.00 at 24% rate. High-tax states (CA, NY, NJ) impacted most. SALT cap expires after 2025 (TCJA provision).
Standard Deduction Better
Standard deduction ($$15000) exceeds itemized ($$10000.00). Use standard deduction. SALT cap makes itemizing less beneficial for many taxpayers. Consider if other deductions (mortgage interest, charitable) change this.
SALT Deduction Components
State and local income taxes OR sales taxes (choose one). Property taxes (real estate and personal property). Total capped at $10,000 for all filing statuses. Cap applies per return, not per person (married couples share one $10,000 cap).
Pass-Through Entity Tax (PTET) Workaround
Some states (CA, NY, NJ, CT) allow pass-through entities to pay state tax at entity level. Entity-level SALT deduction is uncapped for businesses. S Corp, partnership owners benefit. Reduces individual SALT burden. State-specific rules and eligibility requirements vary.
SALT Cap Future
$10,000 cap enacted by TCJA (2018-2025). Expires after 2025 unless extended. Proposed changes: Increase cap to $20,000, eliminate cap, or state-by-state adjustments. Monitor legislation changes for 2026 tax year. High-tax state residents benefit most from cap removal.