The state and local tax deduction got four times bigger in 2026, and most people have no idea whether it helps them.
The calculator above takes the taxes you paid this year, your income and your other deductions, and shows three things: how much of your state and local tax you can deduct, if itemizing is worth it at all, and if paying a tax bill early in December would lower your federal tax.
How the SALT cap works in 2026
SALT stands for state and local taxes. If you itemize, you can deduct state and local income tax, or general sales tax instead, plus real estate tax and value based personal property tax, like the yearly tax some states charge on cars.
From 2018 through 2024 the total deduction was capped at $10,000. The tax law signed in July 2025 raised the limit:
- $40,000 for 2025
- $40,400 for 2026
- Rising 1% a year through 2029
- Back to $10,000 in 2030 unless Congress changes it
Married couples filing separately get half: $20,200 each in 2026.
High earners get less. Once modified adjusted gross income passes $505,000 in 2026 ($252,500 married filing separately), the cap shrinks by 30% of every dollar above that line. It never goes below $10,000, or $5,000 for separate filers. For most taxpayers modified AGI is the same as AGI. It differs only for people who exclude certain foreign income.
Examples at different incomes
A single teacher earning $70,000 pays $3,500 in state income tax and rents an apartment. Her SALT total is $3,500, far under the cap. With no mortgage, her itemized deductions would be around $4,000, so the $16,100 standard deduction is much better. The SALT change does nothing for her, and that is true for most renters.
A married couple earning $180,000 in a high tax state pays $11,000 in state income tax and $13,000 in property tax. Under the old cap they could deduct $10,000. In 2026 they can deduct all $24,000. Add $12,000 of mortgage interest and $3,000 to charity and they have $39,000 of itemized deductions, $6,800 more than the $32,200 standard deduction. Under the old rules they would have taken the standard deduction.
A couple with $560,000 of income pays $45,000 in state and local tax. Their income is $55,000 over the threshold, so the cap drops by $16,500 to $23,900. They lose $21,100 of their deduction to the cap.
A couple with $650,000 of income gets the $10,000 floor, the same as before the law changed.
The standard deduction for 2026
You only benefit from SALT if your total itemized deductions beat the standard deduction. For 2026 that is:
- Single or married filing separately: $16,100
- Head of household: $24,150
- Married filing jointly: $32,200
Each person 65 or older, or blind, adds $2,050 if unmarried or $1,650 if married. The calculator adds these when you choose the count.
The separate $6,000 deduction for people 65 and older is not part of the standard deduction and is available to itemizers and non itemizers alike, so it does not change which one is better. Our senior deduction guide explains who gets it.
What to enter in each box
Income tax paid in 2026 is cash basis. Include state and local income tax withheld from paychecks this year, estimated payments you made during 2026, and any balance you paid in April 2026 for your 2025 return. If you got a state refund for 2025, it does not reduce this number, though it may be taxable on your federal return if you itemized last year.
If you live in a state with no income tax, like Texas or Florida, you can deduct sales tax instead. The IRS sales tax calculator on IRS.gov gives an estimate based on your income and ZIP code, and you can add tax paid on a car or boat bought during the year.
Property tax is what you paid during the year. If your mortgage company pays it from escrow, use the amount the servicer paid to the county, usually shown on Form 1098.
Other itemized deductions are mortgage interest, charitable gifts and medical costs above 7.5% of your AGI. Leave out anything you are not sure you can claim.
Should you prepay before December 31?
The prepayment box answers this. Enter the amount you are thinking of paying early, like a property tax installment due in February or a fourth quarter state estimated payment due in January.
Prepaying helps only when all three of these hold:
1. You will itemize in 2026, or the prepayment pushes you over the standard deduction. 2. You still have room under your SALT cap. 3. The tax has been assessed. Property tax paid ahead of an assessment does not count for 2026.
Our longer guide on prepaying property taxes before December 31 walks through escrow, state estimates and when prepaying only shifts a deduction from one year to the next.
Why income near $505,000 needs care
Inside the phase down range, every $1,000 of extra income cuts the cap by $300. For someone in the 35% bracket, that $1,000 effectively costs about $455 in federal tax instead of $350.
That makes income timing worth a look. A larger pretax 401(k) deferral, a bonus paid in January, or holding a winning stock until the new year can all keep income lower and the cap higher. Business owners in many states can also elect a pass through entity tax, which is paid by the business and is not limited by the individual SALT cap.
These moves interact with each other and with the alternative minimum tax. The calculator does not include AMT, and state and local taxes are not deductible for AMT purposes, so a tax professional is worth it if your income is in this range.
Limits of this calculator
- It estimates federal tax for 2026 only.
- It does not compute AMT or state income tax.
- It assumes all taxes entered are deductible. Fees for services like water or trash pickup, foreign property tax and federal taxes are not.
- The tax savings shown use a flat rate for illustration. Your actual saving depends on your bracket.
For related year end planning, see our tax underpayment penalty calculator if a prepaid state estimate changes what you owe the IRS, and our list of year end tax deadlines.
This page is for information only and is not tax advice.