Data verified: Aug 2026 · Source: IRC §164(b)(6) as amended by P.L. 119-21 (OBBBA)
This SALT deduction calculator shows how much of your state and local tax payment survives the cap once the 30% phaseout starts clawing it back.
Your details
Your allowed SALT deduction
—
Base cap (—, —)
—
Phaseout reduction
—
Floor applied
—
SALT actually paid
—
Deductible amount
—
⚠You are inside the torpedo zone. Each extra $1 of MAGI costs you 30¢ of deduction — an effective marginal rate of about — on income between — and —.
⚠The — cap and threshold apply the statutory 1% escalator and have not yet been confirmed by the IRS.
Deduction vs. MAGI
MAGI
Ad
How this is calculated
The One Big Beautiful Bill Act raised the SALT cap well above the old $10,000 limit, but attached a 30% phaseout above a MAGI threshold. For every dollar of MAGI over that threshold, thirty cents of cap disappears. The cap never falls below a $10,000 floor, and you can never deduct more than you actually paid.
The effect is a band of income — the torpedo zone — where your true marginal rate is far above your nominal bracket, because each extra dollar earned is taxed twice: once directly, and again through the deduction it destroys.
Shown for 2026, married filing jointly. Married filing separately halves every dollar figure: $20,200 cap, $252,500 threshold, $5,000 floor. The cap reverts to a flat $10,000 in 2030 unless Congress acts.
Worked example
A married couple filing jointly in 2026 has MAGI of $560,000 and paid $32,000 in state and local taxes.
Excess MAGI over $505,000$55,000
Phaseout: 30% × $55,000−$16,500
Cap after phaseout ($40,400 − $16,500)$23,900
Allowed deduction (lesser of cap and $32,000)$23,900
Where the zone starts and ends
For 2026 married filing jointly the phaseout runs from $505,000 of MAGI up to $606,333, the point at which the cap has fallen all the way to the $10,000 floor and stops dropping. Above that, extra income no longer costs you any deduction. Both endpoints rise roughly 1% a year through 2029.
What counts as SALT
State and local income tax or general sales tax — whichever is larger, not both — plus real property tax and personal property tax. Note that this deduction only helps if you itemize; if your total itemized deductions come to less than the standard deduction, the cap is irrelevant to you.
Frequently asked questions
What is the SALT cap torpedo?
It is the band of income where the 30% phaseout stacks on top of your ordinary tax bracket. Inside it, every extra dollar is taxed twice over: once directly at your marginal rate, and again through the thirty cents of deduction it destroys. A raise or a capital gain landing in that band can therefore be taxed far above your nominal rate.
Where does the phaseout start and end?
For 2026 it runs from $505,000 of MAGI up to roughly $606,333 for a joint return, which is the point where the cap has fallen all the way to the $10,000 floor and stops dropping. Above that, extra income costs you no further deduction. Both endpoints rise about 1% a year through 2029, and married filing separately halves them.
Does the cap ever go below $10,000?
No. The phaseout stops once the cap reaches the $10,000 floor, or $5,000 if you are married filing separately, no matter how high your MAGI climbs. That floor is why the torpedo zone has a defined end rather than continuing indefinitely, and it is also the amount the cap reverts to entirely in 2030 under current law.
How is MAGI different from AGI here?
For this provision MAGI is effectively your AGI computed without regard to this deduction, with certain foreign-income exclusions added back. For the overwhelming majority of domestic filers the two figures are identical, so you can use AGI. It is a different definition from the MAGI used for ACA subsidies or for Medicare IRMAA, which is a common source of confusion.
Can I reduce the hit?
Common levers are timing income across tax years, maxing pre-tax retirement contributions, bunching charitable gifts into a single year, and pass-through entity tax elections where your state offers them. A PTET election is often the most powerful, because it moves the state tax off your personal return entirely. Talk to a tax professional before acting on any of them.
What happens in 2030?
Under current law the cap reverts to a flat $10,000 with no phaseout at all, which is where it sat before OBBBA. That reversion is written into the statute, so it applies automatically unless Congress passes something new before then. Anyone planning multi-year deduction timing should treat 2029 as the last year of the higher cap.
IRC §164(b)(6) as amended by P.L. 119-21 (OBBBA) · IRS Rev. Proc. 2025-32 · SSA Contribution & Benefit Base
Disclaimer
Estimates for general information only, not tax advice. Figures for 2027–2029 apply the statutory 1% indexing and may be superseded by IRS guidance. Consult a qualified tax professional.