SALT Phase-Down Calculator 2026 ($505k+ MAGI)
See how the 2026 $40,400 SALT deduction limit shrinks for high earners above $505,000 of MAGI.
SALT cap phase-down calculator
For 2026 the SALT (state and local tax) deduction is limited to $40,400, but above $505,000 of modified adjusted gross income it phases down — reduced by 30% of the income over $505,000, never falling below the $10,000 floor. The limit reaches that floor at about $606,334 of MAGI. Married filing separately halves every figure: a $20,200 limit, a $252,500 threshold, and a $5,000 floor. SALT only helps if you itemize. Enter your figures above to see your allowed limit.
The One Big Beautiful Bill Act raised the SALT deduction limit from $10,000 to $40,000 for 2025, indexed thereafter — a big win for itemizers in high-tax states. For 2026 the limit is $40,400. But for high earners it is clawed back: once modified adjusted gross income exceeds $505,000, the $40,400 limit is reduced by 30 cents for every dollar of income above that line.
The reduction stops at the old $10,000 floor, so even very high earners keep at least a $10,000 SALT deduction. Married filing separately halves the limit, the threshold, and the floor. The calculator above applies the phase-down and limits your deduction; remember SALT only matters if your total itemized deductions beat the standard deduction — and the limit applies to the deduction, not to the amount of tax you actually paid.
How the high-income phase-down works
Start with the 2026 limit of $40,400. Subtract 30% of the amount your MAGI exceeds $505,000. The result is your SALT limit for the year — but it never drops below $10,000. Because the reduction is 30 cents per dollar, the $30,400 of reducible limit is exhausted once you are about $101,334 over the threshold, i.e., at roughly $606,334 of MAGI.
| MAGI | Amount over $505k | 30% reduction | Your SALT limit |
|---|---|---|---|
| $505,000 | $0 | $0 | $40,400 |
| $545,000 | $40,000 | $12,000 | $28,400 |
| $575,000 | $70,000 | $21,000 | $19,400 |
| $606,334+ | $101,334+ | $30,400+ | $10,000 (floor) |
Only counts if you itemize
SALT is an itemized deduction on Schedule A. If your standard deduction ($16,100 single / $32,200 MFJ / $24,150 head of household for 2026) is larger than your total itemized deductions, the SALT limit doesn't affect you. High earners who own homes in high-tax states are the ones most likely to itemize and hit the limit — and to see the phase-down bite.
Frequently asked questions
At what income does the SALT limit phase down?
For 2026, above $505,000 of modified adjusted gross income ($252,500 if married filing separately). The $40,400 limit is reduced by 30% of the income over that threshold, down to a $10,000 floor ($5,000 if married filing separately). The floor is reached at about $606,334 of MAGI.
Does the SALT limit ever go below $10,000?
No. Even for very high earners, the phase-down stops at the old $10,000 cap — that is the floor. Married filing separately has a $5,000 floor, exactly half.
Do I have to itemize to use the SALT deduction?
Yes. SALT is claimed on Schedule A, so it only helps if your total itemized deductions exceed your standard deduction.
Is the higher SALT limit permanent?
No. It applies for tax years 2025 through 2029 — $40,000 for 2025 and $40,400 for 2026, indexed thereafter — and is scheduled to revert to $10,000 in 2030 unless Congress extends it.
IRS sources & verification
Last reviewed July 12, 2026.