See how the SALT cap changes with MAGI.
Separate qualifying taxes from the income-dependent cap. Follow the phasedown, its floor, and the distinct married-filing-separately sequence.
A cap is a ceiling, not a deduction promise.
The second amount is min(entered eligible taxes, applicable cap). It is before other itemized-deduction restrictions and does not determine whether itemizing is beneficial.
View curve values as a table
| MAGI | Applicable cap | Eligible taxes after cap |
|---|---|---|
| $455,000 | $40,400 | $40,400 |
| $505,000 | $40,400 | $40,400 |
| $530,333.33 | $32,800 | $32,800 |
| $555,666.67 | $25,200 | $25,200 |
| $581,000 | $17,600 | $17,600 |
| $606,333.33 | $10,000 | $10,000 |
| $656,333.33 | $10,000 | $10,000 |
Show the exact sequence
- Start with the full statutory amount, including for MFS: $40,400.
- Use the applicable MAGI threshold: $505,000.
- Excess MAGI = max(0, $550,000 − $505,000) = $45,000.
- Full-amount reduction = 30% × $45,000 = $13,500.
- Apply the full-amount floor: max($10,000, $40,400 − $13,500) = $26,900.
- No MFS halving applies: $26,900.
- min($50,000, $26,900) = $26,900.
MFS detail: the IRS worksheet halves the post-phasedown result. Do not reduce an already-halved cap by 30% of the same MAGI excess; that would reduce the cap too quickly.
Figures are displayed to cents; tax-return whole-dollar rounding is not modeled.
The year matters
| Year | Full cap | Full threshold | MFS initial cap | MFS threshold |
|---|---|---|---|---|
| 2025 | $40,000 | $500,000 | $20,000 | $250,000 |
| 2026 | $40,400 | $505,000 | $20,200 | $252,500 |
| 2027 | $40,804 | $510,050 | $20,402 | $255,025 |
The full floor is $10,000; MFS receives half the post-phasedown amount, so its floor is $5,000. The 2027 cap and threshold are 101% of their 2026 amounts under §164(b)(7), not a CPI projection. For these three years, those scheduled parameters are exact whole-dollar amounts.
What still needs a separate analysis
This calculation isolates one federal itemized-deduction cap. It does not determine which taxes qualify, who paid them, timing, refund recoveries, standard-versus-itemized deductions, AMT, state treatment, pass-through entity tax elections, or overall tax savings. It does not treat an amount above this cap as a carryforward.
Other itemized-deduction restrictions still apply. In particular, §68 applies an additional overall limitation for taxable years beginning after 2025; this tool does not calculate that reduction. The amount surviving the SALT cap is not automatically the final deduction on a return.
Primary sources and review date
- Official U.S. Code §164(b)(6), (7): cap, phasedown, MAGI, and MFS ↗
- IRS 2025 Schedule A instructions: State and Local Tax Deduction Worksheet, lines 1–10 ↗
- IRS Publication 505 (2026): 2026 SALT cap and MAGI threshold ↗
- Official U.S. Code §68: separate overall itemized-deduction limitation ↗
Reviewed November 15, 2026. Parameters: enacted §164 schedule as amended by Public Law 119-21; 2027 values calculated from that schedule. Inputs stay on this page and are not sent or stored.