The SALT Deduction Cap Is Now $40,000: What It Means for You

Описание: The limit on deducting state and local taxes (SALT) just got four times bigger. Here's what the One Big Beautiful Bill Act changed, in simple terms.

In this video:
What SALT covers: state and local income tax (or sales tax instead), plus property taxes
The old cap was $10,000. It's now $40,000 for 2025, rising 1% a year through 2029 ($40,400 for 2026)
The catch: if your modified adjusted gross income is over $505,000 (2026; $500,000 in 2025), the cap shrinks by 30% of the amount over, but never below $10,000
Married filing separately: $20,000 (2025) / $20,200 (2026), threshold $252,500, floor $5,000
It only helps if you itemize and your itemized deductions beat your standard deduction ($16,100 single, $32,200 joint for 2026)
It's temporary: in 2030 the cap drops back to $10,000

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Sources: 26 U.S.C. §164(b)(6)–(7) as amended by the One Big Beautiful Bill Act §70120; IRS 2026 Form 1040-ES; IRS 2025 Schedule A instructions; IRS Topic no. 503 (Deductible taxes); Rev. Proc. 2025-32.

Disclaimer: This video is general education, not tax advice for your situation. Tax rules can change and depend on your facts. Talk with a tax professional about your own return.

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