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State and Local Tax (SALT) Deduction — Tax Deduction Guide 2026

Deduct up to $10,000 in combined state income taxes (or sales taxes) and local property taxes.

$8,500
Avg Annual Savings
$10,000
Max Deduction
Itemized
Deduction Type
Schedule A
Tax Forms

Eligibility

Taxpayers who pay state income, sales, or property taxes

Tax Savings Calculator

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Estimated Tax Savings

$1,100

At the 22% tax bracket, a $5,000 deduction saves you $1,100 in taxes.

Savings by Tax Bracket

10%
$3,864
12%
$4,636
22%
$8,500
24%
$9,273
32%
$12,364
35%
$13,523
37%
$14,295

Requirements

  • 1Must itemize
  • 2State/local income OR sales tax
  • 3Property taxes on real estate

Common Mistakes to Avoid

  • !Exceeding $10,000 cap
  • !Including foreign taxes here

Required Tax Forms

Schedule A

Calculate Your Full Tax Savings

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Frequently Asked Questions

What is the State and Local Tax (SALT) Deduction?

Deduct up to $10,000 in combined state income taxes (or sales taxes) and local property taxes.

Who is eligible for the State and Local Tax (SALT) Deduction?

Taxpayers who pay state income, sales, or property taxes

How much can I save with the State and Local Tax (SALT) Deduction?

The average tax savings is $8,500 per year. The maximum deduction is $10,000. Your actual savings depend on your tax bracket and qualifying amount.

What forms do I need for the State and Local Tax (SALT) Deduction?

You'll need to file Schedule A to claim this deduction.

What are common mistakes with the State and Local Tax (SALT) Deduction?

Common mistakes include: Exceeding $10,000 cap; Including foreign taxes here. Always double-check requirements before filing.

Is the State and Local Tax (SALT) Deduction worth claiming?

With average savings of $8,500, the state and local tax (salt) deduction is highly valuable. Make sure you meet all eligibility requirements.