SALT Deduction Calculator
Compare the standard deduction with itemized deductions for 2025 or 2026. Estimate the state and local tax deduction cap, medical expense floor, mortgage interest, charitable giving, taxable income, and federal tax savings from itemizing.
Reviewed data sources
Reviewed May 26, 2026. Calculations use current public tax guidance and published source data.
1. Enter the tax scenario
Use the filing status, income type, state, payroll, deduction, credit, or transaction details that match the real case.
2. Review assumptions
Check the visible formula context, source notes, related calculators, and federal or state limits before relying on the estimate.
3. Verify before filing
Confirm final tax positions with IRS guidance, state revenue agencies, payroll records, brokerage forms, or a qualified tax professional.
Quick answer
Itemize only when Schedule A beats your standard deduction
This calculator adds deductible SALT, mortgage interest, charitable giving, and medical expenses above 7.5% of AGI, then compares that total with the standard deduction for your filing status. For SALT, it uses the larger of state/local income tax or sales tax by default, adds property tax, and applies the selected year's federal cap.
2026 SALT cap
$40,400 for most filers, $20,200 for MFS, before MAGI phase-down.
Medical floor
Only unreimbursed medical expenses above 7.5% of AGI are included.
Tax savings
Estimated with federal bracket math, not a flat marginal-rate shortcut.
Used for the medical floor, SALT phase-down, taxable income, and federal tax estimate.
Enter qualified deductible interest after any mortgage debt-limit worksheet.
SALT Election
Better Choice
Standard
Chosen Deduction
$32,200
Deduction Difference
-$32,200
Federal Tax Difference
$0
Standard deduction
$32,200
2026 Married Filing Jointly
Itemized deduction
$0
SALT + interest + charity + medical
Estimated federal tax
$0
Before credits, AMT, NIIT, and payroll tax
Schedule A Breakdown
| Line Item | Amount | Assumption |
|---|---|---|
| Income tax used for SALT | $0 | Income tax or sales tax, not both |
| Property tax added to SALT | $0 | Real property tax input |
| SALT before federal cap | $0 | Election plus property tax |
| SALT cap after phase-down | $40,400 | No MAGI phase-down applied |
| Allowed SALT deduction | $0 | No SALT lost to cap |
| Mortgage interest entered | $0 | Assumes qualified deductible interest |
| Charitable giving entered | $0 | No charity cap modeled |
| Medical floor | $0 | 7.5% of AGI |
| Allowed medical deduction | $0 | Full amount clears floor |
| Total itemized deductions | $0 | Compared with $32,200 standard deduction |
Taxable Income Comparison
Standard deduction
ChosenItemized deductions
CompareMarginal-rate caveats
Implied savings rate
0.0% of the extra deduction value.
Bracket crossing
Savings can be lower than one top bracket when deductions cross into a lower bracket.
High-income limit
No 37% bracket flag from current inputs.
How the SALT Deduction Calculator Works
Schedule A does not let taxpayers stack every state and local tax payment without limits. First, you choose either state and local income taxes or general sales taxes. Then you add real property taxes. The combined amount is subject to the federal SALT cap. For 2026, this calculator starts with the IRS-corrected $40,400 cap, or $20,200 for married filing separately, then applies the visible MAGI phase-down assumption.
After SALT, the calculator adds mortgage interest, charitable contributions, and deductible medical expenses. Medical expenses only count above 7.5% of AGI. It then compares the itemized total with the standard deduction. If itemizing wins, the calculator estimates federal income tax savings by running taxable income through the selected year's brackets.
What to Verify Before Filing
- Mortgage interest: Form 1098 interest can be limited when mortgage debt exceeds the federal acquisition-debt cap or loan proceeds were not used to buy, build, or improve the home. See the mortgage interest deduction guide.
- Charitable giving: cash and noncash gifts have substantiation rules and AGI percentage limits. Large noncash gifts may require Form 8283 or an appraisal. See the charitable donation deduction guide.
- Medical expenses: only unreimbursed qualifying costs above 7.5% of AGI count. See the medical expense deduction guide.
- State and local taxes: use taxes actually paid during the tax year, and do not include federal income tax, FICA, HOA fees, transfer taxes, or charges for local benefits.
When Standard Deduction Usually Wins
The standard deduction often wins for renters, homeowners with paid-off or small mortgages, filers with modest charitable giving, and households whose medical expenses do not clear the 7.5% AGI floor. Itemizing is more likely to win for homeowners with large qualified mortgage interest, high SALT payments, major medical years, or planned charitable bunching. For a broader planning framework, read standard deduction vs itemized deductions.
This calculator estimates federal income tax only. To see how the chosen deduction interacts with withholding, credits, and refund or balance due, use the tax refund estimator. To estimate real property tax before using the SALT calculator, use the property tax calculator.
Frequently Asked Questions
What goes into the SALT deduction?
The federal SALT deduction combines state and local income taxes or general sales taxes, plus real property taxes and eligible personal property taxes. This calculator models income tax or sales tax, then adds property tax and applies the federal SALT cap.
Can I deduct both state income tax and sales tax?
No. Schedule A lets you deduct state and local income taxes or general sales taxes, not both. The calculator can automatically use the larger amount, but you can force either choice if you want to match a specific return.
Why is my 2026 SALT cap below $40,400?
IRS guidance says the 2026 SALT limit is $40,400, or $20,200 for married filing separately, and the limit is reduced above the modified AGI threshold but not below $10,000, or $5,000 for married filing separately. This calculator applies the 30% phase-down shown in Schedule A worksheet logic and displays the assumed cap.
Does every extra itemized deduction save tax at my marginal bracket?
Not always. Extra deductions can cross bracket boundaries, and high-income taxpayers in the 37% bracket may face additional limits on the tax benefit of itemized deductions. The calculator uses bracket math for a planning estimate and flags that high-bracket caveat.
What does this calculator not model?
It does not model AMT, the 37% bracket itemized-deduction benefit limitation, charity AGI percentage limits, mortgage debt-limit worksheets, casualty losses, foreign taxes, gambling losses, state return rules, or credits. Treat the result as a Schedule A planning estimate.