What is the SALT cap and who does it affect?

The Tax Cuts and Jobs Act (2017) capped the combined state income/sales tax plus property tax deduction at $10,000 per household. High-tax states like NY, CA, NJ, and IL residents paying $20,000–$50,000+ in state/local taxes are most impacted.

Are there workarounds to the SALT cap?

Some states offer pass-through entity (PTE) elections allowing business owners to deduct state taxes at the entity level, bypassing the cap. These SALT workarounds are currently accepted by the IRS.

Is the SALT cap permanent?

The TCJA provisions including the SALT cap are currently scheduled to expire after 2025. Congressional action will determine whether it continues, expires, or is modified.

SALT Cap Tax Impact Calculator

Calculate your tax cost from the $10,000 SALT (State and Local Tax) cap introduced by TCJA. Shows deduction lost and additional federal tax owed vs pre-2018 treatment.

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Frequently Asked Questions

What is the SALT cap and who does it affect?

Are there workarounds to the SALT cap?

Is the SALT cap permanent?