SALT deduction
The itemized deduction for state and local income or sales taxes plus property taxes, limited to $40,400 for 2026.
SALT stands for state and local taxes. If you itemize, you can deduct either your state and local income tax or your sales tax, plus property taxes on your home and some other property.
The total is capped. For 2026 the limit is $40,400, and it shrinks for modified adjusted gross income above $505,000, but not below $10,000. If you take the standard deduction, the SALT deduction doesn't apply.
Example
Paying $4,200 of state income tax and $3,100 of property tax gives $4,200 + $3,100 = $7,300 of SALT, well under the limit.