01/11/2026
Starting with tax year 2025, the SALT deduction limit on Schedule A (Form 1040) goes from $10,000 up to $40,000 for most filers. 
• That means if you itemize deductions, you can potentially deduct up to $40,000 of combined state and local income, sales, and property taxes on your federal return instead of being capped at $10,000. 
• If you’re married filing separately, the new cap is $20,000. 
🧾 Income Phase-Out Applies
• The increased cap is reduced (phased down) for taxpayers with high modified adjusted gross income (MAGI) — roughly starting at $500,000 for individuals (or $250,000 if married filing separately). It can never go below the old $10,000 cap.
