Veytics Intelligence
2026-10-07 · CNBC

The SALT deduction limit is $40,400 for 2026. Here's how to maximize it

It's been more than a year since Republicans enacted President Donald Trump 's "big beautiful bill," and many filers can still benefit from a temporary change to the federal deduction limit for state and local taxes , known as SALT. Trump's legislation raised the SALT deduction limit to $40,000 in 2025, up from $10,000 in 2024. That cap increased to $40,400 for 2026, and will rise yearly by 1% through 2029 before reverting to $10,000 in 2030. The tax break, which applies to itemizers, includes property taxes plus either state and local income or sales taxes, but not both. Before Trump's 2017 tax overhaul , the SALT deduction was unlimited, and the 2018 change was a pain point for certain residents of high-tax states.

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