{"id":39465,"date":"2025-10-14T11:00:00","date_gmt":"2025-10-14T16:00:00","guid":{"rendered":"https:\/\/www.hrblock.com\/tax-center\/?p=39465"},"modified":"2026-02-27T12:05:21","modified_gmt":"2026-02-27T18:05:21","slug":"what-is-the-salt-deduction","status":"publish","type":"post","link":"https:\/\/www.hrblock.com\/tax-center\/irs\/tax-reform\/what-is-the-salt-deduction\/","title":{"rendered":"What is the SALT deduction?"},"content":{"rendered":"\n<p>The State and Local Tax (SALT) deduction allows you to deduct certain taxes you&#8217;ve paid to state and local governments\u2014like taxes paid on wages and salaries, real estate taxes on owned property, and sales tax\u2014from your federal taxable income.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"alignright size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"240\" height=\"160\" src=\"https:\/\/www.hrblock.com\/tax-center\/wp-content\/uploads\/2018\/08\/tax-deduction-concept-on-page.jpg\" alt=\"tax deduction concept, man holding pen and using calculator next to computer\" class=\"wp-image-68525\" srcset=\"https:\/\/www.hrblock.com\/tax-center\/wp-content\/uploads\/2018\/08\/tax-deduction-concept-on-page.jpg 240w, https:\/\/www.hrblock.com\/tax-center\/wp-content\/uploads\/2018\/08\/tax-deduction-concept-on-page-50x33.jpg 50w\" sizes=\"auto, (max-width: 240px) 100vw, 240px\" \/><\/figure><\/div>\n\n\n<p>You can only claim the SALT deduction if you itemize your deductions, meaning you\u2019re not claiming the standard deduction on your tax return. With the enactment of the <a href=\"https:\/\/www.hrblock.com\/tax-center\/irs\/tax-law-and-policy\/one-big-beautiful-bill-taxes\/\">One Big Beautiful Bill Act<\/a>, the maximum amount of the deduction has been increased.<\/p>\n\n\n\n<p>This increase may change whether it makes sense for you to <a href=\"https:\/\/www.hrblock.com\/tax-center\/filing\/adjustments-and-deductions\/standard-vs-itemized-deductions\/\">itemize deductions vs. claiming the standard deduction<\/a> when you file your return. You may want to reevaluate your situation with these changes,&nbsp;especially if you live in a high-tax state. &nbsp;<\/p>\n\n\n\n<div class=\"wp-block-create-block-hrb-single-override-cta\" class=\"wp-block-create-block-hrb-single-override-cta\" style=\"background-color:#005d1f\"><div class=\"hrb-single-override-cta--image\" style=\"background-image:url(&quot;https:\/\/www.hrblock.com\/tax-center\/wp-content\/themes\/hrb_tic\/img\/on-laptop-at-desk-graphic.png&quot;);background-size:contain;background-position:center;background-repeat:no-repeat\"><\/div><div class=\"hrb-single-override-cta--copy #ffffff\"><h3 class=\"main-heading\">File with H&amp;R Block to get your max refund<\/h3><div class=\"quick-links-list-buttons\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/www.hrblock.com\/online-tax-filing\/\">File online<\/a><\/div>\n\n\n\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/www.hrblock.com\/tax-offices\/?app_method=GENERAL_TAX_PREP_METHOD\">File with a tax pro<\/a><\/div>\n<\/div><\/div><\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-is-the-salt-cap\">What is the SALT cap?<\/h2>\n\n\n\n<p><strong>For tax years 2025 to 2029<\/strong>, the SALT deduction cap temporarily increases to:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>$40,000 for Single, Head of Household, Qualifying Surviving Spouse, and Married Filing Jointly filers*<\/li>\n\n\n\n<li>$20,000 for Married Filing Separately filers*<\/li>\n<\/ul>\n\n\n\n<p>For incomes above $500,000* or $250,000* for Married Filing Separately, the deduction is phased down by 30% of the excess income until it reaches a minimum of $10,000.<\/p>\n\n\n\n<p><em>* Increases annually by 1% for inflation<\/em><\/p>\n\n\n\n<p><strong>In 2030<\/strong>, the deduction cap reverts permanently to $10,000 or $5,000 for Married Filing Separately.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-state-and-local-tax-salt-deduction-limit-prior-to-2025\">State and Local Tax (SALT) Deduction limit prior to 2025<\/h2>\n\n\n\n<p>Prior to 2025, if you itemized your federal income tax return, you could also deduct amounts paid for state and local income (or sales) and property taxes.<\/p>\n\n\n\n<p><strong>For tax years 2018 to 2024, <\/strong>the cap was:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>$10,000 per return for Single, Head of Household, and Married Filing Jointly filers<\/li>\n\n\n\n<li>$5,000 for Married Filing Separately filers<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-is-a-salt-deduction-what-taxes-count\">What is a SALT deduction? What taxes count?<\/h2>\n\n\n\n<p>The SALT deduction is a provision in the U.S. tax system that lets taxpayers deduct certain amounts paid to their state or local government from their federal taxes.<\/p>\n\n\n\n<p>Only certain types of state and local taxes count. These include:<\/p>\n\n\n\n<ol start=\"1\" class=\"wp-block-list\">\n<li><strong>State and local income taxes<\/strong>: What you pay to your state based on your earned and unearned income.<\/li>\n\n\n\n<li><strong>Sales taxes<\/strong>: You can opt to deduct either income tax or sales tax, not both.<\/li>\n\n\n\n<li><strong>Property taxes<\/strong>: Taxes you pay if you own a home or land.<\/li>\n<\/ol>\n\n\n\n<p>You can\u2019t deduct federal taxes, gas or utility taxes, or taxes on home renovations or special local assessments.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-how-does-the-salt-tax-work-and-how-do-you-claim-it\">How does the SALT tax work and how do you claim it?<\/h2>\n\n\n\n<p>Here\u2019s the process of claiming the SALT deduction:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>Check if itemizing your deductions, including claiming the SALT deduction, makes sense vs. claiming the Standard Deduction. <\/li>\n\n\n\n<li>Use IRS <a href=\"https:\/\/www.hrblock.com\/tax-center\/filing\/adjustments-and-deductions\/schedule-a-itemized-deductions\/\">Schedule A<\/a> to list all your itemized deductions, including the SALT deduction. On Schedule A, there\u2019s a section specific to state and local taxes. You\u2019ll enter:<\/li>\n\n\n\n<li>Either state income tax or sales tax (you pick one); and<\/li>\n\n\n\n<li>Property taxes you paid<\/li>\n\n\n\n<li>&nbsp;When you file your taxes on <a href=\"https:\/\/www.hrblock.com\/tax-center\/irs\/forms\/form-1040\/\">Form 1040<\/a>, you\u2019ll include Schedule A to show the IRS your itemized deductions.<\/li>\n<\/ol>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-get-help-claiming-the-salt-deduction\">Get help claiming the SALT deduction<\/h2>\n\n\n\n<p>Need help claiming the SALT deduction? Whether you choose to&nbsp;<a href=\"https:\/\/www.hrblock.com\/tax-offices\/?app_method=GENERAL_TAX_PREP_METHOD\">file with a tax pro<\/a>&nbsp;or file with&nbsp;<a href=\"https:\/\/www.hrblock.com\/online-tax-filing\/\">H&amp;R Block Online<\/a>, you can rest assured that we\u2019ll get you the biggest refund possible.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-salt-deduction-faq\">SALT deduction FAQ<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-what-s-the-current-salt-deduction-limit-and-what-taxes-does-it-include\">What\u2019s the current SALT deduction limit and what taxes does it include?<\/h3>\n\n\n\n<p>For tax year 2025 through 2029, the State and Local Tax (SALT) deduction limit is $40,000. It covers state and local income taxes or sales taxes, real estate taxes, and personal property taxes.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The State and Local Tax (SALT) deduction allows you to deduct certain taxes you&#8217;ve paid to state and local governments\u2014like taxes paid on wages and salaries, real estate taxes on owned property, and sales tax\u2014from your federal taxable income. You can only claim the SALT deduction if you itemize your deductions, meaning you\u2019re not claiming [&hellip;]<\/p>\n","protected":false},"author":641,"featured_media":68522,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[25,13040],"tags":[],"class_list":["post-39465","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-irs","category-tax-reform"],"acf":[],"yoast_head":"<title>What is the SALT Deduction? | H&amp;R Block<\/title>\n<meta name=\"description\" content=\"Learn more about the SALT Deduction, a new federal tax law that caps itemized state and local tax deductions for all filers.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.hrblock.com\/tax-center\/irs\/tax-reform\/what-is-the-salt-deduction\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What is the SALT deduction?\" \/>\n<meta property=\"og:description\" content=\"Learn more about the SALT Deduction, a new federal tax law that caps itemized state and local tax deductions for all filers.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.hrblock.com\/tax-center\/irs\/tax-reform\/what-is-the-salt-deduction\/\" \/>\n<meta property=\"og:site_name\" content=\"H&amp;R Block\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/hrblock\" \/>\n<meta property=\"article:published_time\" content=\"2025-10-14T16:00:00+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2026-02-27T18:05:21+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.hrblock.com\/tax-center\/wp-content\/uploads\/2018\/08\/Tax-deduction-concept.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"720\" \/>\n\t<meta property=\"og:image:height\" content=\"480\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Joe Davis\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@hrblock\" \/>\n<meta name=\"twitter:site\" content=\"@hrblock\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Joe Davis\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/resource-center.hrblock.com\\\/irs\\\/tax-reform\\\/what-is-the-salt-deduction\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/resource-center.hrblock.com\\\/irs\\\/tax-reform\\\/what-is-the-salt-deduction\\\/\"},\"author\":{\"name\":\"Joe Davis\",\"@id\":\"https:\\\/\\\/resource-center.hrblock.com\\\/#\\\/schema\\\/person\\\/13a1365937cabe7a576284e61c22e0d6\"},\"headline\":\"What is the SALT deduction?\",\"datePublished\":\"2025-10-14T16:00:00+00:00\",\"dateModified\":\"2026-02-27T18:05:21+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/resource-center.hrblock.com\\\/irs\\\/tax-reform\\\/what-is-the-salt-deduction\\\/\"},\"wordCount\":591,\"image\":{\"@id\":\"https:\\\/\\\/resource-center.hrblock.com\\\/irs\\\/tax-reform\\\/what-is-the-salt-deduction\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/resource-center.hrblock.com\\\/wp-content\\\/uploads\\\/2018\\\/08\\\/Tax-deduction-concept.jpg\",\"articleSection\":[\"IRS\",\"Tax reform\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/resource-center.hrblock.com\\\/irs\\\/tax-reform\\\/what-is-the-salt-deduction\\\/\",\"url\":\"https:\\\/\\\/resource-center.hrblock.com\\\/irs\\\/tax-reform\\\/what-is-the-salt-deduction\\\/\",\"name\":\"What is the SALT Deduction? 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