SALT cap
The limit on the itemized deduction for state and local taxes: $40,000 for 2025 and $40,400 for 2026 for most filers, phasing down at higher incomes and returning to $10,000 in 2030.
Section 164(b) caps how much state and local income, sales and property tax an itemizer can deduct. Public Law 119-21 raised the cap from $10,000 to $40,000 for 2025, with 1% annual increases through 2029, half for married filing separately.
Above a modified AGI threshold the cap falls by 30% of the excess, but never below $10,000. From 2030 the statute returns the cap to $10,000.
Because the cap moved, some households that stopped itemizing after 2018 may be back over the standard deduction, which makes their donation records count again.
Sources
- 26 U.S.C. § 164, Taxes (see § 164(b)(6) and (b)(7), limitation on individual deductions for state and local taxes)Office of the Law Revision Counsel, U.S. House of Representatives, Statute
- Public Law 119-21 (One Big Beautiful Bill Act), enrolled text of H.R. 1, secs. 70111, 70424, 70425U.S. Congress, Statute
The rule as published, not tax advice; confirm anything that affects a return with a tax professional.
Related: Itemized deduction, Standard deduction, AGI limit (percentage limitation), Automatic revocation. Browse every term.
Values with the source attached
DeductiBee applies a cited fair-market-value range to everything you donate, keeps the photo with the record, and exports a Form 8283 worksheet when you file.
