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Alabama SALT Cap Calculator

For Alabama filers.

The short answer: At the scenario numbers below, the OBBBA SALT deduction is $2,300 — about $506 back at a 22% rate ($19 per biweekly paycheck).

Old cap (pre-OBBBA): $10,000 deductible
Your OBBBA cap: $40,000
Extra deduction: $2,300
Est. federal tax savings: $506
Your state+local taxes ($12,300) are below your $40,000 cap

⚠️ This calculator provides estimates for informational and educational purposes only. It is not tax advice. Results are based on the One Big Beautiful Bill Act (OBBBA) and IRS Schedule 1-A. Consult a qualified tax professional for your specific situation.

Your State's Slice of the $40,000 Cap

Alabama's top 5% bracket plus municipal and county property taxes sum below the old cap for most.

  • • Income + property → SALT to $40,000
  • • Phase-out above $500,000 MFJ
  • • State grocery tax cuts don't affect SALT

Worked Example

A Birmingham MFJ household, $185,000 MAGI: about $8,500 income tax plus $3,800 property tax.

  • • Deductible amount: $2,300
  • • Federal income tax savings: $506 (at the 22% marginal rate)
  • • Per biweekly paycheck: $19

Keep Reading

Frequently Asked Questions

Does the higher SALT cap help Alabama filers?

Mainly higher earners over $10,000 combined; most stay near or under the old cap.

Alabama occupational taxes in cities?

City occupational/license taxes are deductible local income taxes.