California SALT Cap Calculator ($40,000 OBBBA)
Enter your MAGI and total state + local taxes below. The estimate applies the OBBBA cap and phase-out line by line — no tax software, no signup.
The short answer: Diego — at the scenario numbers pre-loaded below, the OBBBA deduction is $21,000, worth about $4,620 in federal income tax at a 22% marginal rate ($178 per biweekly paycheck). Exact figures update live as you change the inputs.
⚠️ 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
California is the SALT cap's natural habitat: state tax alone blows past the old $10,000, so the OBBBA's expanded cap converts real money into deductions — if your MAGI stays under the $500,000 phase-out. Bay Area two-earner households near that line watch RSU vesting years carefully, because a big vest pushes the cap down $100 per $1,000.
The full rules, caps and phase-outs for every deduction are in one table on the OBBBA rules page.
Worked Example
Diego pays $19,000 California income tax plus $12,000 property tax on a Bay Area home.
- • Deductible amount: $21,000
- • Federal income tax savings: $4,620 (at the 22% marginal rate)
- • Per biweekly paycheck: $178
Your actual state tax bill sets the input; the cap and phase-out above set the ceiling — the calculator reconciles both.
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Frequently Asked Questions
How much SALT can Californians deduct now?
Up to $40,000 in 2025 (rising 1% yearly through 2029) if MAGI stays at or below $500,000. Above that, the cap falls $100 per $1,000 of MAGI down to a $10,000 floor. State income tax plus property tax both count.
Which taxes count toward the SALT deduction?
State and local income taxes (or sales tax if you elect that instead) plus real property taxes, up to the OBBBA cap after any income phase-out. Federal taxes never count.