Colorado SALT Cap Calculator
For Colorado filers at 4.4% flat income tax.
The short answer: At the scenario numbers below, the OBBBA SALT deduction is $17,000 — about $5,950 back at a 35% rate ($229 per biweekly paycheck).
⚠️ 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
Colorado's flat income tax keeps state tax predictable; the OBBBA raised the SALT cap to $40,000 (2025–2029) with a MAGI phase-out above $500,000 MFJ.
- • State income tax (4.4% flat) + property tax → one SALT number
- • High-MAGI years: phase-out trims the cap
- • TABOR refunds don't reduce prior-year SALT paid
Worked Example
A Denver MFJ household with $580,000 MAGI pays roughly $22,000 state income tax plus $5,000 property tax.
- • Deductible amount: $17,000
- • Federal income tax savings: $5,950 (at the 35% marginal rate)
- • Per biweekly paycheck: $229
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Frequently Asked Questions
Did the SALT cap increase help Colorado filers?
Yes — from $10,000 to $40,000 through 2029 for itemizers, phased down above $500,000/$600,000 MAGI. Colorado's flat tax plus property tax routinely cleared the old cap.
Does Colorado's TABOR refund count?
No — refunds arrive the following year and don't reduce the SALT you actually paid in the tax year.