SALT Phase-Out Calculator: High Earners Over $500k
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: Yusuf — at the scenario numbers pre-loaded below, the OBBBA deduction is $18,000, worth about $6,300 in federal income tax at a 35% marginal rate ($242 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
The arithmetic nobody escapes: at $620,000, 120 steps over the threshold cut the cap from $40,000 to $28,000 — his $45,000 of actual SALT is irrelevant above that ceiling. The floor at $10,000 arrives around $760,000 MAGI, restoring the old world exactly. Deferral levers (retirement contributions, charitable bunching) pull MAGI back down the slope at $100 of cap per $1,000 moved.
The full rules, caps and phase-outs for every deduction are in one table on the OBBBA rules page.
Worked Example
Yusuf reports $620,000 MAGI and pays $45,000 of combined state and local tax.
- • Deductible amount: $18,000
- • Federal income tax savings: $6,300 (at the 35% marginal rate)
- • Per biweekly paycheck: $242
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
At what income does the SALT cap bottom out?
The cap floors at $10,000 once MAGI reaches roughly $760,000 ($500,000 plus 300 steps of $100 per $1,000). Between $500k and that point, every $1,000 of MAGI costs $100 of cap.
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.