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Indiana SALT Cap Calculator

For Indiana filers.

The short answer: At the scenario numbers below, the OBBBA SALT deduction is $2,500 — about $550 back at a 22% rate ($21 per biweekly paycheck).

Old cap (pre-OBBBA): $10,000 deductible
Your OBBBA cap: $40,000
Extra deduction: $2,500
Est. federal tax savings: $550
Your state+local taxes ($12,500) 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

Indiana's flat state tax plus county income taxes (1–3%) plus property tax sum into SALT.

  • • State + county income + property → SALT to $40,000
  • • Phase-out above $500,000 MFJ
  • • Most Indiana households stay under $15,000 — the cap change helps the upper band

Worked Example

An Indianapolis MFJ household, $195,000 MAGI: about $8,500 state + county tax plus $4,000 property tax.

  • • Deductible amount: $2,500
  • • Federal income tax savings: $550 (at the 22% marginal rate)
  • • Per biweekly paycheck: $21

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Frequently Asked Questions

Are Indiana county income taxes deductible?

Yes — county option income taxes are local income taxes in SALT.

Did the SALT cap increase matter in Indiana?

For itemizers over $10,000 combined — often higher-income Lake/Marion County residents.