Kentucky SALT Cap Calculator
For Kentucky filers.
The short answer: At the scenario numbers below, the OBBBA SALT deduction is $3,500 — about $770 back at a 22% rate ($30 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
Kentucky's flat 4% tax plus Jefferson County property tax crosses $10,000 for many itemizers.
- • Income + property → SALT to $40,000
- • Phase-out above $500,000 MFJ
- • Louisville occupational tax (2.2%) counts as local income tax
Worked Example
A Louisville/Lexington MFJ household, $200,000 MAGI: about $9,000 income tax plus $4,500 property tax.
- • Deductible amount: $3,500
- • Federal income tax savings: $770 (at the 22% marginal rate)
- • Per biweekly paycheck: $30
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Frequently Asked Questions
Is the Louisville occupational tax deductible for SALT?
Yes — local occupational/license taxes are local income taxes within SALT.
Did OBBBA change Kentucky itemizing?
The higher cap mainly helps those above $10,000 combined — common in Louisville metro.