New Jersey 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: Anthony — at the scenario numbers pre-loaded below, the OBBBA deduction is $17,000, worth about $3,740 in federal income tax at a 22% marginal rate ($144 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
New Jersey's famously brutal property taxes finally meet a cap that fits: $27,000 of SALT fits comfortably under $40,000, where the old law admitted only $10,000. The state's own PTET workaround (pass-through entity tax) interacts with federal SALT differently — entity-level taxes are deducted by the entity, not on your personal SALT line, so owners with PTET credits should count only the taxes on their personal returns.
The full rules, caps and phase-outs for every deduction are in one table on the OBBBA rules page.
Worked Example
Anthony pays $14,000 NJ income tax and $13,000 property tax — the classic Jersey split.
- • Deductible amount: $17,000
- • Federal income tax savings: $3,740 (at the 22% marginal rate)
- • Per biweekly paycheck: $144
Your actual state tax bill sets the input; the cap and phase-out above set the ceiling — the calculator reconciles both.
Keep Reading
Frequently Asked Questions
Does NJ's PTET work-around change my personal SALT deduction?
Partly: taxes paid at the pass-through entity level are the entity's deduction, not yours. Count only state and local taxes you paid personally — wage withholding, estimated payments, property tax on your home.
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.