New York 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: Stefanie — at the scenario numbers pre-loaded below, the OBBBA deduction is $16,000, worth about $3,520 in federal income tax at a 22% marginal rate ($135 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 York stacks three layers — state, city, property — all of which count toward the SALT total, making the Empire State one of the biggest winners of the cap increase. The NYC commuter convenience question reverses for NJ/CT residents: you cannot deduct another state's income tax on your NY return, but on your federal return all state-and-local income taxes paid count regardless of which state received them.
The full rules, caps and phase-outs for every deduction are in one table on the OBBBA rules page.
Worked Example
Stefanie and her partner pay $17,000 New State + NYC tax and $9,000 property tax.
- • Deductible amount: $16,000
- • Federal income tax savings: $3,520 (at the 22% marginal rate)
- • Per biweekly paycheck: $135
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 NYC income tax count toward the SALT deduction?
Yes — city and local income taxes are state-and-local taxes for SALT purposes. New York State tax, NYC tax and real property tax all combine toward your OBBBA 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.