Property Tax Deduction Calculator (OBBBA SALT)
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: The Hartmans — at the scenario numbers pre-loaded below, the OBBBA deduction is $7,000, worth about $1,540 in federal income tax at a 22% marginal rate ($59 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
Property tax is only half the story — it shares one cap with income tax, and the combined number is what counts. Under the old $10,000 cap, suburbs like theirs lost $7,000 of deduction every year; under OBBBA the full $17,000 deducts. Escrow accounts hide the real number: your annual escrow disbursement, not your monthly payment, is the property tax that counts.
The full rules, caps and phase-outs for every deduction are in one table on the OBBBA rules page.
Worked Example
The Hartmans pay $12,000 state income tax and $5,000 property tax on a suburban home.
- • Deductible amount: $7,000
- • Federal income tax savings: $1,540 (at the 22% marginal rate)
- • Per biweekly paycheck: $59
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
Is property tax separately capped from income tax?
No — property tax and state/local income taxes share one combined SALT cap. Under OBBBA that combined cap is $40,000 (2025), phasing down above $500,000 MAGI.
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.