All glossary terms
Glossary term
State and Local Tax (SALT) Deduction
An itemized deduction for state and local taxes, capped at $10,000 through 2025.
Related terms
1
Jurisdictions
us
Definition
Section 164(b)(6) caps the aggregate deduction for state and local property, income (or sales), and certain other taxes at $10,000 ($5,000 MFS) for individuals for tax years 2018 through 2025. Most states have responded with pass-through entity tax workarounds.
Examples
- A high-tax state homeowner paying $20,000 in state and property taxes deducts only $10,000.
Related terms
Translations
ESdeducción SALT
ZH州和地方税扣除
DESALT-Abzug
FRdéduction SALT
JA州・地方税控除
Citations
26 U.S.C. · 164
Related citations
Computed from the cross-reference graph. Links open the related entity on this site.
This entry cites
- TermItemized Deduction
- StatuteIRC §164
Cited by
Primary sources
- IRS: SALT deductionVerified 2026-05-20
Important disclaimer
This library is for general tax education only. Always verify filing obligations, due dates, and tax consequences against the cited primary source or with a qualified tax professional.