The 2026 SALT Cap Is $40,400 — Here’s the Income Level Where It Shrinks Back to $10,000 for New Jersey Earners
For 2026, the federal deduction for state and local taxes (SALT) is capped at $40,400 — but only while your modified adjusted gross income (MAGI) stays at or below $505,000. Above that line, the cap drops by 30 cents for every dollar of extra income until it reaches a $10,000 floor at about $606,333 of […]
