SALT Deduction
TaxGlossary term
Definition
The State and Local Tax deduction allows taxpayers to deduct state income, sales, and property taxes from their federal taxable income. Currently capped at $10,000 per year for individuals and married couples filing jointly.
Related terms
- Itemized DeductionsSpecific expenses that can be deducted from taxable income, including mortgage interest, charitable donations, and medical expenses. Must exceed the standard deduction to be beneficial.
- Property TaxAn annual tax levied by local governments on real estate based on the assessed value of the property. Rates vary by location and fund local services like schools, roads, and emergency services. Often paid through mortgage escrow accounts.
- Standard DeductionA fixed dollar amount that reduces taxable income, available to all taxpayers. For 2026: $16,100 for single filers, $32,200 for married filing jointly.
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