SALT Deduction Limit for 2025

The SALT deduction limit for 2025 is $40,000 ($20,000 if married filing separately) [1].

Phase-out Rules:

For tax years beginning before 2030, this limit is reduced by 30% of the excess of your modified adjusted gross income over $500,000 ($250,000 if married filing separately) [2]. However, the limitation cannot be reduced below $10,000 ($5,000 if married filing separately) [2].

This means if your modified AGI is $600,000 or more ($300,000 or more if married filing separately), your SALT deduction is limited to the minimum of $10,000 ($5,000 if married filing separately) [2].

Modified AGI includes your regular AGI increased by the foreign earned income exclusion and certain territorial income exclusions [1].