2022 SALT Deduction Limit
The 2022 SALT Deduction Limit is $10,000.
Effective 2022-01-01Source: 2022 Instructions for Schedule A (IRS)Verified 2026-08-29
Compared with 2021
Every figure on this page is unchanged from 2021.
| Item | 2021 | 2022 | Change |
|---|---|---|---|
| Deduction limit | $10,000 | $10,000 | +$0 (+0.0%) |
Who it applies to
Taxpayers who itemize deductions and claim state and local taxes on Schedule A
What changed this year, and why
The deduction for state and local taxes is limited to $10,000 for 2022. This cap applies to the state and local taxes claimed on Schedule A.
Common questions
- What is the SALT deduction limit?
- The SALT deduction limit is the maximum amount you can deduct for state and local taxes on your federal return when you itemize. This includes state and local income taxes (or sales taxes) and property taxes.
- Does the limit differ if I am married filing separately?
- Yes, married taxpayers filing separately have a lower limit than the standard amount.
The limit shrinks above a stated income
The SALT deduction is generally limited to $10,000 for the 2022 tax year. This cap applies to the total of state and local income taxes (or sales taxes if you elect that option), personal property taxes, and real estate taxes that you include on lines 5a, 5b, and 5c of Schedule A. The limit is not indexed for inflation and applies regardless of how much you actually paid in state and local taxes. If you are married filing separately, the limit is reduced. The cap affects taxpayers differently depending on their state's tax structure and their overall itemized deductions, but it sets a firm ceiling on the tax benefit you can receive from these payments.
The deduction for state and local taxes is generally limited to $10,000 ($5,000 if married filing separately).
2022 Instructions for Schedule A (IRS)
Income taxes or sales taxes, one or the other
Schedule A lets you choose between deducting state and local income taxes or state and local general sales taxes, but not both. If you elect the sales tax option, you check the box on line 5a and forgo any deduction for state and local income taxes. You can figure the sales tax amount using either your actual receipts or the optional sales tax tables the IRS provides. Most taxpayers who live in a state with no income tax, or who made a large purchase such as a car or boat in 2022, benefit from the sales tax election. Everyone else generally claims the income tax side. Whichever you pick, the combined total of state and local taxes you deduct, including property taxes, cannot exceed $10,000.
You can elect to deduct state and local general sales taxes instead of state and local in- come taxes. You can't deduct both.
2022 Instructions for Schedule A (IRS)
What is not a deductible tax
Not every tax you pay is deductible on Schedule A. Federal income tax is never deductible, nor are Social Security, Medicare, federal unemployment (FUTA), or railroad retirement (RRTA) taxes. Customs duties and federal estate and gift taxes are also excluded (though estate tax may appear elsewhere if you have income in respect of a decedent). At the state and local level, gasoline taxes, vehicle inspection fees, and special assessments for sidewalks or other neighborhood improvements do not count either. These items are either already reflected in other parts of the tax return or are considered personal expenses rather than taxes owed to a taxing authority. Only taxes that are imposed by a government and that fall into one of the recognized categories - income, sales, real property, or personal property - can be included in your itemized deduction, subject to the $10,000 overall cap.
Taxes You Can't Deduct • Federal income and most excise taxes. • Social security, Medicare, federal unemployment (FUTA), and railroad re- tirement (RRTA) taxes. • Customs duties. • Federal estate and gift taxes. How- ever, see Line 16, later, if you had in- come in respect of a decedent. • Certain state and local taxes, in- cluding tax on gasoline, car inspection fees, assessments for sidewalks or other improvements to
2022 Instructions for Schedule A (IRS)
Payroll contributions that do count
If your employer withholds mandatory amounts from your paycheck for a state disability, unemployment, or family-leave program, that withholding counts as a deductible state income tax on Schedule A. The IRS specifically names the California, New Jersey, and New York Nonoccupational Disability Benefit Fund, the Rhode Island Temporary Disability Benefit Fund, and the Washington State Supplemental Workmen's Compensation Fund as qualifying disability programs. Mandatory contributions to the Alaska, California, New Jersey, or Pennsylvania state unemployment funds also qualify, as do mandatory payments into state family leave programs such as the New Jersey Family Leave Insurance program and the California Paid Family Leave program. The key word is mandatory - voluntary contributions do not count. These amounts flow onto line 5a and are subject to the overall $10,000 state-and-local-tax cap.
Mandatory contributions you made to the California, New Jersey, or New York Nonoccupational Disability Bene- fit Fund, Rhode Island Temporary Disa- bility Benefit Fund, or Washington State Supplemental Workmen's Compensation Fund.
2022 Instructions for Schedule A (IRS)
You only get this if you itemize
To claim any SALT deduction you must first itemize. Schedule A (Form 1040) compares the total of your allowable itemized deductions - including state and local taxes, mortgage interest, charitable gifts, and certain other expenses - to your standard deduction. You receive a tax benefit from SALT only when the total of your itemized deductions is larger than the standard deduction for your filing status. Taxpayers whose itemized total falls below the standard amount get no benefit from their SALT payments at all, because the return uses the larger figure instead. For 2022 the standard deduction is set by filing status; if your itemized total, SALT included, does not exceed it, the SALT limit is effectively moot. Plan with your full Schedule A in hand, and remember that the SALT cap applies only to the itemized amount you actually claim.
Use Schedule A (Form 1040) to figure your itemized deductions. In most cases, your federal income tax will be less if you take the larger of your itemized deductions or your standard deduction.
2022 Instructions for Schedule A (IRS)
How each figure was verified
Each number below was read from a stored copy of the document named beside it, and checked to occur word for word in the quoted sentence. The digest is of that stored text.
2022 Instructions for Schedule A (IRS)
- Deduction limit
The deduction for state and local taxes is generally limited to $10,000 ($5,000 if married filing separately).