Definition
Tax deduction for state and local property taxes paid, subject to SALT cap limits.
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Find my pathAbout this term
Property tax counts toward the SALT cap: $40,400 in 2026 ($20,200 if married filing separately), combined with state income or sales tax, and lower when modified adjusted gross income is over $505,000 ($252,500 if married filing separately). It matters most in high-tax states.
Pro Tip
With SALT cap, many homeowners benefit from grouping property tax payments in alternating years.
Example
Deducting $8,000 annual property taxes on primary residence up to SALT cap.