How Much SALT Do I Get in 2026

We review the current House and Senate Tax Proposals on the State and Local Tax (SALT) deduction

Photo by Priscilla Du Preez 🇨🇦 on Unsplash

The House tax proposal increased the state and local tax (SALT) limit for individuals from the current $10,000 limit to $40,000 and then would start phasing that out once your income hit $500,000.

However, many states have what is called a pass-through entity tax (PTET) system that allows partnerships and S corporations to pay the SALT for the individuals directly. This is a deduction at the entity level and then a credit is passed through to the owners that allows them to offset their state income taxes for the income of that entity.

Effectively this allows a full SALT deduction for those owners.