Illustration of the 2026 SALT deduction cap — courts upholding the cap while the One Big Beautiful Bill raises the limit from $10,000 to $40,000, with a phase-out above $500,000 of income
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SALT Deduction Cap 2026: Now $40,000 (Courts Uphold It)

BySW Accounting admin

Is the SALT deduction cap going away in 2026? No. Federal courts continue to uphold the SALT deduction cap, with a New Jersey federal court dismissing another constitutional challenge in May 2026. But there is relief: the One Big Beautiful Bill raised the cap from $10,000 to $40,000 beginning in 2025, with a 1% annual…