Sales Tax vs Income Tax Deduction Calculator

Enter Calculation

State & Local Income Tax Paid ($)

Total Sales Tax Paid ($)

State & Local Property Tax Paid ($)

Results

Estimated SALT Deduction

$8,000

deducting Income Tax (capped at $10,000)

Chosen tax to deduct	Income Tax: $5,000
Property tax added	$3,000
Combined SALT total	$8,000
Amount over the $10,000 cap (lost)	$0

What this calculator does

This tool applies to United States federal income tax (IRS Schedule A, itemized deductions) under current rules where the combined state and local tax (SALT) deduction is capped at $10,000 ($5,000 if married filing separately). When you itemize, you may deduct either your state and local income taxes or your general sales taxes — but never both. This calculator picks the larger of the two for you, adds your property tax, and applies the cap.

How to use it

Enter the total state and local income tax you paid for the year, the total general sales tax you paid (estimate it from the IRS sales tax tables plus big-ticket purchases like a car or boat), and your state and local property tax. The calculator shows which tax wins, your combined SALT total, your allowed deduction, and any amount lost above the $10,000 ceiling.

The formula explained

First, \(\text{chosen} = \max(\text{income tax},\ \text{sales tax})\). Sales tax usually wins for people in states with no income tax (e.g. Florida, Texas, Washington). Then \(\text{combined} = \text{chosen} + \text{property tax}\), and finally \(\text{deduction} = \min(\text{combined},\ 10000)\). Anything above $10,000 provides no federal benefit.

$$\text{Deduction} = \min\left(\,\max\left(\text{Income Tax},\ \text{Sales Tax}\right) + \text{Property Tax},\ 10{,}000\right)$$

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The deduction takes the larger of income or sales tax, adds property tax, then caps the total at $10,000.

Worked example

Suppose you paid $5,000 in state income tax, $4,000 in sales tax, and $3,000 in property tax. The larger of income vs sales is $5,000 (income tax). Add $3,000 property tax for a combined SALT total of $8,000. Since $8,000 is below the $10,000 cap, your full deduction is $8,000 with nothing lost.

$$\text{Deduction} = \min\left(\,\max\left(5{,}000,\ 4{,}000\right) + 3{,}000,\ 10{,}000\right) = \min\left(8{,}000,\ 10{,}000\right) = 8{,}000$$

Comparing the income-tax and sales-tax routes against the $10,000 SALT cap line.

FAQ

Can I deduct both income tax and sales tax? No. The IRS lets you choose only one. Use the larger amount.

Does this only help if I itemize? Yes. The SALT deduction has no effect if you take the standard deduction, which most filers now do.

Is property tax part of the $10,000 cap? Yes. The $10,000 limit covers income/sales tax plus property tax combined. This is an estimate — consult a tax professional for your specific situation.