Sales Tax Deduction Calculator
An Alternative to Deducting State Income Tax
Taxpayers who itemize deductions get to choose between deducting state and local income taxes or state and local sales taxes — not both. In states with no income tax, or for a year with unusually large taxable purchases, the sales tax option can be worth more. Since 2018, the combined state and local tax (SALT) deduction, covering whichever of these is chosen plus property taxes, has been capped, which this calculator applies directly.
The Formula
Total SALT = Sales Tax Paid + Other State/Local Taxes
Deductible Amount = min(Total SALT, Cap)
The cap is $10,000 for single, joint, and head-of-household filers, and $5,000 for married filing separately.
Where This Matters
- No-income-tax states — residents of states like Texas or Florida have no state income tax to deduct, making the sales tax deduction the only SALT option worth claiming.
- Large one-time purchases — a major vehicle, boat, or home-improvement purchase in a given year can push sales tax paid above what state income tax withholding would have produced.
- Cap awareness — because property tax counts toward the same $10,000 cap, homeowners in high-property-tax areas may find little or no room left for sales tax to add anything.
Worked Example
| Step | Amount |
|---|---|
| Estimated sales tax paid | $3,712.50 |
| Other state/local taxes (e.g. property tax) | $2,000.00 |
| Total SALT paid | $5,712.50 |
| SALT deduction cap | $10,000.00 |
| Deductible amount | $5,712.50 |
Because total SALT stayed under the $10,000 cap in this example, the full amount is deductible; above the cap, only $10,000 (or $5,000 for married filing separately) would count.
How to Use This Calculator
- Enter your estimated annual taxable spending.
- Enter your combined state and local sales tax rate.
- Enter any other state and local taxes paid, such as property tax (optional).
- Select your filing status.
- Select Calculate to see your deductible SALT amount and whether the cap applies.
Related Calculations
See the Income Tax Calculator to estimate your federal liability, or the Payroll Tax Calculator for a full paycheck-level tax breakdown.