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Tax literacy

Not a filing form

Property-tax / SALT cap awareness

Property tax is a cash housing cost. Deductible state and local taxes are one federal bucket — and only when a cap applies and you itemize.

Educational illustration for tax year 2025 — verify current IRS publications before use. This is a labeled assumption, not an official current-law rate table.

Required inputs

  • Property tax paid

Optional: state income or sales tax illustration, and a SALT cap assumption you enter. If you do not enter a cap, this page will not invent one and will not compute a federal deduction number.

Teaching formula

Cash cost = property tax paid. If you supply a cap, educational amount under the cap = the smaller of (property tax + optional state tax) and the cap; remainder = the stack minus the cap, not below zero. If you omit a cap, the federal deduction line stays uncomputed and the awareness panel explains why.

Assumptions

  • SALT includes more than property tax.
  • Itemizing is still required for a federal benefit.
  • This page does not publish an official current-year cap.

Official IRS sources