The federal SALT deduction limit rises to $40,400 for 2026, but California taxpayers may lose part of the deduction when modified adjusted gross income exceeds $505,000. Learn how income tax, property tax, year end payments, and the PTE elective tax affect the deduction.

Federal law allows new deductions for overtime and tip income starting in 2025, but California does not conform. Learn why California workers must add these amounts back on their state return.