How to Use the SALT Sales Tax Deduction Tracker
Korea's credit and debit card spending income deduction has no direct U.S. equivalent, so this tool is rebuilt around the closest real American concept: the state and local tax (SALT) deduction, specifically the option to deduct general sales tax instead of state income tax. If you itemize and live in a state with no or low income tax, tracking your card spending to estimate sales tax paid can be the better path to maximizing this deduction.
Enter your annual tracked card spending and your combined state and local sales tax rate to estimate the sales tax you paid over the year. Add any other SALT you've already accounted for, like property tax, to see your total SALT before the cap is applied. The calculator then applies the $10,000 annual cap (set by the 2017 Tax Cuts and Jobs Act) to show your actual deductible amount.
This is a simplified estimate — the IRS also lets you use standard sales tax tables based on income and location instead of tracking actual receipts, and swapping in large one-time purchases (like a car) can change the calculation. Confirm your approach with IRS Schedule A instructions or a tax professional before filing.
Frequently Asked Questions
Yes, if you itemize, the IRS lets you choose to deduct either state and local income taxes or state and local general sales taxes (but not both). Sales tax is often the better choice in states with no income tax.
The Tax Cuts and Jobs Act capped the combined state and local tax (SALT) deduction — income or sales tax, plus property tax — at $10,000 per year ($5,000 if married filing separately), regardless of how much you actually paid.